Tag - PALM

Palm, Inc. (Nasdaq: PALM) shares are rising in early trading after investment bank JPMorgan Chase & Co. (NYSE: JPM) upgraded the Sunnyvale, Calif.-based smartphone maker to “overweight” from “underweight.” In a note to investors, JPMorgan said it expects Palm to introduce several new phone models during 2008 and stronger-than-projected sales of its Centro smartphone.

Sprint Nextel Corporation’s (NYSE: S) exclusive Centro deal is ending and JPMorgan projects that Verizon Communications Inc. (NYSE: VZ) and AT&T Inc. (NYSE: T) will introduce their own version of the Windows-based mobile phone. The investment bank also said that a new operating system will be released in late 2008, which will prompt increased product activity in early 2009.

JPMorgan projects a fiscal 2008 loss of $0.38 a share, and a loss of $0.09 per share during fiscal 2009. Wall Street analysts, on average, expect a 2008 loss of $0.17 per share and a 2009 loss of $0.05 per share.

In other news, Palm’s CFO Andrew Brown is scheduled to make a presentation at Thomas Weisel Partners Technology, Telecom & Internet Conference 2008 at 7:25 p.m. ET.

Cell phone-maker stocks rose during Friday’s trading after Motorola, Inc. (NYSE: MOT) said it is contemplating selling or spinning off its struggling handset business.

In morning trading, PALM shares are up 5.48%, or $0.33, at $6.35. Over the last 52 weeks, shares have ranged from $4.25 to $9.93.

Palm, Inc. (Nasdaq: PALM) shares are down after the struggling maker of Treo smart phones laid off 10% of its workers to cut expenses. The Sunnyvale, Calif.-based firm said the layoffs are part of a restructuring. The firm is eliminating more than 100 jobs out of 1,150 staffers worldwide.

Last week, Palm lowered its second-quarter earnings guidance to between a loss of $0.22 and $0.24 per week, compared with previous guidance of a loss between $0.01 and $0.03 per share. Second-quarter revenue is now expected to be between $345 million and $350 million, from a previous range of $370 million to $380 million.

The company said the layoffs, which will include reassignments, was part of an effort to “focus and better align resources behind core initiatives” and “to ensure that our expenses are in line with projected revenues.”

In morning trading, PALM shares are down 1.23%, or $0.07, at $5.64. Over the last 52 weeks, shares have ranged from $5.33 to $9.93.

Palm, Inc. (Nasdaq: PALM) shares are plunging after the device maker reported after Thursday’s close that shipping delays, along with “unforeseen” warranty repairs, will cause a net loss in its latest quarter of between $0.08 and $0.10. The company cut its second-quarter revenue outlook to a range of $345 million to $350 million, from $370 million to $380 million. Analysts expect earnings of $0.04 per share on sales of $376.4 million.

"We are disappointed that we did not get a key product certified for delivery in the quarter, but we are focused on realizing the long-term benefits and opportunities that inspired our transaction with Elevation Partners,” CEO Ed Colligan said in a statement. “We are pleased with recent improvements in our product delivery engine, the early success of Palm Centro, and the significant progress we've made on our strategic platform.”

In morning trading, PALM shares are down 16.54%, or $1.09, at $5.50. Over the last 52 weeks, shares have ranged from $5.33 to $9.93.