Palm Inc. has lowered its outlook for the fourth quarter of the fiscal. Palm released its third quarter results late Thursday. The California based company reported narrower loss in the third quarter ended February 28.

Palm said it expects the revenue for the fourth quarter below the market expectations. The shares of the company slipped 14% on Thursday closing.

Palm Inc. reported a net loss of $22 million or 13 cents per share, much lower while compared with a net loss of $98 million or 89 cents per share reported in the same quarter last year. Revenue in the third quarter was reported of$349.9 million, increasing by nearly 400% while in the third quarter of last fiscal it was posted of $90.6 million. Revenue figures in the third quarter surpassed Palm's own guidance as the company expected the third quarter revenue in the range of$300 million to $320 million.

In the third quarter, Palm reported an adjusted loss of 61 cents a share missing the expectations of the market analysts. They estimated a loss of 42 cents a share for third quarter.

However, Palm has lowered its outlook for the fourth quarter. The company said that it is now expecting the fourth quarter revenue would be less than $150 million. The market analysts estimated the fourth quarter revenue of $305.8 million.