Handspring Announces Weak Revenues
Handspring, Inc. has just announced that it had $61.0 million in revenue for the fourth quarter of its fiscal 2001. Compared with same period last year, this is an increase of 18%. But compared with its previous quarter, revenue was down about 50%.
The company posted a pro forma loss, excluding special items, of $32.4 million, or 29 cents a share. Analysts had predicted a per-share loss of 32 cents. This doesn't include charges from excess and obsolete inventory of $26.8 million and other costs of of $7.9 million.
Handspring has been dealing with both greatly decreased demand for its handhelds because of the slowing economy and a price war with Palm Inc., its largest rival. Palm had a glut of devices this quarter and cut prices to stimulate sales. Handspring had to follow suit in order to remain competitive, which cut into their revenues.
As if that weren't enough, Palm's new m505 brought about a surge in sales, which cut into Handspring's market share. According to NPD Intelect, Handspring's market share fell from 19.2% in April to 15.3% in May, while Palm jumped from 62.1% to 69.4%.
"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.
She went on to say, "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.'' This includes plans to lay off 40 employees, or 9% of the company, a delay in facilities expansion, and elimination of some marketing programs.
Dubinsky concluded by saying, "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.''
In a related story, Handspring made current senior vice president of marketing and sales Ed Colligan chief operating officer, effective immediately.
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Get Real!
Seriously, they still have some life in them. Just give them a little time (they have enough cash to make it). Jeff and Crew are smart but they're not perfect (what a surprise!). If they could have forecast the changes that hit them they could've easily cornered the stock market as well.
I wish Handspring well. And Palm. There is a future here, they just have to work for it a little harder.
RE: Handspring Is Dead
RE: Handspring Is Dead
RE: Handspring Is Dead
This of course costs money, which will impact the bottom line in the short term but, if they come up with saleable solution, it will pay dividends.
The companies know what they need to improve:
Speed, memory, display, battery life, wireless access,
By doing so they should be able to provide us, the consumers, with low cost wireless terminals that respond to spoken commands, that offer brilliant colour, personal multimedia, location info, and can be used to pay for purchases...
I am convinced that the time will soon be here when the PDA in one form or another is as ubiquitous as the wrist watch... And hopefully Palm and Handspring will be there at the forefront leading sales.
For sure Handspring Is Dead
Get with it Handspring
RE: Get with it Handspring
RE: Get with it Handspring
AriB
Handspring ought to be dead
Handspring has nothing except springboard slots (yawn) and ugly also-ran handhelds. It doesn't have anything that can keep the company afloat should the bad economic times that are hitting everyone, not just Palm, continue on much longer.
RE: Handspring ought to be dead
Get off Palm OS back.
Palmmeister
RE: Handspring ought to be dead
Nick Trevethan
Devon
UK
RE: Handspring ought to be dead
AriB
Tought times
On the positive side there are some nice machines appearing. The handera with the High res screen and "hideable" Graffiti area is the wave of the future as is Sonys latest round of "Quadruple definition" screens that are now higher res than WinCE machines like the Compaq iPaq (320x320 vs 320x240).
Do not discount Uncle Bill with WinCE. Compaq has proved that despite the balls and chains associated with WinCE, nice machines can be produced, but running on 200+MHz machines you can guess the battery life.
The transition over the next 12-24 months is going to be fun for us all to watch. Will Handspring pull some real stunners out of a hat, will Palm adopt some of the other features that others are innovating (higher res screens, hideable Graffiti areas etc) and what will Handera and Sony do next to innovate this platform. With ARM based Palms around the corner, the Palm concept faces a real challenge. It must continue with it's ease of use, great battery life (that suffers a little in the m505) and thin footprint. At the same time it must fend off the temptation to add bells and whistles that only a few vocal techies (like myeself!) want but the masses don't give two hoots about. Keep the cost of the platform down, ease of use up, whilst improving it's "speed of use" will insure it's continued success. Loading palm O/S devices to the point where it completes with WinCE devices head-on with the same lesser ease of use will likely doom Palm to failure simply as Microsoft has more staying power (dollars) than Palm....unless Sony buys Palm;-) Wireless must play a role in all new devices from all vendors or their products risk being obsolete.
So - all in all, yes a bad quarter, but exciting times for us users and watchers. Some intense (but fun) times for PDA vendors. I agree with some of the other statements that infer that if any Palm PDA vendor bites the dust, the best ideas innovated by that company will continue on in other vendors products. The challenge, as WinCE product vendors have seen is how do you get product differentiation. The advantage WinCE has is that Microsoft does not complete with it's customes in this space (MS does not make a PDA). Palm does. However, without the purse strings of someone like Bill Gates, a Palm O/S (only) Company will need significant investment from all interested parties or never make it past the concept stage (or if it does it is doomed to failure).
I hope my miscellaneous ramblings are of interest. Remember, only the strong survive, and if there are some casualties on the way, it will be for good reasons and we will only benefit as users, unless Microsoft kills Palm (which is trying not to - thanks to the continuing legal issues).
regards
Neil (m505 user, ex-WinCE user, eager for the future).
RE: Tought times
RE: Tought times
Different lipstick . . . same pig.
;-D
C.
RE: Tought times
Grammar & Spelling
Thanks for allowing me to rant.
RE: Grammar & Spelling
are you an english teacher out monitoring web sites?? FREAK!!
RE: Grammar & Spelling
RE: Grammar & Spelling
RE: Grammar & Spelling
Get with some interesting topics or get lost losers!
Palmmeister
Suprised Handspring is still in the game.
like many people I thought it was a innovative product. But now it seems that Handspring has rested
on their past accoplishments (like Palm) & hoped that their core users would keep buying their product.
Seems now thats not the case. Sony & Handera has passed them by, releasing innovative devices
at reasonable prices. Why would you spend $350-$400 on a edge when you buy a CLIE 610 or a Handera 330?
I think Handspring needs to unveil something innovative quickly or they will be bought out or go under.
RE: Suprised Handspring is still in the game.
RE: Suprised Handspring is still in the game.
1: Ignore backwards compatibility and lose a large portion of legacy owners (ie. memplug)
2: Allow for backwards compatibility, making the product either more expensive or more complicated than it otherwise would have needed to be...
Really, how much more would a flashable OS have cost them? And how much better is an upgradable product compared to a non-upgradable one? Handsping seems to have a strange strategy...first they tout expandability and upgradability of function through springboards, then they go and limit it by using ROM instead of flash....
Bummer
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Handspring Is Dead
NOT!!!