SUNNYVALE, Calif.—Palm Inc. said it expects revenues to fall short of its previous guidance for the first quarter of next year due to slower sales of its Treo device in carrier retail channels.
The company now expects revenues for the quarter, which ended Sept. 1, to be between $354 million and $356 million. Palm’s previous guidance called for revenues of between $380 million and $385 million.
Earnings per share are expected to meet previous guidance of between 13 cents and 14 cents.
“We will soon address the market dynamics responsible for our first-quarter revenue shortfall with two major product launches, one that improves our pricing position and both which extend our carrier relationships to global markets,” said Ed Colligan, Palm’s president and chief executive officer.
Analysts expected the company’s first-quarter EPS would be about 19 cents per share on revenues of $382.9 million.
Palm’s stock was down more than 8 percent on the news to around $14 per share.
The company said it expects to report full results Sept. 21.
