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Handspring Press Release Archive
HANDSPRING POSTS STRONG THIRD QUARTER REVENUES OF $123.8 MILLION, UP 261% FROM LAST YEAR
MOUNTAIN VIEW, CALIF. (April 12, 2001) - Handspring, Inc. (NASDAQ: HAND) today announced revenues of $123.8 million for the third quarter of fiscal year 2001 ended March 31, 2001. Quarterly revenues increased 261% compared to last year, and 7% over FYQ2 2001, reflecting strong demand for new products including the high-end Visor Platinum, Prism, and recently shipping Edge models. Continued expansion in the U.S. retail and reseller markets and new distribution channels in Italy, Australia and New Zealand also contributed to the strong quarter.
Donna Dubinsky, founder and CEO of Handspring, said, "We are pleased with the results of the quarter, particularly our ability to achieve revenue growth in what is usually a sequentially down quarter in our industry. We believe this growth demonstrates both acceptance of our new products as well as ongoing growth in the handheld computing sector in spite of an economic slowdown."
Handspring showed gross margins of 31.8% for the quarter, up from 31.4% the prior quarter. Excluding amortization of deferred stock compensation and intangibles and in-process research and development, Handspring reported a net loss of $6.7 million during Q3. Excluding these same costs, total operating expenses were $46.1 million, or 37.2% of revenue. Including amortization of deferred stock compensation and intangibles and charges of $12.2 million recorded for the Bluelark Systems acquisition, net loss for the quarter was $27.2 million.
Handspring achieved several significant milestones during the quarter, notably introducing and shipping Visor Edge, an innovative product that combines a thin form factor with full Springboard compatibility. The company expanded its domestic distribution to include an additional retail partner, Office Max. Handspring also opened a new distribution channel for the enterprise segment through an agreement with Ingram Micro. Through Ingram, qualified resellers can procure Visors and Springboard modules for targeted corporate markets. Additionally, Handspring partnered with D&H Distribution to help meet the needs of the education market. Internationally, Handspring extended its presence with distribution in Italy, Australia and New Zealand. Finally, the company announced service for VisorPhone on the Voicestream network, and, most recently, the availability of VisorPhone through retail partners.
Handspring also continued to see momentum of its Springboard expansion platform in the developer community, with over 10,000 developers registered and over 45 modules available today. During Q3, several new Springboard expansion modules shipped from third parties, including:
- Margi Presenter-To-Go
- Eyemodule2 Digital Camera designed by IDEO
- Magellan GPS Mapping Springboard
- Geodiscovery Geode GPS Module
- Card Access 56k Modem/Memory module
- Portable Innovation MemPlug Smart Media Adapter module
- Palmtop V-Rally module
- Hagiwara 8MB Flash Expansion module
- Hagiwara 16MB Flash Expansion module.
Handspring's earnings conference call will be webcast on its Web site at www.handspring.com, live at 2 p.m. PST (Pacific Standard Time) on Thursday, April 12, 2001, and archived through Friday, April 20th, 2001. The audio replay of the company's Q3 conference call can be accessed via telephone after 4 p.m. PST Thursday, April 12, 2001 until 4 p.m. PST Thursday, April 19, 2001 by calling (858) 812-6440 and entering the reservation number 18350973.
