CNET News.com reports that, as the company looks to divide in two, directors of Palm asked shareholders to approve a reverse stock split. According to the article, Palm’s directors unanimously agreed to a request that shareholders give approval to a reverse stock split in the range of 10-for-1 to 20-for-1, meaning shareholders would exchange somewhere between 10 and 20 current shares for one new share.

Author Ravi Kalakota believes financial services is in the best position of any industry to lead the mobile revolution, since the financial services industry is more information-based than product-based. Kalakota will speak and lead a panel discussion on mobile and other technology innovations at the LOMA Emerging Technology Conference on September 18-20 at the Inter-Continental Hotel in Chicago. Other sessions at the LOMA conference will be presented by experts from New York Life, Allstate, Bank One, AT&T, Penn Mutual Life, Northwestern Mutual, National Life, and more.

DDH Software, Inc. announces the launch of HanDBase 3.0 for handheld computers based on the Palm OS platforms. Coinciding with the 3.0 release, HanDBase will be launching several new add-on programs, including a Forms Designer and Sync Exchange for Microsoft Access and for ODBC data files.

CNET News.com has a roundup of articles on how the market contraction and price cuts are putting pressure on handheld makers already suffering summer’s traditionally slow sales season.

CNET News.com reports software maker AvantGo reported a narrower-than-expected second-quarter loss and announced that it will lay off about 40 percent of its work force. According to the article, the company reported a net loss of $4.3 million, or 12 cents a share, on revenue of $5.3 million. In the same period a year ago, AvantGo had a net loss of $13.9 million, or 43 cents a share, on revenue of $6.5 million.

CNET News.com reports Palm will cut prices by up to 34 percent on five of its six handheld lines. According to the article, the company cut the m105 handheld from $149 to $99, the m125 from $179 to $169, the m130 from $279 to $249, the m500 from $299 to $199 and the i705 from $449 to $399.

Palm, Inc. and Pepsi-Cola are teaming up with Frankie Muniz and Jane Kaczmarek of Fox Network’s “Malcolm in the Middle” for a back-to-school rebate on Palm m125 handheld computers. After the $20 rebate, consumers will have paid an estimated $149 for Palm’s m125 handheld, making it one of the least expensive handhelds on the market.

Muniz, as Malcolm, will be featured with Palm m125 handhelds in large, in-store Pepsi displays at more than 100,000 grocery stores nationwide. In co-branded marketing materials and advertising, Palm and Pepsi-Cola will offer a mail-in rebate for $20 for the purchase of a Palm m125 handheld. Additionally, consumers have the chance to enter a sweepstakes to win a grand prize trip to Hollywood where they can visit the set of hit TV show “Malcolm in the Middle.” Other prizes include Palm and Pepsi merchandise. No purchase is necessary to enter the sweepstakes.

Handspring has discovered a defect in a component of the backlight assembly in some of its Treo 90 and Treo 270 products, which can render the backlight inoperable. They say most of their Treo 90 and Treo 270 products will not experience this problem and the backlight failure does not in any way affect or cause loss of the user’s data. It is impossible for a user to determine whether a particular unit will fail, but in general, units that operate for longer than six weeks without backlight failure are unlikely to fail in the future.

Handspring is currently screening all units in its inventory for the defective component and is building new product with new, verified components. As a cautionary measure, the company is currently not shipping orders of Treo 90 and Treo 270 until the screening process is completed. Shipments should resume within the next two to three weeks.

Palm, Inc. and IBM announced plans to develop a joint capability that will let customers securely access enterprise applications and data using select models of wireless-enabled Palm branded handheld computers, including the Palm m515 color handheld.

Through IBM’s WebSphere Everyplace Access (WEA), customers would be able to build upon their technology investments and existing development skills to extend applications beyond the firewall on wired networks using wireless technology and Palm handhelds. In addition, IBM and Palm plan to deliver the first enterprise-class instant messaging and awareness solution for Palm handhelds using Lotus Sametime technology. Users of select wireless-enabled Palm handhelds would be able to exchange instant messages among themselves and with desktop Sametime users. Under this agreement, Palm will work with IBM to implement, tune and deliver a WEA-compatible mobile client suite for Palm handhelds. The companies plan to jointly market and promote the capability.

Infinity Softworks Inc. announced an advanced real estate software solution built on powerOne Finance, its financial calculator software for handheld computers. The powerOne Commercial Real Estate Professional Solution combines powerOne Finance with 50 calculation templates designed to increase the productivity of commercial real estate brokers, appraisers, and investors. The solution includes five categories of templates–Lease, Loan, Investment, Cash Flow, and Area–that focus on reducing project cycle time. Individual templates for cash flow, risk assessment, rate of return, performance measures, appraisal, mortgage, lease, commission, and qualification calculations integrate into powerOne Finance