Palm Inc. revealed Thursday that its new line of smart phones aren't selling as expected, which will render its revenue at a fall what the technology company had forecast for the year.

The company posted that wireless carriers are ordering less than expected volumes of its phones and deferring orders to future periods.

However, the company didn't disclosed any details of order volumes or the possible hit to revenue for the fiscal year 2010, although it posted that its revenue would be nowhere near the expected $1.6 billion to $1.8 billion. Palm's shares dropped 20% in early trading.

Its shares registered a slip of 18 percent on Thursday after it claimed that it estimated quarterly revenue of $300 million to $320 million on a non-GAAP basis, well below the analysts' average speculation of $424.7 million, according to Thomson Reuters I/B/E/S.

"The Palm devices are an important component in our smart-phone lineup," Verizon spokeswoman Brenda Raney late Wednesday.

Palm predicts its third quarter revenue to lie in the bracket $285 million to $310 million, far below the $425 million analysts predicted, as polled by Thomson Reuters. The company reports its third-quarter earnings March 18.