| Handspring Reports Wider Loss |
| Written by Benjamin A. Hunter | |
| Tuesday, 16 April 2002 | |
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By MAY WONG Excluding amortization of deferred stock compensation and other items, the company reported a pro forma loss of $19.2 million, or 14 cents per share. Analysts surveyed by Thomson Financial/First Call were expecting a loss of 12 cents per share on revenue of $64.6 million. Before the financial report, Handspring shares were up 37 cents, or 11 percent, to close at $3.72 on the Nasdaq Stock Market, but they fell 85 cents, or nearly 23 percent, in extended trading. It was the second consecutive quarter the company missed Wall Street expectations, and the outlook for the current quarter did not appear any brighter, though company officials said they remain confident Handspring will reach profitability in the December quarter. The company lowered its revenue target for its fiscal fourth quarter, saying it will range from $47 million to $57 million. Wall Street analysts were expecting sales of $88.1 million, according to First Call. Handspring, the No. 2 maker of personal digital assistants after Palm Inc., has been faced with slow sales since last year. At the same time, the company is in transition, moving its product focus from handheld computer organizers to what it calls communicator devices that combine data and cell phone features. The company introduced its first combination PDA-cell phone — the Treo — in Europe in January and has since started shipping also in Asia and the United States. The company said it has so far sold 47,000 Treo units, slightly exceeding internal expectations. The company is banking on those early buyers — and their word-of-mouth advertising — to help Handspring become the No. 1 provider in the emerging market. Handspring has already signed deals with 12 wireless carriers — a significant feat for a newcomer in the cellular world, said Donna Dubinsky, Handspring's chief executive. The company has plenty of challenges ahead, but analysts say Handspring is better off by taking the leap toward a new kind of integrated communications device. ``It is time to get rid of the dog and focus more exclusively on the next-generation product that has a lot of excitement about it, and the Treo is the flagship product in that market,'' said Rob Sanderson, analyst with Banc of America Securities. Unfortunately, the traditional PDA market, which still makes up the bulk of Handspring's revenue, remains sluggish in the meantime, he said. ——— On the Net: http://www.handspring.com |
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| Last Updated ( Tuesday, 16 April 2002 ) |
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