updated 04:00 pm EDT, Mon April 7, 2008
Palm: Higher Q3 losses
Beleaguered smartphone maker Palm lost far more in its last financial quarter than it first realized, the company has announced. While it previously admitted to losing $31.5 million in a quarter ending February 28th, it now says it lost over $25 million more, for an approximate total of $57 million. In the same quarter of the prior year, the company had posted a profit of $11.8 million. The extra loss is attributed to a $25 million write-down for auction-rate securities, which have since fallen in worth due to a collapsing American debt market.
Palm's fortunes have fallen dramatically within the last two years, bringing the company from a once-dominant position in the smartphone market to being a minority player, facing stiff competition from the likes of Apple and Research in Motion. The company has seen revived hopes thanks to its Centro phone, but is still struggling with its legacy of poor Treo sales.