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Handspring Press Release Archive
HANDSPRING POSTS Q4 REVENUE OF $61.0 MILLION; FISCAL 2001 REVENUE OF $370.9 MILLION
MOUNTAIN VIEW, CALIF. (July 18, 2001) - Handspring, Inc. (NASDAQ: HAND) today announced revenue of $61.0 million for the fourth quarter of fiscal 2001 ended June 30th, 2001, compared with $51.8 million for the same period last year, an increase of 18%. For the fiscal year 2001, revenue was $370.9 million, compared to $101.9 million last year, an increase of 264%.
"While this quarter has been a challenging one for Handspring, I am pleased with the tremendous accomplishments of the company during the fiscal year," said Handspring CEO Donna Dubinsky. "We have solidified our position as leading innovators in handheld computing with a strong number two position in a relatively short time. 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."
Pro forma net loss was $32.4 million for the quarter. Pro forma net loss excludes the effects of excess and obsolete inventory charges of $26.8 million and amortization of deferred stock compensation and intangibles of $7.9 million. Pro forma total operating expenses were $44.5 million, or 73% of revenue compared to $22.1 million for the same period last year and $46.1 million in Q3.
Actual net loss for the fourth quarter of fiscal 2001 was $67.2 million compared with a net loss of $19.5 million for the same period last year.
Pro forma net loss for fiscal 2001 was $54.1 million compared to a pro forma net loss of $20.2 for fiscal 2000. Fiscal pro-forma net loss excludes the effects of amortization of deferred stock compensation and intangibles of $32.8 million, excess and obsolete inventories of $26.8 million and in-process research and development of $12.2 million.
Actual net loss for fiscal 2001 was $126.0 million compared to $60.3 million in fiscal 2000.
Highlights of the quarter include: expansion of Visor products and Springboard modules into Korea; new distribution channels in Canada through distributor partner HartCo; shipment of VisorPhone in Europe; and a new distribution partnership with Franklin Covey. In addition, the company added a new suite of wireless applications for messaging, e-mail and web browsing to VisorPhone, and shipped a new version of its Blazer web browser, featuring content powered by Microsoft's MSN and search capabilities provided by Google.
Handspring also continued to see momentum and acceptance of its Springboard platform in the developer community, with over 11,000 developers registered and over 55 modules available today. During the quarter several Springboard expansion modules shipped from third parties. These include the SpringPort Wireless Ethernet Module by Xircom (an Intel company), PocketChess Deluxe and Pocket Recipes by Pocket Express, Hagiwara Step Keeper, PalmGear 8mb and 16mb Flash modules, and Hagiwara Backup module.
In detailing its future business directions, Handspring laid out a plan to reduce expenses while continuing to invest in future wireless products. Expense reductions include a delay of interim facilities expansion, elimination of a variety of marketing programs, a reduction in workforce of about 40 employees or roughly 9%, and an aggressive cost cutting effort across all departments.
Dubinsky added, "In structuring our business going forward, we have three key goals: ensure that our traditional handheld products are profitable by the end of our second fiscal quarter, focus our future investment in our wireless communications products and services, and reach profitability for the business overall by fiscal year-end 2002."
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 Wednesday, July 18th, 2001, and archived through Wednesday, August 1st, 2001. The audio replay of the company's Q4 conference call can be accessed via telephone after 4:30 p.m. PST Wednesday, July 18th, 2001 until 4:30 p.m. PST Wednesday, August 1st, 2001 by calling (858) 587-5842 and entering the reservation number 19184425.
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, 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, Japan/Asia Pacific, 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: Handspring's ability to reduce spending while continuing to invest in future wireless products; and Handspring's three key goals of ensuring that its traditional handheld products are profitable by the end of its second fiscal quarter, focusing future investment on wireless communication products and services, and reaching profitability by the end of the 2002 fiscal year. Actual results may differ materially due to a number of factors including, among others: Future economic conditions; the rate of growth in the handheld computer industry; demand for Handspring's existing products, particularly Visor Edge; Handspring's ability to develop and deliver innovative products by their anticipated delivery dates; customer acceptance of Handspring's new products, particularly those with wireless functionality; Handspring's ability to effectively manage and expand its reseller and distribution channels domestically and internationally; 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.
