Palm finds itself in deep doo doo

Signs that PDA maker Palm is doomed are starting to appear.

The four horsemen of the apocalypse are apparently riding and they are not carrying a Palm Pre with them. Achild has been born with the head of Steve Jobs, and a jackdaw has alighted on the roof of Palm HQ.

Palm admitted that its current financial results are pants and it could have done things a lot better this year, the only problem is that we doubt it will get the chance.

Palm needed a good year desperately. After years of terminal illness it rallied to release the Palm Pre this year and bet the farm on the product.

Unfortunately the Pre was not up to much. While Palm shipped 960,000 smartphones to partners in the third quarter, only 408,000 of those were sold. This left stockpiles of Pre and Pixi handsets in warehouses.

The smartphone maker recorded a net loss of $22 million in the third quarter, which looks positively festive compared to the $98 million it lost in the same period last year.

Revenues of $349.9 million were also above the company’s estimates of between $300 million and $320 million, but this was not the result that shareholders hoped for. As a result, the company predicts that fourth quarter earning are likely to level out at around $150 million – less than half of what had been expected by Wall Street.

Jon Rubinstein, Palm’s chief executive said the result was disappointing to him personally.

He wished that he had released the Pre at Verizon prior to the Droid. Then it would have have gotten the attention the Droid got.

With results like this it is almost certain that rumours will fly that the outfit is about to be sold off or wound up again. This time it is harder to see how Palm can get out of the mess.