Handspring Announces Last Quarterly Results as Independent Company

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Handspring has reported results for its most recent financial quarter, which ended September 27. This was almost certainly its last full quarter before the company becomes a part of Palm.

Revenue for the quarter was $13.1 million, down substantially from $54.1 million in the same quarter a year ago. However, the company actually lost less money. Last quarter it has a GAAP loss of $13.9 million, while in the same quarter in 2002 its loss was $15.3 million.

The big news for the company was it began shipping its Treo 600 smart phone to Sprint and Orange near the end of the quarter.

Revenue for the quarter included $10.5 million in communicator sales and $2.6 million in organizer and accessory sales and other revenue. Treo 600 production started late in the quarter, therefore limiting revenue for the period. Handspring ended the quarter with a backlog of orders.

Pending Merger

Palm Inc. announced in June it was going to acquire Handspring, which will hold a special stockholders meeting on October 28 to vote on the merger. This will be part of an almost complete reorganization of the two companies.

Palm Inc. is currently made up of two divisions: PalmSource, a subsidiary responsible for developing and licensing the Palm operating system, and the Palm Solutions Group, a business unit responsible for designing, making and marketing Palm-branded handhelds.

PalmSource will be spun off as a separate company later this year. Handspring will merge with the remaining part of Palm. This company will go by the name palmOne, and will continue to develop the Treo line.

“We are pleased with the progress of our integration planning for Handspring’s merger with the Palm Solutions Group of Palm, Inc.,” said Donna Dubinsky, chief executive officer of Handspring. “We believe that the combined company, under the palmOne name, will continue to be a global leader in mobile computing.”

The merger is expected to happen on October 28.

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