Palm races to right ship as loss widens despite Pre buzz

Palm (PALM), the onetime smart-phone pioneer now on the rocks, is racing against the clock as it burns through cash in a last-ditch effort to turn its business around. Despite positive buzz and strong sales of its Pre device, the company reported its ninth consecutive quarterly loss Thursday as revenue dropped a shocking 82 percent to a mere $68 million.

Still, the company beat Wall Street's paltry expectations, sending its shares higher initially in after-hours trading.

Former Apple iPod ace Jon Rubinstein, whom Elevation Partners brought in to right the firm, is literally scrambling to turn the company around before the money dries up. In a blatant attempt to raise cash, the company said it plans to issue 16 million shares of common stock.