Palm posts profits but cuts 250 jobs

Palm beat wall street predictions by one cent, reporting earnings of two cents per share but down three cents on the comparable period last year. Its sales in the third quarter were $470.8m, up from last year's $272.3m.

However, Judy Bruner, CFO, said demand for products had fallen as a result of the global economic slowdown and predicted a fourth quarter loss of between $80m and $85m.

Palm is cutting 250 jobs and is delaying the construction of its new headquarters in San Jose, California.

At the market's close on Tuesday, Palm shares had closed up $1.06, or seven per cent, at $15.50, but in after hours trading stock plummeted 35 per cent to $10.03.