Handspring, Inc. today reported results for the third quarter of
fiscal 2003 ended March 29, 2003.
Revenue for the third quarter of fiscal 2003 was $30.8 million, down from
$47.8 million in the second quarter of fiscal 2003 and from $59.7 million in the
third quarter a year ago. Revenue for the quarter included $21.1 million in
communicator sales and $9.7 million in sales of organizers and accessories. On a
GAAP accounting basis, net loss for the period totaled $90.4 million, or $.62
per share as compared to a net loss of $12.3 million, or $.08 per share in the
prior quarter. Excluding charges for the Sunnyvale lease restructuring of $75.9
million and the amortization of deferred stock compensation of $1.7 million,
Handspring's non-GAAP net loss for the quarter was $12.8 million, or $.09 per
share as compared to a non-GAAP net loss of $10 million, or $.07 per share,
excluding amortization of deferred stock compensation of $2.3 million, in the
As of March 29, 2003, Handspring's unrestricted cash and short-term
investments totaled $53.2 million, down $12.5 million sequentially.
Handspring also said it has signed an agreement with Orange SA, one of the
world's largest communications companies, to work together to develop future
smartphones designed for the Orange network in Europe, with product shipments
expected to begin this fall.
"We've continued to grow our Treo installed base through a difficult quarter,
reaching 180,000 customers, while investing in a significant new product due
this fall," said Handspring CEO Donna Dubinsky. "The near-term outlook will be
challenging due to a weak economic environment and lower-than- expected sell-in
of current products for the coming quarter."
Highlights of the third quarter included:
- The launch of the Treo 270 in T-Mobile retail stores.
- A significant reduction of operating expenses due to the restructuring of
the Sunnyvale lease obligations.
- Treo communicator sell through for the quarter of approximately 39,000
worldwide. To date, total communicator sell through is approximately 180,000
- The Launch of Treo 270 with Brightstar Corp. throughout all of Latin America
(except Mexico and Brazil).
- A new developer program to fuel development of wireless, business and
consumer applications for the Treo communicator.
- GPRS availability for Cingular Treo customers that provides easy access to
corporate or internet e-mail.
FOURTH QUARTER FISCAL 2003 BUSINESS
OUTLOOK Handspring's business outlook will be affected by the following factors.
- Communicator revenue will be significantly lower as the company focuses on
reducing channel inventory in anticipation of a major new product launch.
- Organizer sales will be minimal going forward as inventory is depleted.
- The company expects to announce a new smartphone product with delivery
scheduled for the fall, as well as support for this product from major carriers
around the world.
- Expenses will decline as previous cost reducing activities are realized.
- Cash burn will increase due to a larger operating loss and the expected
timing of receivables.
- The company is pursuing additional financing.
More to come shortly...