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One of Motorola’s biggest competitor’s to its smart phone business declares a a $74 million loss! Will this help Motorola regains its sharehold in the mobile phone market?

 Fiercemobile writes: “Palm revised the warning it gave at the end of February which alerted investors to a $31.5 million loss: Now the company has recorded a $57 million loss for the company’s third quarter. The revised loss follows a $25 million write-down for auction-rate securities that lost value since the collapse of the debt market earlier this year. Palm said last week that it had sold a million Centros in the U.S. since it introduced it last September.” - Fierce Mobile

According to recent NY times article - “The handset maker Pam Inc said on Monday that it lost more in the third quarter than it initially reported because of a recent revaluation of securities affected by the tight credit market. The company reported a revised loss of $57 million, or 53 cents a share, in the three months ended in Feb. 28, rather than the $31.5 million that it reported last month, according to a securities filing. The company earned $11.8 million in the period a year earlier. The revised loss comes as a result of a $25 million write-down for auction-rate securities that have lost value since the collapse of that debt market in February. Auction-rate securities can have terms of up to 30 years, but the interest paid on them is reset at auctions periodically. The auctions held by large banks and other financial institutions for these securities recently have found few — if any — buyers. The $300 billion market is in trouble in part because the bond insurers that back them face downgrades by credit rating agencies.” - NY Times

So what does that mean for the cell phone giant? Does this give Motorola breathing room as it goes through its own restructuring and layoffs? Stayed tuned for more!