Handspring to develop Smartphone for Orange

Handspring's revenue for the third quarter of fiscal 2003 was $30.8 million, down from $47.8 million in the second quarter of fiscal 2003 and from $59.7 million in the third quarter a year ago. Revenue for the quarter included $21.1 million in communicator sales and $9.7 million in sales of organizers and accessories. On a GAAP accounting basis, net loss for the period totaled $90.4 million, or $.62 per share as compared to a net loss of $12.3 million, or $.08 per share in the prior quarter. Excluding charges for the Sunnyvale lease restructuring of $75.9 million and the amortization of deferred stock compensation of $1.7 million, Handspring's non-GAAP net loss for the quarter was $12.8 million, or $.09 per share as compared to a non-GAAP net loss of $10 million, or $.07 per share, excluding amortization of deferred stock compensation of $2.3 million, in the prior quarter.

Handspring also said it has signed an agreement with Orange SA, one of the world's largest communications companies, to work together to develop future smartphones designed for the Orange network in Europe, with product shipments expected to begin this fall.

We've continued to grow our Treo installed base through a difficult quarter, reaching 180,000 customers, while investing in a significant new product due this fall," said Handspring CEO Donna Dubinsky. "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."