MOUNTAIN VIEW, Calif.-Treo maker Handspring Inc. reported a dismal quarter, with sales of its unique personal digital assistant/mobile phone failing to meet company hopes.
However, the company hinted at a major new product announcement, and reported a new deal with European operator Orange to develop a new smart phone. Handspring said it would work with Orange to develop specialized smart phone devices for businesses and consumers.
Handspring said its revenues for the quarter clocked in at $30.8 million, down from the $47.8 million in the previous quarter. The company’s net loss was $90.4 million, way up from the net loss of $12.3 million it reported in the previous quarter. The company blamed much of the loss on a lease restructuring.
The company’s cash and short-term investments totaled $53.2 million, and it reported 180,000 Treo customers.
The company’s stock was down about 10 percent to 66 cents per share after the news.
“The near-term outlook will be challenging due to a weak economic environment and lower-than-expected sell-in of current products for the coming quarter,” said Donna Dubinsky, Handspring’s chief executive officer.
The company said in the coming quarter it expects to report even lower revenues as it prepares for a new product launch. The company said it is pursuing additional financing.
