Palm has said that its WebOS devices aren't selling as well as the company had hoped and that revenues are well below what they expected them to be. CEO Jon Rubinstein said in a letter to employees that Palm expects to report Q3 revenues of between $300 and $320 million, a significantly lower number than the guidance figures offered to Wall Street ($1.6 to $1.8 billion).
Palm said in a press release yesterday that revenues are being impacted by "slower than expected consumer adoption" of the company’s products. This has resulted in lower than expected order volumes from carriers and the deferral of orders to future periods.
Shortly after the press release went out, Rubinstein sent out a letter to employees explaining why the company had made this information public before it announced it's Q3 results in March. Rubinstein also played a little 'pass the buck' and shifted some of the poor sales blame to Verizon.
"I realize this news is difficult to swallow. We made this announcement today to prevent a surprise for Wall Street when we announce quarterly earnings in March. … Dave Whalen and I just returned from a very successful meeting with Verizon Wireless, where they acknowledged that their execution of our launch was below expectations and recommitted to working with us to improve sales."
Rubinstein went on to say that despite sales being slow than expected, he was still confident that the company "has was it takes to get the job done."
Check out his full letter below.