Palm posted a quarterly loss of $31.5 million or 30 cents a share for its third fiscal quarter, which ended Feb. 29, compared with a profit of $11.8 million, or 11 cents a share, for the same quarter a year earlier. Revenue also fell to $312.1 million from $410.5 million year-over-year. Despite losses, Palm was close to previously stated expectations; in December, the company forecast Q3 revenue of $310 million to $320 million.

Palm also reported that its entry-level smartphone, the Centro, has been a huge success; the company sold about 833,000 during Q3. Palm also reported that 70% of Centro buyers are trading up to standard handsets. The company plans to refresh its product line aimed at enterprise users early next year and should have a new line of Windows Mobile smartphones coming out this summer.

CEO Ed Colligan reportedly said in a conference call with investors that he expects the success of the Centro and its refresehed product lines to help the company see a “shift back to higher margins and a return to profitability.”

Excluding restructuring charges and other 1-time items, the company said it had a loss of $17.0 million, or 16 cents a share.