The company announced that it expects to record revenues for Q2 fiscal year 2009 in the range of $190 million to $195 million. The revenue decline vs. the company's Q1 fiscal year 2009 and Q2 fiscal year 2008 is a result of reduced demand for maturing smartphone and handheld products. The company stated that while it had expected these factors to pressure revenue in its November 2008 and February 2009 quarters, the difficult economic environment has greatly intensified the negative impact on product sales.
It's not the economy, stupid. It's that no one wants your phones anymore unless they're on deep discount.
Palm Implements Programs To Reduce Operating Expenses by 20% by Q4 FY09 [Investor.Palm.com via Tom Krazit]