Palm Slashes Guidance Again

Palm (PALM Quote) expects a swing to the red and warns of a big sales shortfall in the fiscal second quarter.

The Sunnyvale, Calif. device maker says it will have an adjusted net loss of 9 cents a share. Analysts were looking for a 4 cent profit, according to Yahoo! Finance.

Palm blamed product delays for a slump in sales in the quarter ended last week. Revenue is now expected to be in the range of $345 million to $350 million, which is below the lowered target of $375 million the company forecast in October.

Analysts had been looking for sales of $376.

"We are disappointed that we did not get a key product certified for delivery in the quarter, but we are focused on realizing the long-term benefits and opportunities," CEO Ed Colligan said in a press release Thursday.

The company plans to report fiscal second-quarter results on Dec. 18.

Palm's PDA devices and Treo cell phones have been surpassed by surging popularity in smart phones from tech shops like Apple (AAPL Quote), Research in Motion (RIMM Quote) and Nokia (NOK Quote).

Palm shares were down 52 cents, or 8%, to $6.07 in after-hours trading.