Palm has already hinted at the prospect of a new operating system and smartphone at CES, but those hints became fact on Friday with a company report:

"We are on track to deliver a breakthrough new platform and products that will bring a truly differentiated smartphone experience to our customers and reestablish Palm as a leading innovator in the mobile industry”, said Ed Colligan, Palm president and chief executive officer, before admitting that the company is “working through an undeniably difficult period”.

Palm announced on Friday that smartphone sell-through for the quarter was 599,000 units, down 13 percent year over year and that smartphone revenue were $171 million, down 39 percent from the year-ago period.

Palm will announce the new device and OS at CES on Thursday 9 January hoping to reverse its ailing performance in 2008.

Pocket-lint will be attending the company's press conference bringing you all the latest as it happens live from CES in Las Vegas.