Handspring Revenues Up Only Slightly

Handspring has just announced the results for its most recent quarter, which ended in September. In it, the first quarter of its 2002 fiscal year, the company's revenues were lower than expected but so were its losses. Revenues were at $61.4 million, a slight increase over the $61.0 in the previous quarter. Analysts had predicted sales of $67 million. While Handspring lost $26.2 million which works out to be 22 cents per share, analysts had predicted that the company would lose 26 cents a share.

"I am pleased that we were able to meet our revenue and expense targets for the quarter in spite of a very challenging environment,'' said Handspring CEO Donna Dubinsky.

In recent months, Handspring has been involved in a price war with Palm Inc. that has driven down the selling price of both companies' handhelds and reduced their revenues. In August, the average price for a Visor was $194, a 15.7% drop over the past year. Handspring's quarterly revenues have dropped 13% during that same time.

Handspring expects to take a loss during this current quarter of about 15 cents a share. It expects revenues to rise slightly. "Though the December quarter is typically a strong quarter for this industry, current economic, political and market issues demand we be conservative in our expectations,'' the company said in a prepared statement.

Despite current uncertainties, Ms. Dubinsky predicts her company will be profitable by the middle of 2002. The Treo will be a big part of this. "We are well positioned to be a leader in a vast new category and a major new generation of devices," she said.

Handspring is already the number two handheld maker with 19.5% of retail sales during August.

This announcement came after the close of the stock market. Handspring's stock had seen a resurgence recently after the announcement of the Treo line of wireless handhelds. Today, however, it lost 32 cents or about 11% of its value.

Thanks to Ravdeep for the reminder. -Ed

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Yankerkowski must GO !!!!

I.M. Anonymous @ 10/17/2001 5:51:33 PM #
Ho, Ho, Ho !!!
It ain't going to be pretty when PALM reports.

Yankerkowski must GO. Remember: this is the clown who did some accounting magic: lowered his bonus and jacked up his salary to net the same compensation of $667 !!!! While he was conducting creative accounting and helping out his bottomline (and stomach girth), he whacked employees left-and-right and forced survivors to take a pay cut.

RE: Yankerkowski must GO !!!!
rldunn @ 10/17/2001 6:07:23 PM #
You do realize this was an article about Handspring, right?

RE: YOU must GO !!!!
I.M. Anonymous @ 10/17/2001 6:33:04 PM #
Yo moron, Palm announced their quarterly result just a couple of weeks ago. Sales were up 30% You probably had your head so far up your *** you missed it.

RE: Yankerkowski must GO !!!!
I.M. Anonymous @ 10/17/2001 7:06:11 PM #
Hey, maybe the original poster was off by 3 weeks but the net is that Yankowski has to go. His lack of leadership and vision has really damaged PALM. And the ZEN OF PALM mantra is getting really old.

You must be an apologist for Yankowski and probably wipes his a** on demand.

RE: You must GO !!!!
I.M. Anonymous @ 10/17/2001 7:33:43 PM #
The fourth comment is *so* obviously from the same loser who posted the first one.

I hope Handspring can get back on its feet. The Treo looks great. If they can just keep going until GPRS kicks in they will have a real Blackberry killer.

RE: Yankerkowski must GO !!!!
I.M. Anonymous @ 10/17/2001 8:28:17 PM #
The price war might have a silver lining: keeping the price low should help with penetrating the enterprise market.

Has Palm run out of money?
I.M. Anonymous @ 10/20/2001 11:30:42 AM #
I just glanced at Palm's latest SEC filing and saw a number of loan documents. Have they now started borrowing money? Any lawyers her understand the SEC document?

RE: Yankerkowski must GO !!!!
I.M. Anonymous @ 10/20/2001 12:51:02 PM #
Palm is broke but Apple will save them.

Price War??

I.M. Anonymous @ 10/17/2001 7:30:13 PM #
That would be nice. Here in Australia there is no indication that Handspring wants to sell anything. As a comparison, the Visor Deluxe is sold for A$549 (with the M105 at A$349), and the Visor still advertised for up to A$385!! (with the M100 at A$249).

The Neo and Pro are no-where to be seen.

When Handspring dropped prices in the US there was no drop here, but Palm prices droped in Australia _before_ they did in the states!

I guess I'll just have to buy a new Palm...

When their next color device comes out...

skoty @ 10/17/2001 7:31:27 PM #
Anybody want to speculate on what will happen when Handspring's next color Visor comes out to replace the Prism? Of course it might only be "evolutionary" in nature (Like the Neo and Pro), and thus be a disappointment, or it might be revolutionary like the Treo and kick their stock up again.

