(RTTNews) - Palm (PALM) dropped in pre-market trading, after announcing its second quarter revenue expectations.

The stock was down 42 cents just after 8:25 am ET, declining to $1.46. If pre-market losses hold, the stock will open at a new low.

Palm said Monday that it expects to record second quarter revenues in the range of $190 million to $195 million.

Analysts polled by First Call / Thomson Financial currently expect the company post revenue of $330.77 million for the second quarter.

The company said the revenue decline compared to the previous quarter and the year-ago second quarter is a result of reduced demand for maturing smartphone and handheld products.

The company also said it is currently implementing several cost-savings initiatives, including reducing its U.S. work force, consolidating its European operations, and shifting responsibility for Asia Pacific sales, marketing and administrative support to its U.S. offices.

The company expects that by the fourth quarter of fiscal year 2009, these actions and other cost-savings initiatives will reduce quarterly operating expenses by about $20 million compared to fiscal year 2009 first quarter levels.

The company said it expects to record restructuring charges of $7 million to $9 million in the second quarter.

Additionally, Palm said it expects its second quarter gross margin to be between 18% and 19%, after accounting for the impact of a charge for inventory component purchase commitments.

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