Doug Jeffries, the Chief Financial Officer for ailing tech firm, Palm Inc. (PALM) approximated fiscal fourth-quarter revenue for the company would sink beneath $150 million. PALM has been hard hit by the weakening demand for smart phones.
Despite the dismal prediction, Jeffries sees the fourth quarter results as in exception rather than the start of a rule, pinning the blame on excessive inventory and weak consumer spending.
Palm came forward with third-quarter revenue reports of $350 million.Analysts had expected numbers somewhere in that ballpark for the fourth quarter, predicting $306 million rather than the $150 million forecast by Jeffries.
Chief Executive Jon Rubinstein called the new numbers, "deeply disappointing."
When questioned on the possibility of a takeover Rubinstein remained mute, stating only that a "reasonable offer" may be considered by the board. More than the possibility of a takeover though, Rubinstien says Palm is focuing on better both the product and the operation.
First and foremost, Palm will be increasing its marketing efforts and working to grow its in-store presence. Already, Palm has taken note of improvements from these actions.
Palm shares closed up 5.2 percent to $5.65 in Thursdays session before slipping 12.6 percent to $4.84 after-hours.
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