Contacts:
HANDSPRING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, July 1,
2001 2000
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 87,580 $ 196,548
Short-term investments 33,943 --
Accounts receivable, net 12,850 20,484
Prepaid expenses and other current
assets 19,473 1,776
Inventories 2,857 40
--------- ---------
Total current assets 156,703 218,848
Long-term investments 80,237 2,664
Property and equipment, net 15,041 8,280
Intangibles and other assets 1,254 680
--------- ---------
Total assets $ 253,235 $ 230,472
========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 37,881 $ 20,152
Accrued liabilities 70,152 16,034
--------- ---------
Total current liabilities 108,033 36,186
--------- ---------
Long-term liabilities -- 57
--------- ---------
Stockholders' equity:
Common stock 130 125
Additional paid-in capital 368,166 321,116
Deferred stock compensation (29,445) (58,268)
Accumulated other
comprehensive income (loss) 994 (64)
Accumulated deficit (194,643) (68,680)
--------- ---------
Total stockholders'
equity 145,202 194,229
--------- ---------
Total liabilities and
stockholders' equity $ 253,235 $ 230,472
========= =========
HANDSPRING, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(See pro forma adjustments listed in table below)
(In thousands, except per share amounts)
Three Months Ended Year Ended
June 30, July 1, June 30, July 1,
2001 2000 2001 2000
--------- --------- --------- ---------
(unaudited)
Revenue $ 60,990 $ 51,826 $ 370,943 $ 101,937
--------- --------- --------- ---------
Costs and operating
expenses:
Cost of revenue 53,293 35,750 265,500 69,921
Research and
development 6,817 3,548 23,603 10,281
Selling, general and
administrative 37,653 18,536 145,132 42,424
--------- --------- --------- ---------
Total costs and
operating
expenses 97,763 57,834 434,235 122,626
--------- --------- --------- ---------
Loss from operations (36,773) (6,008) (63,292) (20,689)
Interest and
other income, net 5,086 338 12,195 675
--------- --------- --------- ---------
Net loss before
taxes (31,687) (5,670) (51,097) (20,014)
Income tax
provision 750 200 3,000 200
--------- --------- --------- ---------
Net income
(loss) $ (32,437) $ (5,870) $ (54,097) $ (20,214)
========= ========= ========= =========
Basic and diluted
net loss
per share $ (0.29) $ (0.13) $ (0.52) $ (0.59)
========= ========= ========= =========
Shares used
in calculating
basic and diluted
net loss per share 111,400 44,966 103,896 34,015
========= ========= ========= =========
The pro forma amounts have been adjusted to eliminated the following:
Amortization
of deferred
stock
compensation
and intangibles $ 7,919 $ 13,657 $ 32,830 $ 40,077
In-process research
and development -- -- 12,225 --
Write-off of
excess and
obsolete
inventories 26,811 -- 26,811 --
--------- --------- --------- ---------
$ 34,730 $ 13,657 $ 71,866 $ 40,077
========= ========= ========= =========
HANDSPRING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Year Ended
June 30, July 1, June 30, July 1,
2001 2000 2001 2000
--------- --------- --------- ---------
(unaudited)
Revenue $ 60,990 $ 51,826 $ 370,943 $ 101,937
--------- --------- --------- ---------
Costs and operating
expenses:
Cost of revenue 53,293 35,750 265,500 69,921
Research and
development 6,817 3,548 23,603 10,281
Selling, general
and administrative 37,653 18,536 145,132 42,424
Write-off of excess
and obsolete
inventories 26,811 -- 26,811 --
In-process research
and development -- -- 12,225 --
Amortization of
deferred
stock compensation
and intangibles 7,919 13,657 32,830 40,077
--------- --------- --------- ---------
Total costs and
operating expenses 132,493 71,491 506,101 162,703
--------- --------- --------- ---------
Loss from operations (71,503) (19,665) (135,158) (60,766)
Interest and other
income, net 5,086 338 12,195 675
--------- --------- --------- ---------
Net loss
before taxes (66,417) (19,327) (122,963) (60,091)
Income
tax provision 750 200 3,000 200
--------- --------- --------- ---------
Net income (loss) $ (67,167) $ (19,527) $(125,963) $ (60,291)
========= ========= ========= =========
Basic and diluted
net loss per share $ (0.60) $ (0.43) $ (1.21) $ (1.77)
========= ========= ========= =========
Shares used
in calculating
basic and
diluted net loss
per share 111,400 44,966 103,896 34,015
========= ========= ========= =========
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