MOUNTAIN VIEW, Calif.-Treo maker Handspring Inc. reported a dreary quarter, with revenues coming in far below some analyst expectations and warnings of further problems in the coming months.
Investors cringed at the news, sending the company’s stock down almost 15 percent to about 95 cents per share.
Sales of the company’s Treo mobile phone/personal digital assistant failed to spark a rise in the company’s revenues. Handspring has put much of its hopes behind the Treo device, but faces stiff challenges in a still-unproven product category along with competition from giants like Nokia Corp. and Samsung Electronics.
Handspring’s revenue for its second quarter clocked in at $48 million, down from the $70 million the company earned in the same quarter last year. However, the company said it restructured its lease agreements on two buildings the company no longer plans to occupy, a move Handspring said will substantially reduce its previous lease obligations of $350 million over 12 years.
“We were pleased to add more than 50,000 new Treo end users this past quarter,” said Donna Dubinsky, the company’s chief executive officer. “This growing acceptance gives us confidence in our long term success.”
Research firm BMO Nesbitt Burns maintained a cautious outlook on the company, lowering its revenue expectations for the coming quarters but holding its Market Perform rating.
