Palm Says Revenue Hurt by Slack Sales

Palm Inc., the dominant maker of hand-held computers, warned of a shortfall in its quarterly revenue because of its latest stalled effort to sell gadgets to business clients, driving its battered stock down another 10%.

The Milpitas, Calif.-based company said weak corporate spending on technology has muted demand for Tungsten T, a high-end model of the pocket-size digital organizers that made their debut in 2002.

Third-quarter sales will range from $205 million to $210 million, down from the previous estimate of $230 million to $250 million it gave in December, and off from $292.7 million in the year-ago third quarter, Palm said. The quarter ended in February.

Palm closed down $1.28 to $10.32 on Monday on Nasdaq.