Palm Updates Q2 FY07 Guidance
Palm, Inc. today updated financial guidance for the second quarter of fiscal year 2007, ending Dec. 1. The news release contains a quote from CEO Ed Colligan that attributes the revenue shortfall to a delay in carrier certification on the Treo 750 in the US, which he says will likely ship sometime in January.
Palm currently expects revenue to be in the range of $390 million to $395 million for the second quarter of fiscal year 2007. This compares with earlier guidance of $430 million to $450 million provided Sept. 21, when Palm reported its first quarter fiscal year 2007 results. The revenue shortfall is due primarily to a delay in completing the certification process for a product that the company had previously expected to ship within the quarter.
Earnings per diluted share are expected to be $0.10 to $0.11 on a GAAP basis and $0.15 to $0.16 on a non-GAAP basis. This compares with earlier guidance of earnings per diluted share of between $0.15 and $0.18 on a GAAP basis and between $0.20 and $0.23 on a non-GAAP basis.
"Smartphone sell-through across our existing products is strong, reflecting solid business fundamentals in the face of significant competitive pressure," said Ed Colligan, Palm president and chief executive officer. "However, our Q2 FY07 revenue will be constrained by a delay in certification of a key product. We now expect to start shipping the Treo 750 for the U.S. market early in Q3 FY07. Our Treo 750v launch in Europe is doing quite well, and we expect international revenue for Q2 FY07 to be strong."
Full results for the company's second quarter of fiscal year 2007 will be announced on Tuesday, Dec. 19, at the close of the market at 1:01 p.m. Pacific Standard Time, and a conference call will follow at 1:30 p.m. Pacific/4:30 p.m. Eastern Standard Time.