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Palm Pilot Maker to Cut 250 Jobs

November 29, 2001

SANTA CLARA, Calif. (AP) _ Palm Inc. said Wednesday it will cut its work force by 250 employees and contractors, and expects current quarter results to meet Wall Street expectations.

The Santa Clara-based handheld device maker, which has been struggling to recover from steep losses this past year, said it expects revenue for the fiscal second quarter ending Nov. 30 will range from $250 million to $280 million. That is toward the upper end of its prior guidance, Palm said.

Palm said it expects a pro forma loss of 7 cents per share, in line with the consensus estimate of analysts surveyed by Thomson Financial/First Call.

In September, Palm lowered its revenue expectations for the current quarter, citing the Sept. 11 terrorist attacks and heightened economic uncertainty. But ``we’re pleasantly surprised by the general pickup of sell-through in October, and that trend seems to be continuing,″ Judy Bruner, Palm’s chief financial officer, said in an interview Wednesday.

The latest job cuts will reduce Palm’s work force of 1,500 by about 16 percent. Palm also cut 250 employees in March.

Palm plans to announce results Dec. 19.

Shares of Palm were down 21 cents to $3.41 at the close of the Nasdaq Stock Market. In after-hours trading following the announcement, shares were back up 21 cents, or 6 percent, to $3.62.

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On the Net:

http://www.palm.com

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