Announces lower forecast for Q3 FY2010

Feb 25, 2010 15:44 GMT  ·  By

Sunnyvale-based mobile phone maker announced today an update to its financial guidance for its third quarter of fiscal year 2010. According to the company, it expects for the revenues in the time frame to be “in the range of $285 million to $310 million on a GAAP basis, and in the range of $300 million to $320 million on a non-GAAP basis.” The handset vendor also notes that the revenues for the quarter are impacted by slower than expected consumer adoption of its products, which translates in lower order volumes from carriers.

At the same time, the company also revealed an updated forecast for the entire year 2010, as it now expects for its financial results to be much lower than the previously announced $1.6 billion to $1.8 billion forecast. The mobile phone maker is set to announce its financial results for the third quarter of the financial year 2010 on Thursday, March 18, and says that it will also detail more on its new expectations at that time.

Palm webOS is recognized as a groundbreaking platform that enables one of the best smartphone experiences available today, and our work to evolve the platform and bring industry-leading technology to market continues. However, driving broad consumer adoption of Palm products is taking longer than we anticipated,” said Jon Rubinstein, chairman and chief executive officer. “Our carrier partners remain committed, and we are working closely with them to increase awareness and drive sales of our differentiated Palm products.”

The company's Palm webOS platform, as most of you might already know, is currently available on the market on two mobile phones, each of them in two versions, the Palm Pre and Palm Pixi (with the Pre Plus and Pixi Plus models available for purchase via Verizon Wireless in the US). It seems that the market performance of these handsets was not as initially expected, and that Palm will also be affected by the emergence of the newly unveiled Windows Phone 7 OS from Microsoft, all these determining the company to lower its original financial forecast for Q3 of financial year 2010.