Handspring Takes a Hit

Hampered by slow sales and investment charges, the handheld computer maker posted a significant net loss for fiscal 3Q.

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Hampered by slow sales and investment charges, handheld computer maker Handspring Inc. on Tuesday posted a significant net loss for the fiscal third quarter.

The Mountain View, Calif., company reported a net loss for the quarter of $90.4 million, or 62 cents per share, compared with a loss of $12.3 million, or eight cents per share in the prior quarter. A year ago, the company had a net loss of $23.6 million, or 18 cents per share.

The company, known for its Treo line of handheld computers, recorded a charge against earnings of $75.9 million in the third fiscal quarter to account for the restructuring of a property lease in Sunnyvale, Calif. Excluding charges, the loss for fiscal Q3 was $12.8 million, or 9 cents a share.

Revenue for the quarter 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.

Handspring also announced an agreement with the European wireless carrier Orange SA, to develop smartphones designed for the Orange network. Products based on this partnership are due this fall.

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