MOUNTAIN VIEW, Calif.-No. 2 personal digital assistant maker Handspring Inc. reported fourth quarter earnings in line with company expectations but severely impacted by the slow economy, inventory problems and pricing wars.
Handspring also announced it would cut 9 percent of its work force-about 40 positions-and the company recorded a quarterly net loss almost triple the amount of a year ago. Handspring showed a net loss of $67.2 million for the quarter, ended June 30, compared with $19.5 million in the same quarter last year. The company’s pro forma net loss was $32.4 million, which excludes $26.8 million in excess and obsolete inventory charges.
Wall Street showed little reaction to Handspring’s news; the company’s stock continued a slow fall this week from about $6 per share to $4 per share. However, industry watchers in general maintained their outlook for the company. BMO Nesbitt Burns kept its “Market Perform” rating and Credit Suisse First Boston sustained its “Buy” rating.
Handspring executives said the company continues to do well, pointing to revenues of $61 million compared with $51.8 million during the same quarter last year.
