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Judgment day for Palm

Judgment day for Palm logomacitynet1200wide 1

First, during a keynote at the PC Expo Convention, the CEO Karl Yankowsky, will try to trace a path for the exit from the crisis that is gripping the company, then, with closed markets, the numbers of the quarter that is really disastrous will finally arrive . It will therefore be a very busy day for Palm, perhaps one of the most important in the brief history of an independent company. The eyes of most IT, especially those of analysts who are eager to understand what strategy will Palm adopt to return to being not only the protagonist of the market but also a reality that has prospects for economic growth. At the moment the most reliable forecasts speak of losses around 19 cents per share, the result of a red in the balance sheet between $ 170 and $ 190 million on sales of $ 140 or $ 150 million. A very bad blow that also means rapidly decreasing reserves of liquids so that if the gear is not reversed by the end of November Palm could be dry in terms of capital with the imaginable consequences. To buffer this situation, Palm decided to sell the land on which the new headquarters in Santa Clara was to be built, recovering approximately $ 200 million, and to block some mergers and acquisitions of companies it had budgeted for. Finally, as this was not enough, some market companies have hypothesized that for the first time since the PDA market has reached significant proportions, there will be those (precisely Compaq) who make more turnover than Palm.What they all expect now to understand, as mentioned , what are the strategies to reverse this situation. The first step will certainly be staff cuts, already announced but not in their exact size. Then Yankowski will say what the structural measures to save costs will be; among these, the formalization of the separation of the software business from that of the hardware already feared a few days ago is not excluded. Finally, it will be a matter of understanding how Palm intends to consolidate and give greater organicity, through strategic alliances, to the market of large corporations deemed the most interesting in terms of growth.

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