After canceling its controversial Foleo product and continuing to struggle with a shift away from the personal digital assistant market, Palm warned that its upcoming earnings report could be weaker than expected.

For the quarter ending Aug. 31, Palm will lose $0.01 per share or break even, the company said. Earlier, the company had said it expected a loss of $0.01 or a gain of $0.01 in the period. That compares with a gain of $0.35 per share in the same quarter last year.