Palm ( PALM) missed analysts' revenue estimate in its third-quarter results Thursday and saw its losses widen as demand slumped for the company's smartphones.

The firm's revenue saw its revenue fall to $90.6 million, down from $312 million in the same period last year, and well below analysts' estimate of $104.95 million.

Palm's performance, however was not completely out of the blue, and the firm recently warned that sales could come in below Wall Street's expectations. The Sunnyvale, Calif.-based company projected revenue between $85 million and $90 million.

The company explained that smartphones brought in just $77.5 million during the third quarter, down 72% from the same period last year.

Palm posted a third-quarter loss of 89 cents a share on a net loss of $98 million, compared to a loss of 53 cents a share and a net loss of $57 million in the year-ago quarter.

Excluding charges, Palm reported a loss of 86 cents a share on a net loss of $94.7 million, compared to a loss of 16 cents a share on a net loss of $17 million in the third quarter of 2008. Analysts had estimated a loss of 59 cents a share.

"We're proceeding through a challenging transitional period, however, our current results shouldn't overshadow the tremendous progress we've made against our strategic goals," said Ed Colligan, the Palm CEO, in a statement. "We're poised to user in a new era at Palm."

This "new era" will clearly revolve around Palm's hotly anticipated Pre phone.

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