Handspring Finishes Up Rough Quarter
Handspring has just announced the results from its most recent financial quarter. Citing weak sales of its Visor line of handhelds, the company had a net loss of $19.2 million, or 18 cents a share. Handspring's revenues were $59.7 million, down 15% from the previous quarter and down 52% from the same quarter last year.
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 had been predicting a pro forma loss of 12 cents a share.
Last quarter, the company had a net loss of $19.8 million, or 16 cents a share. It reported revenues of $70.5 million. During the same quarter last year, the company lost 26 cents per share.
The company's ending cash and investments balance was $159.4 million, of which $108.7 million was unrestricted. At the end of the previous quarter, it had $175.5 million, of which $124.8 million was unrestricted.
While it is true that the winter months are traditionally weak for handheld sales, Handspring's quarter has to have been hurt by the delay in the roll-out of the Treo line of smartphones, the company's flagship product. A parts shortage early this year delayed the product's release in the U.S. for at least a month.
It shipped 47 thousand Treos to retailers during this quarter but said that sales to consumers have been smaller than hoped.
"We are seeing sell-through at a lower rate than we had predicted,'' Ms. Dubinsky said this afternoon. The company plans to increase its marketing efforts.
During a conference call with analysts in January, Ms. Dubinsky said her company would hereafter be concentrating on the Treo, with the Visor line of standard handhelds getting less attention.
Back in January, Ms. Dubinsky predicted that the company would be profitable by this current quarter, which ends in June. Today, she said that is no longer likely to happen. Instead, she expects her company to lose between 9 and 13 cents a share this quarter. She said they now expect to be profitable by the end of the year.
After closing the day up 11% to $3.72, Handspring's share price dropped 15% to $3.19 in after hours trading.
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