Personal Technology
Palm Stock Sinks on Revenue Forecast
Despite these challenges, Suva feels that Palm's recently launched Centro product is enjoying some success, albeit at the expense of the firm's margins. "We believe the company is heavily subsidizing the phone to hit its $99 price point," Suva explained.
In an attempt to streamline its business, Palm announced several cost-cutting initiatives Monday. These include reducing the firm's U.S. workforce, consolidating its European operations and shifting responsibility for Asia-Pacific sales, marketing and administrative support to its U.S. offices. As a result, the company expects to reduce its quarterly operating expenses by approximately $20 million by the fourth quarter of fiscal 2009. Palm expects to incur restructuring charges between $7 million and $9 million in the second quarter. The company also expects its cash and short-term investments to be between $210 million and $220 million at the end of the quarter. The company will release its second-quarter results on Dec. 18.TheStreet Premium Services
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