As Palm (PALM) reported its most recent quarter, the company CEO said: I’m confident that in fiscal year 2008 more and more standard handset customers will demand the capabilities and ease of use of Palm smartphones, which aligns us well for future growth and profitability." Then, he guided for $355 million to $365 million in the next quarter. Revenue in the quarter being reported was $401 million.

It just doesn’t match up.

Otherwise, Palm’s revenues were flat with the same quarter last year which ended in May. But operating income fell from $23.4 million to $17.1 million. The company said that sales of its Smartphone went well. Perhaps someone should tell them they may be offering too much of a discount.

Douglas A. McIntyre