Palm's preliminary quarter-end results show drooping revenues, bleak outlook

Remember when we used to write about Palm in order to talk about its devices and / or operating system(s)? Man, those were the days. Now, it just seems like one sadness-filled report after another, and just days after hearing that it would be cutting an undisclosed amount of employees in order to trim operating expenses, in comes even more doom and gloom courtesy of its preliminary Q2 (fiscal year 2009) results. The company is expecting to record revenues ranging between $190 million to $195 million, far short of the $331 million Wall Street had been counting on. The shortfall was blamed on "a difficult economic environment [which had] greatly intensified the negative impact on product sales." Of course, the visionary Ed Colligan (CEO) still maintains that by reducing its cost structure it can "launch next-generation products as planned," but seriously, why should we believe that line now? Time to put up or shut up, Palm.

[Via CNET, image courtesy of PalmFocus]

[John from Buffalo @ Dec 2nd 2008 9:02AM]

Stick a fork in 'em. Their done.

[Bobby @ Dec 2nd 2008 9:07AM]

Another example that bad companies (Apple, Sony) survive while good ones fall.
Remember Palm III, one month on 2 AA batteries ?

[Aaron @ Dec 2nd 2008 9:33AM]

Yeah, it's a real shame when great engineering is wasted by poor management. We'll miss you, Palm.

[Chuck @ Dec 2nd 2008 10:12AM]

You kidding? Large corporations are nearly as hard to get rid of as government agencies. They'll go through the bankrupt process and respawn someplace.

[Jon Acheson @ Dec 2nd 2008 10:23AM]

Bobby:

I'll miss the Palm of the 1990's too, but that company has been dead and gone for ten years already.

Plus, they abandoned the customers who kept them in business when they stopped making PDAs. Not a whole lot of love left for them among the Palm user base.

[Jeff @ Dec 2nd 2008 10:46AM]

Well, that's what happens when you're the market leader of a market that doesn't exist anymore.

[ShogunMaster @ Dec 2nd 2008 1:03PM]

Jon,

"I'll miss the Palm of the 1990's too, but that company has been dead and gone for ten years already."

The problem is that Palm still is Palm of the 90's. If they ever turned into Palm of the 00's, they might have had a chance. I mean seriously, I loved my Treo 600 back in the day, but rewrapping a Treo 600 and calling it a Centro doesn't mean you've evolved.

Palm does deserve to die, but I still have a secret hope that they have some huge innovative way of rising to the top again. Just don't have much faith in it.

[NickNick @ Dec 2nd 2008 9:03AM]

I want to see a demonstration of Nova before Christmas. so badly :(

[Komps @ Dec 2nd 2008 9:10AM]

Palm???....this company is still around...

[Jonathan @ Dec 2nd 2008 9:11AM]

My Treo 650 hasn't given up and neither have I. Hang in there Palm. I can't wait for the next palm operating system [larger screened] Treo Pro.

[Isak the Red @ Dec 2nd 2008 9:31PM]

"...I can't wait for the next palm operating system..."

If I had a dollar for every time I've read that same line. Unfortunately, you MUST wait . . . and wait . . . and wait. How many years has it been so far for PalmOS 6? Just as with the U.S. auto industry: Palm's woes are mostly self-inflicted.

[NickNick @ Dec 2nd 2008 9:21AM]

I have a question to anyone who knows about mobile OSes

Is Palm OS the only instant-on OS out there? Thats what i like about palm...

[TheGasMan @ Dec 2nd 2008 9:31AM]

It isn't instant on. It just shuts off its screen when you aren't using it. Poke the reset button in the back and watch it reboot if you want proof that it isn't instant on. It's not any different than your PC or any other OS out there. They're all the same.

[NickNick @ Dec 2nd 2008 9:40AM]

ah ok, but still with my Zire 72 when i reset it, it does take only 3-4 seconds to reboot, faster than any other mobile OS.

[William Becker @ Dec 2nd 2008 9:27AM]

BlackBerry is an instant on OS too. I have a BlackBerry Curve 8330 with Us Cellular and a Palm Centro with Verzon, I love them both

[el Capitan @ Dec 2nd 2008 10:08AM]

Instant on?

My BB 8830 takes 133 seconds to reboot!!

Worst. Phone. Ever.

[Salsa Shark @ Dec 2nd 2008 11:09AM]

BlackBerry is one of the slowest-booting devices out there...it takes my 8800 at least three minutes.

[ProfessorKaos @ Dec 2nd 2008 9:28AM]

Bailout! Well if they follow suit like circuit city, we'll either have a bailout chapter 11, or a sweet liquidation sale. :D

[iEye @ Dec 2nd 2008 3:10PM]

No bailout, perhaps if they cut costs

- All those "Windows" look like they cost a bundle to clean, perhaps letting them stay dirty would help the bottom line.
Or relocate and work in a dank hole, like where the products are sold.

They just got "the Palm!"

