NEW YORK (CNN/Money) - Shares of PalmOne Inc. tumbled Tuesday after the hand-held computer maker warned that fiscal second-quarter results would be less than Wall Street expectations.

Its stock initially made a huge leap in after-hours trading Monday after the company posted a quarterly profit, reversing a year-earlier loss, on a 62 percent jump in revenue. But the disappointing forecast overshadowed the positive first-quarter numbers, sending PalmOne (PLMO: down $5.40 to $31.88, Research, Estimates) shares down as much as 15 percent.

Investors appeared to frown on the forecast for the second quarter, when the company said it expects a net profit of 46 cents a share, and 50 cents a share excluding special items. Analysts, on average, expect a profit of 58 cents, according to earnings tracker First Call.

It was the first time PalmOne has given guidance for the second quarter, and PalmOne chief executive Todd Bradley chose to focus more on the full-year outlook for the company when he appeared on CNNfn's Market Call.

"We really focus on how we drive the entire year," said Bradley. "We've increased our guidance overall for our fiscal year '05 from $1.27 billion to $1.31 billion."

The company said it now expects a net profit of $1.45-to-$1.60 a share. Analyst had forecast a profit of $1.53 a share on revenue of $1.29 billion, according to First Call.

Shares of PalmOne jumped more than 10 percent late Monday after the company reported first-quarter net income of $19.6 million, or 38 cents a share, in the quarter ended Aug. 27, compared with a net loss of $21.7 million, or 74 cents a share, a year earlier.

Excluding special items, the company posted a profit of 43 cents a share. Revenue rose to $273.1 million from $168.6 million.

Wall Street analysts, on average, expected a profit of 20 cents a share, on revenue of $269 million.

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In a company statement, Bradley attributed PalmOne's growth to an expected rise in demand for so called "smartphones" -- pocket-sized wireless devices that handle data, text and voice communications.

"(Telecommunications) carriers are increasing their commitment to this category and sell-through continues to grow," he said on a conference call, according to Reuters.  

-- from staff and wire reports