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Handspring Press Release Archive
HANDSPRING REPORTS THIRD QUARTER RESULTS
MOUNTAIN VIEW, CALIF. (April 15, 2002)- Handspring, Inc. (NASDAQ: HAND) today announced revenue of $59.7 million for its third quarter of fiscal 2002 ended March 30, 2002, down 15% from $70.5 million in the prior quarter ended December 29, 2001, and down 52% from $123.8 million in the third quarter of fiscal 2001.
"Although we continue to experience weakness in our organizer business, we are pleased with our entry into the communicator market. We started selling in volume our first communicator, the Handspring Treo, which has quickly been acknowledged as a leading product in this new category," said Handspring CEO Donna Dubinsky. "During this past quarter, we focused on establishing relationships with carriers around the world. We are very pleased with the results of that effort, and we have announced relationships with twelve carriers. Our launch of the Treo communicator will continue throughout this year as we introduce more products into the family, including a CDMA Treo that will be co-branded by Sprint PCS."
Excluding amortization of deferred stock compensation and intangibles, Handspring reported a net loss of $19.2 million during Q3. Excluding these costs, total operating expenses were $25.3 million, or 42% of revenue. Including amortization of deferred stock compensation and intangibles, net loss for the quarter was $23.7 million. The company's ending cash and investments balance was $159.4 million, of which $108.7 million was unrestricted.
Highlights of the third quarter include the following carrier developments:
- A distribution and marketing agreement with mm02, a leading provider of mobile communications services in Europe, including the UK, the Netherlands, Germany and Ireland.
- A co-development, co-branding and co-marketing agreement with Sprint PCS. The Sprint labeled CDMA Treo is expected to be available nationwide in mid-year of 2002.
- A distribution and marketing agreement with Cingular, the second largest U.S. wireless carrier. In addition, Cingular will license Handspring's Blazer web browser to access My Wireless Window, Cingular's wireless service for personalized web browsing, news, messages, and information alerts.
- A distribution and marketing agreement with Rogers AT&T, Canada's leading wireless communications service provider.
- Certification of Treo on the Voicestream network in the U.S.
- An initial purchase order for Treo from SFR in France.
- Certification of Treo by SmarTone, SingTel and Celcom in Hong Kong, Singapore and Malaysia, respectively, with product distribution to these carriers through GrandTech.
- Certification of Treo by Orange Switzerland, with product distribution to its stores through Comlight.
- Certification of Treo by Telia in Sweden, with product distributed to its stores through Axcom (previously named APE Telecom).
- Certification of Treo by Vodafone in New Zealand, with product distributed to its stores through Brightpoint.
Handspring also accomplished other key objectives during the quarter including:
- Launching Treo in a number of retail channels throughout the world with such partners as Best Buy, Staples, and CompUSA in the U.S., Radio Shack in Canada, Dixon's and Carphone Warehouse in the UK, FNAC in France, and Sing Tel Pod and Smartone in Asia/Hong Kong.
- Releasing a beta version of Treo Mail, Handspring's new wireless email service, that is available exclusively for Treo communicators. Treo Mail provides mobile, secure access to desktop email. Handspring expects to begin selling subscriptions for the commercial version of Treo Mail in mid-year of 2002.
- Establishing strategic marketing and sales relationship with ViAir, Inc. and Xcellenet, Inc. ViAir and Handspring will work jointly market the Treo family of communicators to wireless carriers throughout North America, Europe and Asia. Xcellenet and Handspring will focus on providing companies using Treo communicators and Visor handhelds with the ability to centrally manage their mobile assets.
Handspring's earnings conference call will be webcast on its web site at www.handspring.com, live at 2 p.m. PDT (Pacific Daylight Time) on Monday, April 15th , 2002, and archived through Thursday, April 25th , 2002. The audio replay of the company's Q3 conference call can be accessed via telephone after 4:30 p.m. PDT Monday, April 15th, 2002 until 4:30 p.m. PDT Thursday, April 25th, 2002 by calling (858) 812-6440 and entering the reservation number 20463322.
