Auction-Rate Securities Knife Palm (PALM)

In what is likely to become almost a routine announcement for public companies, Palm (NASDAQ: PALM)  revised its fiscal third quarter loss.

The device company took at write-down for the value of auction-rate securities carried on its balance sheet. The haircut was $25 million.

The Palm loss jumped from $32 million to $57 million.

Palm may have to take another write-down on the paper in the next quarter if the value of these auction-rate notes, which now rarely trade, falls further.

Douglas A. McIntyre