Handspring Reports Fourth Quarter Results

Posted By: Ryan Tuesday, July 22, 2003 4:07:42 PM

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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Bua hahaha.......

Mushu Pork @ 7/22/2003 4:25:56 PM #

Good riddance to Handspring. I was a big fan. Loved the springboard slot, bought several springboard items, memory cards, GPS units, etc. Now have a Tungsten T and a big pile of useless springboards as Handspring has decided that after all the R and D and all the marketing to build the user base, they would just dump it all. Hope their returns continue to sink. Miscreants who treat the people who banked on them badly. Glad to see their last quarter before being swallowed like an appetizer, by Palm, was such a glowing failure. Couldn't happen to a better group of people.

RE: Bua hahaha.......

4s @ 7/22/2003 4:51:30 PM #

Yeah. HAHA. People having misfortunes. How hilarious. Oh the horrid and unspeakable tragedy of your Springboards.

You are right! They deserve to suffer for making you go through this unspeakable injustice. We should all write Amnesty International on your behalf, you poor prisoner of Handspring. Off with their heads!

Oh the humanity.

<><

RE: Bua hahaha.......

kevdo @ 7/22/2003 5:21:42 PM #

>Handspring has decided that after all the R and D and all the marketing
>to build the user base, they would just dump it all.

Actually, Handspring didn't decide that -- the market did. I am sure that if everyone in world was buying Visors and a million modules that they wouldn't have dumped it.

> Couldn't happen to a better group of people.

Actually, the Handspring people deserve better than this. It's true the Springboard module is too big for today's market but if you go back to their founding there was nothing else like it out there. They deserve a lot of credit for trying something new and for showing what could be done with this sort of expansion.

Again, it isn't all their fault their (albiet proprietary) standard didn't take off. Same for Handera and dozens of others who tried something new that either didn't take off or didn't until after the company died.

Just be glad they're being absorbed into Palm who knows how to make a good Palm OS device rather than, say, Sony...

-Kevin Crossman

RE: Bua hahaha.......

Palmary @ 7/22/2003 7:10:48 PM #

You need to brush up on Capitalism 101. Handspring tried something new and interesting. The market didn't adopt the technology in numbers great enough to sustain the business. The business failed. It happens.

Handspring didn't maim anyone, club baby seals or defoliate the Amazon. Well, not that I'm aware of.

On the other hand, you got a neat PDA, some accessories, and it (presumably) continues to do what the device promised to do the day you bought it.

Now I've got this Ming vase and apparently the bloody dynasty ain't around anymore...

RE: Bua hahaha.......

sandbuck @ 7/22/2003 10:54:22 PM #

>> swallowed like an appetizer, by Palm
Hilarious!

Treospotting

mikecane @ 7/22/2003 5:52:37 PM #

Walking the streets of NYC, I can say that I have actually seen people with Treos (one even bragged about being able to get the net on it) -- and that's *plural*.

In all this time, I've seen only *one* person with a PPC -- and that was an Audiovox Maestro on the subway.

Most people I see are using Palm-brand PDAs and the rare CLIE.

RE: Treospotting

rtgwbmsr @ 7/23/2003 12:01:42 PM #

I'm also in NYC and I agree with this completely. I've seen a bunch of Zires & Zire 71's, a bucketload of Treos and Tungstens, and only two Pocket PCs: an old B&W iPaq (on the subway - how interesting), and a guy with a PPC phone.

RE: Treospotting

chromaticb @ 7/23/2003 9:37:13 PM #

It's simple PPC users just might not be the subway rider crowd, just like how you spot a lot less times reader compared to post reader in afternoon rush hour.

The Osbourne Effect?

JonAcheson @ 7/23/2003 12:18:57 PM #

Osbourne as in Osbourne computers, who had a big success with their first computer, the Osbourne 1, and then announced that in 6 months they'd be releasing the significantly better Osbourne 2. Their customers all said, "Wow, that sounds great! I'll wait to buy that!" and they went out of business before they could get the model 2 to market.

(OTOH, if you're the 800 lb. gorilla, you can use the announcement of your new product to FUD everything on the market now, like Sony did with the PS2.)

"All opinions posted are my own, and not those of my employers, who are appalled."