Palm Inc.'s shares fell Friday after the Treo and Centro smart phone maker reported fiscal fourth-quarter results that missed Wall Street expectations and indicated losses will continue in the current quarter.

Palm shares fell 66 cents, or 10.1 percent, to $5.88. The stock fell 4.4 percent a day earlier to close at $6.54 before Palm issued its quarterly results.

Late Thursday, Palm said it swung to a fourth-quarter loss and revenue fell year over year, though it sold a record number of smart phones - 968,000 - during the period. The company's adjusted loss was larger and revenue lower than what analysts expected.

Palm said sales of its low-price, low-margin Centro smart phone are strong but are being offset by slowing sales of higher-margin Treo devices.

Chief Executive Ed Colligan indicated on Thursday that he expects revenue to grow sequentially in the first quarter but losses to continue.

In a note to investors, Deutsche Bank analyst Jonathan Goldberg maintained his "Sell" rating and $4 price target for the stock, saying he expects delays in the release of upcoming products.

While Palm has not announced official dates of new product releases, Colligan said in the company's quarterly conference call Thursday that the company expects to refresh its Windows mobile product line soon and "continue to expand (Palm's) product offerings into the fall time frame."

The analyst thinks Palm is "working hard" on new software and handsets, but believes its "design expertise will be challenged by execution difficulties and tough competition."

Rival Research In Motion Ltd. is set to release a new BlackBerry device, the Bold, this summer. Apple Inc. is releasing an updated iPhone in July, along with software that lets the device work with Microsoft Corp.'s Exchange software, which is frequently used by businesses for handling and securing e-mail.

Meanwhile, Morgan Keegan & Co. analyst Tavis McCourt took a more upbeat approach than most, saying in a client note that Palm "appears to have reached an inflection point" and he expects new products to drive sequential sales growth in upcoming quarters.

"The trajectory of the growth will depend on the success of new product launches, but the direction has finally turned," said Mccourt, who also reiterated his "Outperform" rating for Palm's stock.

Palm spokesman Lynn Fox provided had no further comment beyond the company's quarterly conference call.