Palm will miss Q1 revenue target, promises new phones

Palm expects to report fiscal Q1 2007 revenues to be in the range between $354 and $356 million, down about 7% from the earlier guidance of $380 million to $385 million. Palm said that lower than expected carrier retail sales of its Treo smartphone were responsible for the revenue shortfall.

Ed Colligan, Palm president and chief executive officer, mentioned that the company will "soon address the market dynamics responsible for our first quarter revenue shortfall with two major product launches." One model aims to "improve" Palm’s pricing position, the other will enhance "carrier relationships to global markets," the firm hopes.

Palm will report its full Q1 2007 result on 21 September.