Palm Says It Will Have Loss in 4th Quarter

Palm Inc. said it will have a loss in its fiscal fourth quarter as consumers spend less than forecast on its electronic organizers. The company won’t achieve profitability as a result.

Revenue will be about $230million in the period ending today, less than the $290 million to $300 million Palm estimated in March, the Santa Clara, Calif.-based company said. Palm had expected to break even.

The news sent Palm shares down 16% in after-hours trading to $1.85 on heavy volume, after closing down 11 cents at $2.21 on Nasdaq.