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Handspring Fis. Q3 Sales Drop 52%

4/16/2002 09:04:00 AM Eastern

MOUNTAIN VIEW, CALIF. - Personal digital assistant maker Handspring continues to face slowing sales, reporting a 52 percent drop in its fiscal third quarter, to $59.7 million, compared with $123.8 million in the year-ago period.

The company reported a 15 percent drop in sales, compared with the previous quarter, when it registered $70.5 million in revenue for the three months.

Handspring lost $23.7 million in its fiscal third quarter, compared with a loss of $27.2 million in the same three months in 2001. Excluding amortization of deferred stock compensation and other items, the company reported a pro forma loss of $19.2 million in its fiscal third quarter, ended March 30.

Handspring said it continues to experience weakness in its handheld computer organizer business, where it runs a distant second to Palm, but is pleased with its entry into the communicator market, a device that combines data and cell phone features.

Handspring, which does not foresee a major turnaround in its current fiscal quarter, said it expects to be profitable by the December quarter.

The company also lowered expectations for its fiscal fourth quarter, and now is looking for a revenue range of $47 million to $57 million for the three months.