Handspring sales meet lowered expectations

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Handspring sales meet lowered expectations
By Richard Shim
Special to CNET News.com
July 18, 2001, 1:40 p.m. PT
Handheld maker Handspring on Wednesday reported a loss that narrowly beat estimates, while its sales met lowered expectations.

The company also said it is laying off 40 employees, or 9 percent of the company’s work force.

Excluding charges, Handspring posted a loss of $32.4 million, or 29 cents per share, for its fourth quarter ended June 30. In the same quarter a year ago, the company reported a loss of $5.8 million, or 13 cents per share.

A consensus of analysts expected a loss of 32 cents per share, according to a survey by First Call.

In early June, the company lowered its sales estimates for the fourth quarter. It roughly halved its earlier prediction of $121.3 million in revenue, saying it would instead bring in $60 million and $65 million.

Revenue for the quarter came in at $61 million, about 18 percent above revenue of $51.8 million in the same quarter last year.

Including special charges, Handspring’s net loss for the fourth quarter was $67.2 million, compared with a $19.5 million loss in the same period last year.

“We have adjusted to the rapid economic downturn and have taken steps to reduce our rate of spending while continuing our investment in future products,” Handspring Chief Executive Donna Dubinsky said in a statement.

In addition to the layoffs, those reductions include postponing facility expansion.

The company also announced the promotion of Ed Colligan from senior vice president of marketing and sales to chief operating officer. Colligan, one of the founding members of the company, will be responsible for engineering, manufacturing and customer service, in addition to marketing and sales.

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