Palm: Can Added Carriers Cure What Ails It?
For Palm (PALM), the question today boils down to this: Can the company improve its fortunes by selling its wares through Verizon (VZ) and AT&T (T)?
Palm shares are getting clobbered today after last night’s announcement of financial results for the fiscal second quarter ended November. While revenues were ahead of guidance, the company lost more money than expected in the quarter – and it warned that it would, beef up R&D and marketing spend going forward as it attempts to build up the brand. The company repeated its previous forecast of revenue for the May 2010 year of $1.6 billion to $1.8 billion; but it also conceded that sales through Sprint (S) have disappointed. Sell-through in the quarter was down 29 percent sequentially.