Palm expects to fail to meet its fourth-quarter revenue-target by some $60 million.

The company expects to lose money in the quarter, which ends today. Palm’s executives had expected revenue between $290 and $300 million in the quarter, which would meet the ‘break-even’ target.

However, product-demand has been weaker than expected for the past three months. This reflects weak sales for all kinds of handheld devices. The result is that Palm will fail to meet the target.

Yesterday, Palm claimed that the market share for all Palm OS handhelds remained steady in the US, and grew slightly worldwide during the period.

Palm executives still expect to report improved gross margins and expense-management, and a “good” cash position.