Handspring Sees Longer Road to Profit

Handspring Inc. reported a fiscal third-quarter loss as revenue fell by more than half, and pushed back by six months its goal for turning a profit, amid a bumpy roll-out of its newest phone-based devices and shrinking demand for its older handheld computers.

The news sent Handspring shares reeling. The stock tumbled 23% in after-hours trade to $2.83, after having closed up 37 cents at $3.72 on Nasdaq.

Excluding one-time items, Handspring lost $19.2 million, or 14 cents a share. It had a net loss of $27.2 million, or 26 cents, a year ago.

Revenue for the quarter ended March 30 dropped 52% to $59.7 million.

Analysts on average were expecting a 12-cent loss, with revenue of about $62 million, according to Multex Global Estimates.

Mountain View, Calif.-based Handspring slashed its outlook for revenue in the fourth quarter to between $47 million and $57 million, compared with analysts’ outlook of $89 million.

The company now predicts it will reach profitability in the quarter ending in December, rather than its previous goal of the June quarter.