Handset manufacturer Palm has updated its guidance this morning, indicating that revenues for the quarter and full year will be “well below its previously forecasted range of $1.6 billion to $1.8 billion”. The company expects that revenues for the third quarter of fiscal year 2010 will be in the range of $285 million to $310 million on a GAAP basis.

In a statement, Palm says disappointing sales are due to “slower than expected consumer adoption” of its products, resulting in lower than expected order volumes from carriers and the deferral of orders to future periods.

The company intends to provide more detail on its financial results during its third-quarter financial results conference call scheduled for March 18.

Since peaking in September 2009, at $17.75, Palm’s stock has fallen to less than half that, closing at $8.09 on Wednesday. Expect it to drop more today.

Palm chairman and CEO Jon Rubinstein is quoted as follows:

“Palm webOS is recognized as a groundbreaking platform that enables one of the best smartphone experiences available today, and our work to evolve the platform and bring industry-leading technology to market continues.

However, driving broad consumer adoption of Palm products is taking longer than we anticipated. Our carrier partners remain committed, and we are working closely with them to increase awareness and drive sales of our differentiated Palm products.”

Good luck with that.

How long until a bigger rival snaps up the company?

(Image via HandCellPhone)