Handspring Reports Fourth Quarter Results
Handspring, Inc. today reported results for the fourth quarter of fiscal 2003 ended June 28, 2003. Revenue for the fourth quarter of fiscal 2003 was $14.5 million, down from $30.8 million in the third quarter of fiscal 2003 and from $49.0 million in the fourth quarter a year ago. Revenue for the quarter included $10.3 million in communicator sales and $4.2 million in sales of organizers and accessories.
On a GAAP accounting basis, net loss for the period totaled $13.0 million, or $0.09 per share as compared to a net loss of $90.4 million, or $0.62 per share in the prior quarter, which included charges for the Sunnyvale lease restructuring of $75.9 million. Excluding the amortization of deferred stock compensation and impairment of intangible assets of $1.5 million, Handspring's non-GAAP net loss for the quarter was $11.5 million, or $0.08 per share as compared to a non-GAAP net loss of $12.8 million, or $0.09 per share in the prior quarter, excluding amortization of deferred stock compensation of $1.7 million and charges for the Sunnyvale lease restructuring of $75.9 million.
As of June 28, 2003, Handspring's unrestricted cash and short-term investments totaled $36.9 million, down $16.3 million sequentially.
For the fiscal year 2003, Handspring's total revenue was $147.3 million, down from $240.7 million in fiscal 2002. On a GAAP accounting basis and including the Sunnyvale lease restructuring, Handspring's fiscal year loss was $131.1 million, or $0.91 per share, compared to a loss of $91.6 million, or $0.71 per share, in fiscal 2002. On a non-GAAP basis excluding the amortization of deferred stock compensation and impairment of intangible assets of $8.5 million and charges for the Sunnyvale lease restructuring of $75.9 million, Handspring's fiscal year net loss was $46.6 million, or $0.32 per share, compared to a net loss of $71.4 million, or $0.56 per share in the prior year, excluding amortization of deferred stock compensation and intangible assets of $20.2 million.
During the quarter, Handspring announced that the boards of directors of Palm, Inc. and Handspring, Inc. unanimously approved a definitive agreement for Palm to acquire Handspring to form a new, stronger market leader in mobile computing and communications. The two companies anticipate the transaction to close in the fall. Handspring also introduced the design for its new smartphone family, the Treo 600 series, which is expected to ship this fall worldwide.
"Our fiscal Q4 was a watershed quarter for Handspring, with two significant strategic announcements: the Palm merger and the Treo 600 introduction. We also took steps to reduce carrier inventory and manage down operating expenses while conserving cash in preparation for the introduction of the Treo 600 this fall," said Donna Dubinsky, chief executive officer. "We believe that by combining Palm's leadership position in handhelds with Handspring's breakthrough Treo product family, we are well positioned for future leadership in mobile computing and communications."
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