Palm posts loss, delays new OS

Palm's recently revealed financial results have brought into focus just how much the company are struggling in an increasingly competitive market.

In the 3 months up to the end of August, Palm has stated it made a loss of $841,000, despite overall revenue of $360.8 million.

This news came as Palm CEO, Ed Colligan, revealed that the new in-house Palm OS, which will be the company's first major software release since the Palm OS 5 in 2002, has been further delayed.

The new schedule for the Linux-based operating system is now the end of 2008.

Despite issuing a forecast that sees further loss this year, Colligan moved to reassure press and investors that the future for the company was bright, citing the recent deal with Elevation Partners.

Elevation Partners bought a 25% share of the company in a move that will see former Apple iPod engineer Jon Rubinstein, become executive chairman of Palm.