10Meters News Service

Oct. 19, 2001 Handspring remains competitive despite operating in a tough environment and uncertain times. That's the message Handspring CEO Donna Dubinsky delivered to Wall Street this week.

"I've been around the handheld business for 20 years and I don't think I've seen a holiday quarter as difficult to project as this one," Handspring chief executive Dubinsky told Reuters after the company released its first quarter earnings.

The Mountain View, Calif.-based handheld maker on Wednesday reported a first-quarter loss of $26.2 million, or 22 cents per share, excluding charges. Compared with the same period last year, revenue decreased by 13 percent.

Dubinsky's uncertainty about future prospects is becoming a familiar refrain among companies. Last week, Motorola CEO Christopher Galvin said his company's long-term prospects could be affected by the uncertainty created by the September 11 terrorist attacks. The electronics giant reported a third-quarter operating loss of 7 cents per share on sales of $7.4 billion.

Handspring's highlights for the quarter include introduction of two new Visor products, the Visor Neo and Visor Pro; a license agreement with Sprint PCS to make Handspring's Blazer web browser software available to all Sprint PCS customers using Palm OS-based wireless devices; and a strategic partnership with Aether Systems focused on delivering wireless enterprise solutions.

Handspring said its Springboard platform continues to attract interest in the developer community, with more than 60 modules available today. During the quarter several Springboard expansion modules shipped from third parties. These include the Sprint PCS Wireless Web Digital Link CDMA phone module, Parafone Cordless Telephone Module by Arkon Networks, SkyGolf GPS by Skyhawke Technologies and Audible and Card Access Audible Advisor Springboard module.

Earlier this week, Handspring announced the Treo communicator, which combines a GSM phone, PDA and wireless email, messaging and web browsing in a single communicator device. Treo will be available in two versions: the Treo 180, which includes a built-in keyboard for text input, and the Treo 180g, for those who prefer Graffiti text input.

Handspring said Treo users also will be able to quickly dial from any of the thousands of numbers stored in Treo's phone book as well as create up to 50 one-touch speed dial numbers. Treo also includes solutions for sending and receiving text messages and email using the SMS messaging application and One-Touch mail solution from JP Mobile.