updated 07:00 pm EST, Tue March 27, 2001
Palm beat earnings estimates by a penny and topped revenue expectations in the third quarter, but cut back its outlook for the future. The company, which shipped 2.1 million of its handhelds during the quarter, reported a pro forma net income of $9.3 million on revenues of $473.8 million. Additionally, the company announced it will be laying off 250 employees16 percent of its work forceas well as cutting 400 contract workers. Shares of Palm slid 25 percent in after hours trading following the news.