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