ABOUT HANDSPRING
Handspring is a leading innovator in the handheld computing industry. The company develops, manufactures and markets a family of expandable handheld computers for a broad range of markets and customers. Founded in 1998 by the creators of the world-leading Palm Computing platform, Handspring's flagship technology is the Springboard platform that provides a simple and easy method for hardware and software expansion. Today Handspring sells its Visor line of handheld computers, along with a line of Springboard expansion modules and accessories, at Handspring.com and through select Internet and retail partners in the United States, Asia, Canada, and Europe.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that involve risks and uncertainties, including those relating to: the continued success of Handspring's new products, including the Visor Platinum, Prism and Edge models; the ongoing growth in the handheld computing market in spite of an economic slow down; and the continued momentum of the Springboard platform with developers. Actual results may differ materially due to a number of factors including, among others: consumer and corporate demand for Handspring's new products, particularly Visor Edge which just began shipping; developments in the United States and the global economy; Handspring's ability to manage and expand its reseller and distribution channels domestically and internationally; the challenge of attracting and retaining Springboard developers given their need for a very large base of Visor users and the distribution channels to reach them; and the rapid pace of technological change and competitive developments in the handheld computer and wireless Internet industries. Reported results should not be considered as an indication of future performance. The matters discussed in this press release also involve risks and uncertainties described in Handspring's most recent Form 10-Q filed with the Securities and Exchange Commission. Handspring assumes no obligation to update the forward-looking information contained in this press release.
Handspring, the Handspring logo, Visor, VisorPhone, Visor Prism, Visor Edge, Visor Platinum, Bluelark and Springboard are trademarks of Handspring, Inc. and may be registered in certain jurisdictions. All other brand names are trademarks of their respective owners
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HANDSPRING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
March 31, April 1, March 31, April 1,
2001 2000 2001 2000
--------- --------- --------- ---------
Revenue $ 123,820 $ 34,321 $ 309,953 $ 50,111
--------- --------- --------- ---------
Costs and operating expenses:
Cost of revenue 84,416 23,349 212,207 34,171
Research and development 7,120 2,115 16,786 6,733
Selling, general and
administrative 38,950 13,512 107,479 23,888
In-process research
and development 12,225 -- 12,225 --
Amortization of deferred
stock compensation
and intangibles 8,336 16,997 24,911 26,420
--------- --------- --------- ---------
Total costs and
operating expenses 151,047 55,973 373,608 91,212
--------- --------- --------- ---------
Loss from operations (27,227) (21,652) (63,655) (41,101)
Interest and
other income, net 748 149 7,109 337
--------- --------- --------- ---------
Net loss before taxes (26,479) (21,503) (56,546) (40,764)
Income tax provision 750 -- 2,250 --
--------- --------- --------- ---------
Net income (loss) $ (27,229)$ (21,503)$ (58,796) $ (40,764)
========= ========= ========= =========
Basic and diluted
net loss per share $ (0.26)$ (0.61)$ (0.58) $ (1.34)
========= ========= ========= =========
Shares used in calculating
basic and diluted
net loss per share 106,702 35,391 101,402 30,403
========= ========= ========= =========
Pro forma net loss excluding
in-process research and
development and amortization
of deferred stock
compensation and intangibles$ (6,668) $ (4,506) $(21,660) $(14,344)
========= ========= ========= =========
Pro forma basic and diluted
net loss per share $ (0.06) $ (0.13) $ (0.21) $ (0.47)
========= ========= ========= =========
HANDSPRING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, July 1,
2001 2000
--------- ---------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 107,091 $ 196,548
Short-term investments 52,213 --
Accounts receivable, net 36,630 20,484
Prepaid expenses and other
current assets 12,939 1,776
Inventory 6,799 40
--------- ---------
Total current assets 215,672 218,848
Long-term investments 69,082 2,664
Property and equipment, net 14,812 8,280
Intangibles and other assets 1,355 680
--------- ---------
Total assets $ 300,921 $ 230,472
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 45,369 $ 20,152
Accrued liabilities 51,836 16,034
--------- ---------
Total current liabilities 97,205 36,186
--------- ---------
Long-term liabilities -- 57
--------- ---------
Stockholders' equity:
Common stock 130 125
Additional paid-in capital 367,761 321,116
Deferred stock compensation (37,312) (58,268)
Accumulated other comprehensive
income (loss) 613 (64)
Accumulated deficit (127,476) (68,680)
--------- ---------
Total stockholders'
equity 203,716 194,229
--------- ---------
Total liabilities and
stockholders' equity $ 300,921 $ 230,472
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