Handspring losses increase

Palm spin-off Handspring, said it lost $23.7 million on $59.7 million in

revenue. A year ago the company lost $27.2 million on $123.8 million worth of

sales. The sluggishness of the PDA market will further reduce Handspring's

quarterly sales level to between $47 and $57 million the company said.

Part of Handspring's problems is the transition from a manufacturer of

personal organizers, such as its Visor handheld system, to an expansion into the

new market of devices that combine the PDA and cellular telephone. The company's

Treo has already been launched in Europe where some 50,000 units have been sold

to date. That number slightly exceeded the company's targets, handspring

officials said.

Handspring hopes its early entry into this market, will help it become a

leading supplier once volume purchases of these devices tales off over the next

two or three years. Handspring has signed deals with 12 wireless carriers to

market the Treo, said Donna Dubinsky, Handspring's chief executive.

Wall Street analysts so far agree that the company will be better off by

focusing on the new next-generation product than spending any further effort on

the competitive PDA-only sector.