Palm, Inc. announced that its third-quarter fiscal 2003 results will be below the guidance given on its second-quarter results conference call in December. Revenues now are expected to be between $205 – $210 million vs. previous guidance of $230 – $250 million. Gross margins are expected to be close to 30 percent compared to the low 30 percent range for the two previous quarters. Pro forma operating expenses are expected to be close to previous guidance. Other income/expense will include charges of up to $2.7 million related to the settlement of two legal matters. Channel inventory is expected to be within the company’s desired range, and balance-sheet metrics are estimated to meet previous guidance.