[strider_mt2k @ Dec 2nd 2008 9:29AM]

It's better to burn out than it is to rust.

hey hey my my

[Mark @ Dec 2nd 2008 9:34AM]

I yield to no one in my hatred of the buggy 700p, but the Centro is the real deal-- no hitches, no problems, no bugs. Yeah the tech is old but it works well and is small. I'm willing to tread water a little while longer, Palm.....

[TheGasMan @ Dec 2nd 2008 9:35AM]

A struggling company, struggling even more during a recession. This shouldn't surprise anyone. Actually, how about finding us some companies that *aren't* struggling right now? Slim pickings.

"Time to put up or shut up, Palm."
Yes, yes, that's both intelligent and helpful. Actually get angry with a struggling company because they're having problems. That'll fix things. Are you mad they haven't put out a product, or are you mad they haven't died? It's bizarre either way. Oh no you di'in't!

[utahnkid @ Dec 2nd 2008 6:11PM]

Apple isn't. They've been the only tech company to not only miss out on the major losses but actually GAIN market share in this economy. They're stock started to drop (nothing you can do to control the stock market) but they were just estimated to do even better then expected and it climbed back up.

I'll say it over and over.. The ONLY companies eating shit right now are the ones that either didn't prepare or were being run like a withdrawal-only piggy bank by their CEO's. If you provide a desired product and do so at a fare price, you're doing just fine right now. It's not anyone's fault but their own that my 755p is running an OS that looked and worked virtually the same 5 years ago.

[Max @ Dec 2nd 2008 9:49AM]

Goodness, what does Palm even DO anymore?

I have a hard time comprehending how a company can become so backwards and frozen in its own ineptitude.

I used to be a massive Palm fan back in the day, but back in the day I was using the same damn OS they're installing today.

Sad....

[Dana @ Dec 2nd 2008 10:08AM]

No tears here. I wrote them and told them exactly what I wanted - and it was simple. All they've had to do is update their operating system ONCE in the last 15 years. Did it happen? Nope.

[A.R. @ Dec 2nd 2008 10:14AM]

I'm still glad Palm is around. Got the Centro and I love it. Nothing can match it's bang-for-the-buck. It's everything my old zire 71 wasn't. Also the amount of useful palm software created over the years is staggering.
But as with any company, innovate and be effective,cut costs and be efficient, or die a slow death. Good luck Palm.

[nick @ Dec 2nd 2008 10:19AM]

I know that I'm not familiar with running a large business, the different problems that must arise daily are surely not easy to solve, but one thing I do understand is making value in a product. I think palm needs to steer clear of companies like HTC and not just announce new phones every month, because the treo pro is truly good enough as a phone. It just needs to have it's software overhauled. Aim for things like battery life, startup time, and most of all useful business software. Executives and power users don't want a fun phone that frustrates them to use, they want something that works. In my mind, most of the recent updates to phones, even the business ones, are aimed at competing with the iphone and not enough at competing for the business market. Treo pro's could compete if the software keeps getting updated for free, and the phone costs less. Forget the sdk/independent developer mentality, just make good software, if you don't have the manpower, hire them, and get a good workflow going, 190 million is certainly enough to afford a team of 50-100 good CS/engineers. In fact, I'm sure Palm already has the people but they're busy reinventing the wheel making their own operating system. Take Android, Make Good Business Software For It, Don't Allow Others To Use Said Software = Profit.

[kikiki @ Dec 2nd 2008 10:36AM]

ooh..now iam gonna keep my old treo 650, since its will become collector item like dreamcast hehehe

[Charlie @ Dec 2nd 2008 11:07AM]

Is Palm killed by lack of products or by lousy press? Every Palm story goes "it's time for something more." The gadget press has been relentless in saying "This is nothing more than what we saw before." But even the iPhone can't do the functions that have been in a Palm for the past six years - create and edit a spreadsheet? word document? search the whole device for keywords? type on a full-size keyboard (external)? We don't have to mention cut-and-paste. Palm OS doesn't do multi-tasking and it's a major flaw. iPhone doesn't do multi-tasking and it's an "understandable design decision."

But somehow, I haven't been able to find any of the "new" gadgets that work so well. I don't approve of coming out with something more elaborate and complicated simply to put out something new. My experience with their products has been positive and my main worry is that in the attempt to produce that "next generation" machine, they will mess up the best PDA/phone.

History: iiic, two iiixe, two Sony Clie, TX, two 700P

[Zadillo @ Dec 2nd 2008 11:42AM]

I probably would still be using my Treo 650 if I could have gotten a better web browsing experience on it; but Blazer is a piece, and I never had any luck with Opera Mini (every update I tried, and every configuration of the IBM JVM I tried, it would still invariably crash on me). And frankly, even Opera Mini isn't really as efficient a browsing experience any more as what you can get with Android, the iPhone, the new BlackBerry browser, or even stuff like Skyfire on WinMo. I think the problem with Palm now is that their competition on all fronts has surpassed them in different areas; yes, as you point out, there are things the Palm does that the iPhone doesn't, but Palm has to compete with WinMo, Blackberries, Android, etc.

