Handspring suffers heavy drop in Q3 revenue

Blaming weakening demand for handheld devices, Handspring on Monday reported a larger loss than had been expected for the third quarter. The results come on the eve of Handspring releasing two new devices into the Australian market.

Handspring launched the Treo 180 and 180g PDAs (personal digital assistants) designed to combine the functions of a mobile phone and handheld computer with Web browsing and text messaging.

Revenue for the California-based PDA maker for the third quarter to March 31 was $US59.7 million, a steep drop from its reported revenue of $123.8 million for the same period last year, Handspring said in a statement.

International sales accounted for $11.5 million in revenue, or 19 per cent of the company's total this quarter, Handspring's chief financial officer, Bernard Whitney, said in a telephone news conference.

The company posted a net income loss of $23.7 million, or a loss of $0.18 per share for the quarter, Handspring said. That compares to a loss of $27.2 million, or $0.26 per share for the third quarter of 2001.

Donna Dubinsky, founder, president and CEO, said that Handspring remained confident that its Treo communicator product -- a combined mobile phone and PDA -- would help lead the company back to profitability.

Nonetheless, the company said it expected sales in the fourth quarter to be between $47 million and $57 million with a loss of $0.09 to $0.13 per share, due in part to "continued price pressure" on its Visor product line, Whitney said.

Handspring shipped 47,000 units of Treo in the quarter since debuting the product in February, though only about 13,000 have been sold to consumers, Dubinsky said.

"It is clear to us that the level of training required to sell this product is greater than that of our past products and the amount of time needed to communicate broadly to consumers will be longer than we had predicted,'' Dubinsky said.

In Australia, the Treo range will retail for $A1,39

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?