Palm Q3 earnings fall below expectations

Palm posted a third-quarter loss as the troubled smart phone maker's product range struggled against Apple's iPhone and Research In Motion's BlackBerry, an Associated Press report said.

For the quarter ending February 29, Palm lost €20.27 million/US$31.5 million compared with a profit of €7.59 million/US$11.8 million a year ago. Revenue fell 24% over the same period last year.

The report quoted CEO Ed Colligan saying. 'We've come through a tough quarter and continue to have a lot of work ahead of us.'

Palm is undergoing a reorganisation that began last year and Colligan pointed to the success of the company's €63.72/US$99 Centro phone as a sign of success: about 833,000 were sold in the third quarter.

Excluding extraordinary items, the company lost €10.94 million/US$17 million. A year earlier it reported a profit of € 10.62 million/US$16.5 million. Revenue was €200.9 million/US$312.1 million, down from €264.2 million/US$410.5 million the year before.