Palm swung to a loss in its fiscal fourth quarter as its revenue declined sharply and fell below Wall Street expectations.
An Associated Press report also said for the three months ended May 31, the firm reported a loss of €27.5 million (US$43.4 million), compared with a year-ago fourth-quarter profit of €9.7 million (US$15.4 million).
Revenue fell 26% to €188 million (US$296.2 million) from €254 million (US$401.3 million), the report added.
Sales of Palm's low-price, low-margin Centro are strong, but they're offset by slowing sales of higher-margin Treos.
Palm sold a record number of smart phones in the quarter, 968,000 units, or 29% more than in the same period a year earlier.
Palm hopes the continued success of the Centro, which the company said has sold 1 million units since its fall launch, will pull it back into the black.
Revenue fell, the company said, because sales of older Treo phones and Palm's traditional handhelds are slowing. Colligan said revenue would grow sequentially this quarter but losses would continue.