The $100 cut in price to the Prism I think foreshadows a new color Visor on the horizon. They cut the prices of the Visor Solo, Deluxe and Platinum about a month before the Neo and Pro came out. If they come out with another dazzler in next couple of weeks, their stock might fly even higher. Let's say they produce a device with the form factor of the Edge, a 320x320 65,000 color screen, 16M of memory, and the usual improvements to software (DateBook+, Fast Lookup, etc.). Would their stock fly high off of that?

I sure wish I had invested in them on Monday of last week, I could have doubled my money.

RE: When their next color device comes out...
I.M. Anonymous @ 10/18/2001 6:14:30 PM #
Doubtful. They need to drop that half-assed springboard edge, and going with something a little more industry standard - like SD, or CF.

RE: When their next color device comes out...
skoty @ 10/18/2001 9:45:22 PM #
Actually, they already support CF... and SM... and Memory Sticks... and MMC. They don't support SD yet, but it's just around the corner. Pick your "industry standard", they support it. They also have GPS, MP3, Universal Remote, Voice Recorder, Cell Phone, and Pedometer for that lowsey Springboard slot.

If you want to debate expandability, start a new thread to talk about it (and throw your name in there while you're at it). I started this thread hoping to hear predictions/speculations about how Handspring's stock will perform when they come out with their next color Visor before christmas.



RE: When their next color device comes out...
I.M. Anonymous @ 10/20/2001 7:05:28 PM #

What's *lousy* about the Springboard is the size, the fact that it's too bulky, and not an industry standard.

There are lots of expansion options for the visor, but the expansion devices are so bulky no one is going to carry more than one or two with them.

It makes much more sense for Handspring to adopt industry standard expansion scheme (particularly one that's smaller in size).


Revenues were at $61.4 million????????

I.M. Anonymous @ 10/17/2001 8:25:01 PM #
Microsoft spends more than that each quarter just on buying TOILET PAPER for their employees to wipe their azzes!!! SHEEEESH!!!

RE: Revenues were at $61.4 million????????
I.M. Anonymous @ 10/17/2001 9:05:59 PM #
So why does Handspring alone have way more market share than all the PPC licensees combined? Microsoft has been trying for about 5 years. Why haven't they managed to beat a couple of small upstarts?

The trend is clear, Palm is screwed.
I.M. Anonymous @ 10/17/2001 9:35:35 PM #
Poor management can't turn this ship. OS5 if/when it happens will be a cluster**** OS. They are trying to slap this thing together at the last minute and rush it to market. OS5 will be a mess I predict.

RE: MicroTroll
I.M. Anonymous @ 10/17/2001 10:17:20 PM #
IDC, a major industry analyst, has predicted that the Palm OS will continue to dominate the handheld market through at least 2005. Pocket PC will have between 15 percent and 25 percent of the market this year. That''s pretty much what they have now, though its a lot closer to 15 percent.

They made this prediction even after looking at Pocket PC 2002 and the new handhelds that will be released using it. They appear to think that these won''t be enough to increase Microsoft''s share of the market and certainly not enough to overshadow the Palm OS for at least 4 more years.

IDC analyst Alex Slawsby says this is because corporations have been less aggressive in adopting handheld computers than predicted. Microsoft has done everything it could to make large corporations like their OS and they weren''t interested. This isn''t my opinion, it''s Slawsby''s.

That gives Palm Inc. at least 4 years, which is about 3 more that will be necessary to come out with OS 5 on ARM chips, which will negate even the percieved Pocket PC advantages. Ignore what the doomsayers and MicroSerfs say, the Palm OS will continue to dominate the handheld market through at least 2005.

p.s. Did I mention that the Palm OS will continue to dominate the handheld market through at least 2005?

OK - so go load up on PALM shares!!!
I.M. Anonymous @ 10/17/2001 11:11:15 PM #
Put your money where your mouth is. I'll buy MSFT.

RE: Revenues were at $61.4 million????????
skoty @ 10/17/2001 11:43:10 PM #
If you take a look at my other post, if I had bought HAND on Monday of last week, I could have doubled my money. When Pocket PC 2002 comes out do you know how much MSFT will quiver? Maybe a dollar. Know whay? Because only 8% of the PDA using communitiy even cares!

RE: MicroTroll
I.M. Anonymous @ 10/18/2001 1:36:21 AM #
Actually, PocketPC will crush Palm within two quarters. Trust me.

RE: Trust Who?
I.M. Anonymous @ 10/18/2001 7:20:28 AM #
Trust who? Which "ananoymus" guru are you??? Why in god's name would I "trust you"?

RE: Revenues were at $61.4 million????????
Coyote67 @ 10/18/2001 3:58:15 PM #
What BS, I've been hearing M$ will crush all handhelds since wince 1.0, get a life. Its nice you have loyality to a product, but don't get overboard.

OH my god...becky, look at her....Prism.


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