[clicclic @ Dec 2nd 2008 11:16AM]

The Centro is an amazing phone with the best OS for its form factor/purpose. That said, Palm has missed so many opportunities that have been filled by other companies my head spins: Blackberry (real-time email), WinMo (outlook sync), and now the Internet (iPhone, gPhone). And they've been doing this phone thing longer than all of them!

Is there anything left? I guess just the consumer experience, specifically the low-tech/low-cost consumer experience (teens, girls, etc). The Centro fills that void although the marketing message is barely getting through. They need to create a fun, 'cool' phone to remain viable. Remember how cool Handspring was? No reason why that can't be repeated even now.

The opportunity to expand the Centro 'experience' exists, but Palm needs to work fast(er). Partner with Facebook and create a seamless Facebook experience for example. Partner with Quicken and create a lifestyle/savings/money management cloud-phone for example.

[Jay Stenson @ Dec 2nd 2008 12:29PM]

I have been a long time user of the palm products since the Palm V. After 12 years Palm finally got it right with the centro. I love my centro. I have tried BB and the iphone and nothing matches the efficency and the number of good software, and customizations, etc. I don't know how they can say that Palm OS is outdated. With the iphone you can't even cut, copy paste, use tasks, sync memos or tasks with outlook, make a video, no microsoft office, can't add an attachment to an email, no today screen (unless jailbroken), no shortcuts when typing (so everytime you need to enter your email you have to do it manually.) And this is supposed to be a better more modern OS than Palm? You are talking about things that Palm has done twelve years ago that the iphone can't. The iphone is a great multimedia device, but that is it, as far as a business machine it fails. Aside from safari the iphone was worthless to me. I returned it and stuck with the centro.

[YukonJack @ Dec 2nd 2008 1:51PM]

I heard that Palm bought the rights to Duke Nukem and it will finally be out by Christmas!

[andy @ Dec 2nd 2008 3:32PM]

Foleo was before its time. You all mocked it and now you praise copycats.

[Bob-o @ Dec 2nd 2008 6:09PM]

> cutting an undisclosed amount of employees

Man, who taught you how to write? "Cutting an undisclosed number of employees", perhaps?

Does Engadget employ editors?

[Achilles @ Dec 2nd 2008 6:28PM]

That's the result when you abandon your identity the Palm OS. I used to be a very happy Palm OS user, but no development since then. The revenge of Windows mobile. I would love to see an advanced and developed Palm OS in a dedicated adavnced and devoleped device.

[yrag @ Dec 2nd 2008 7:23PM]

@ Charlie & Jay Stenson: WELL SAID!

I also agree with Jonathan, NickNick, William Becker, Mark, A.R. Charlie, & Achilles.
The Palm OS is amazingly compact, efficient and configurable with deep (though flagging) 3rd party apps— fact is WAY before there was an Apple App Store or Android, Palm was THE OS for small & large handheld developers.

Having said that, all the board of directors of Palm MUST be Ed Colligan's (CEO) relatives. There's no other sane reason he still has a job. What kind of leadership has he exhibited in since Palm merged with Handspring to acquire the Treo technology? He REALLY ticks me off— ED, lead or give the controls to someone who can!

STOP making excuses and START making great products again.

I own an old Palm 650 and an iPhone, I still find the Treo much easier to use and get things done on. Yeah, for sheer "WOW" factor the iPhone can't be beat especially now with the Apps Store. But for day-to-day ease of use and quickness I feel that for me the Treo 650 STILL has it all over the iPhone.

History: original Palm Pilot, Sony Clie, T1, T3, Treo 650

[Cassini @ Dec 3rd 2008 4:56AM]

Good grief, Palm is still alive? Just die off already. Palm is like a bad dream that just won't go away.

Palm, no cares and hasn't cared for years about what you're doing.

[Tommy Gustav @ Dec 3rd 2008 8:40AM]

"Palm, no cares and hasn't cared for years about what you're doing."

You are somewhat correct here. Nothing like Apple though. Jobs tells the customers what they are going to like and not like. Who sets up a smartphone with no copy paste, office suite, no today screen and no tasks? Apple is right up there with GM. We all know what is happening to GM finally. GM did the same thing Apple is doing, not listening to their customer base. Its going to come back and bite Apple in the a#& too.

[tekdroid @ Dec 3rd 2008 1:52PM]

...but Palm has removable battery technology. Apple are still working on it.

[John @ Dec 3rd 2008 11:19PM]

Palm OWNED this industry a few years ago - remember the search for a "Treo killer"? Palm just sat back and let it fall away. I too was a devout Treo addict, one of millions simply abandoned by Palm. To heck with them - I spent hundreds on Palm powered programs on my old Treos while we were all assured a new operating system was forthcoming. That was at least three devices ago. Treo Pro????? give me a break. Fool me once shame on you.........