Poor sales make Handspring sink lower – Alludes to new device

by Reads (2,345)

This afternoon Handspring posted a loss that was wider than analysts had expected as sales in the March quarter were less than half of those in the same quarter a year ago. For the three months ended March 30, the PDA maker said it lost $23.7 million, or 18 cents a share, on revenue of $59.7 million. In the same quarter last year, Handspring lost $27.2 million, or 26 cents per share, on revenue of 123.8 million.

“Although we continue to experience weakness in our organizer business, we are pleased with our entry into the communicator market,” Handspring CEO Donna Dubinsky said in a statement.

Even with the Treo meeting expectations, Handspring’s older units have been selling poorly prompting price cuts and special offers. With more integrated devices due out third quarter of this year from Toshiba, Sony and others, I’d be shocked to see Treo sales go anywhere but down. I’m no investment expert, but this is one stock I would not want in my portfolio right now

Handspring reps also alluded to a new device that will not be wireless due out this quarter, which ends in June. Perhaps a color replacement to the Prism? We’ll have to wait and see.

Brian

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