ABOUT HANDSPRING
Handspring is a leading innovator in personal communications and handheld computing. The company develops, manufactures and markets the Treo family of communicators, the Visor family of expandable handheld computers, and client and server software for fast web and e-mail access from handheld communication devices. Today Handspring sells its Treo family of wireless communicators, Visor line of handheld computers and various expansion modules and accessories at www.handspring.com and through select Internet, retail and carrier partners in the United States, Europe, Asia, Australia, New Zealand, Canada and the Middle East.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that involve risks and uncertainties, including those relating to: Handspring's ongoing launch plans for the Treo communicator; the expected commercial availability dates of new products and services including the CDMA version of Treo with Sprint and the commercial version of Treo Mail; the future distribution of Treo by Cingular on its website and in other distribution channels and Cingular's plan to utilize Blazer as its web content platform; and the anticipated joint marketing efforts for Treo with ViAir, Inc. and Xcellenet. Actual results may differ materially due to a number of factors including, among others: Handspring's ability to develop and deliver innovative wireless communicator products and to complete testing for those products with wireless carriers; the timing of the build-out of advanced wireless networks and the quality and scope of voice and data service coverage offered by wireless carriers; the degree to which wireless carriers will facilitate the successful introduction of Handspring's wireless products; our dependence on third parties, such as Wavecom, to supply components for Treo; our ability to accurately forecast future Treo demand; customer acceptance of Handspring's Treo communicator products; the rapid pace of technological change and competitive developments in the wireless communications industry. 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, except as otherwise required by applicable law.
Handspring, the Handspring logo, and Blazer are trademarks of Handspring, Inc. and may be registered in certain jurisdictions. All other brand names are trademarks of their respective owners.
HANDSPRING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
March 30, March 31, March 30, March 31,
2002 2001 2002 2001
--------- --------- --------- ---------
Revenue $ 59,715 $ 123,820 $ 191,641 $ 309,953
--------- --------- --------- ---------
Costs and operating
expenses:
Cost of revenue 54,241 84,416 168,934 212,207
Research
and development 6,340 7,120 19,318 16,786
Selling, general
and administrative 18,993 38,950 66,679 107,479
In-process
research and
development -- 12,225 -- 12,225
Amortization of
deferred stock
compensation and
intangibles 4,510 8,336 16,476 24,911
--------- --------- --------- ---------
Total costs and
operating
expenses 84,084 151,047 271,407 373,608
--------- --------- --------- ---------
Loss from operations (24,369) (27,227) (79,766) (63,655)
Interest and
other income, net 809 748 4,520 7,109
--------- --------- --------- ---------
Loss before taxes (23,560) (26,479) (75,246) (56,546)
Income tax provision 100 750 950 2,250
--------- --------- --------- ---------
Net income (loss) $ (23,660) $ (27,229) $ (76,196) $ (58,796)
========= ========= ========= =========
Basic and diluted
net loss per share $ (0.18) $ (0.26) $ (0.61) $ (0.58)
========= ========= ========= =========
Shares used in
calculating basic
and diluted
net loss per share 134,903 106,702 124,568 101,402
========= ========= ========= =========
Pro forma net loss
excluding in-process
research and development
and amortization of
deferred stock
compensation and
intangibles $ (19,150) $ (6,668) $ (59,720) $ (21,660)
========= ========= ========= =========
Pro forma basic and
diluted net
loss per share $ (0.14) $ (0.06) $ (0.48) $ (0.21)
========= ========= ========= =========
HANDSPRING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 30, 2002 June 30, 2001
--------- ---------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 93,563 $ 87,580
Short-term investments 9,186 33,943
Accounts receivable, net 25,631 12,850
Prepaid expenses and
other current assets 4,144 19,473
Inventories 7,416 2,857
--------- ---------
Total current assets 139,940 156,703
Long-term investments 56,635 80,237
Property and equipment, net 14,634 15,041
Intangibles and other assets 1,559 1,254
--------- ---------
Total assets $ 212,768 $ 253,235
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 26,903 $ 37,881
Accrued liabilities 51,185 70,152
--------- ---------
Total current liabilities 78,088 108,033
Stockholders' equity:
Common stock 143 130
Additional paid-in capital 419,030 368,166
Deferred stock compensation (13,122) (29,445)
Accumulated other
comprehensive income (loss) (532) 994
Accumulated deficit (270,839) (194,643)
--------- ---------
Total stockholders' equity 134,680 145,202
--------- ---------
Total liabilities and
stockholders' equity $ 212,768 $ 253,235
========= =========
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