Palm witnessed a period of unusually low sales in March 2000. The company expects sales in March of this year to fall well below the previous year, signaling an even more difficult road ahead in the fourth quarter, Bruner said. Palm expects to report a loss of 8 cents in the fourth quarter, officials said.
"We are clearly disappointed by the current business outlook," Bruner said.
Palm's (PALM) shares rose 7.36 percent during late trading Tuesday trading to close at $15.50 per share before the company released its earnings report. In the after-hours markets, however, shares of Palm had plummeted more than 30 percent at the time of this report.