Handset maker Palm lost more in the third quarter than it initially reported because of a recent revaluation of securities affected by the credit crunch, an Associated Press report said. The company reported a revised loss of €36.32 million (US$57 million) in the three months ended 28 February, rather than the €20.1 million (US$31.5 million) that it reported last month, according to a securities filing.
The company earned €7.52 million (US$11.8 million) in the year-ago period, the report said. The revised loss comes as a result of a €15.9 million ($25 million) write-down for auction-rate securities that have lost value since the collapse of that debt market in February. Auction-rate securities can have terms of up to 30 years, but the interest paid on them is reset at auctions periodically, the report said.
The auctions held by large banks and other financial institutions for these securities recently have found few, if any, buyers.
That adds Palm to a long list of companies, cities and student loan organisations that have suffered losses because of the collapse.