It expects to report revenues for the quarter of $85-90 million, while cash used for operations is expected to be around $95-100 million, leaving it with $215-220 million in cash, cash equivalents and short-term investments.
Is this a problem? Well, the company says it's seeing reduced demand for its older smartphones, so it needs to get its new Palm Pre smartphone out as quickly as possible. However, it may be a few months.
"The much-anticipated launch of the Palm Pre remains on track for the first half of calendar year 2009, but as expected we've got a difficult transition period to work through," says president and CEO Ed Colligan.
"Despite the challenging market environment, the extraordinary response to the Palm Pre and the new Palm webOS reaffirms our confidence in our long-term prospects and our ability to reestablish Palm as the leading innovator in the growing smartphone market."
However, Palm admits that it's investigating ways to strengthen its working capital position - necessary to ensure the Pre gets the big-budget launch required to make it and future products a success.
