SAN FRANCISCO (MarketWatch) -- Palm Inc. said late Monday that it expects fiscal second-quarter revenue to drop from the year-ago period, and seeks to cut costs over the rest of the fiscal year. Palm said it expects second-quarter revenue of $190 million to $195 million, well below $349.6 million a year ago, because of "reduced demand for maturing smartphone and handheld products." The company also said it seeks to reduce operating expenses by 20% by the fiscal fourth quarter through U.S. job cuts, consolidating European operations, and shifting responsibility for Asia Pacific sales to U.S. offices.

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