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RealTime IT News

Handspring Sales Plummet 13%

Handspring Inc., which just two days ago wowed the public with its new Treo line of phone/personal digital assistant gadgets, Wednesday said sales slumped 13 percent to $61.4 million in its 2002 first quarter compared with a year ago.

The Mountain View, Calif.-based firm reported a fully diluted earnings per share of 22 cents without amortization.

Handspring, along with Palm Inc. and other handheld makers enjoyed far better quarters going into the holiday season last year; not this time around, as more and more firms are feeling the whiplash of the lagging economy. In September, Palm reported that its sales plunged 47 percent, to $214.3 million, from the $401 million reported during the same quarter a year ago.

"I am pleased that we were able to meet our revenue and expense targets for the quarter in spite of a very challenging environment," said Handspring CEO Donna Dubinsky.

While its sales may not be what Handspring is used to from years past, its product line remains steady and strong. Handspring is banking on its new Visor line products (Neo and Pro), as well the new Treo line, which combines a GSM phone and PDA capabilities in a single device, to help during the holiday season.