Handspring Cuts Outlook for 4th-Quarter Revenue
Handspring Inc. halved its fourth-quarter revenue outlook and cut prices on its two marquee models, saying it could not overcome slack demand, growing inventories and aggressive price discounting by Palm Inc.
Mountain View, Calif.-based Handspring said it now sees revenue in the quarter ending June 30 at between $60 million and $65 million, down sharply from its most recent forecast of about $130 million.
Wall Street analysts had expected a warning, but said it was somewhat greater than predicted.
The news comes on the day that Handspring announced a rebate program for its newest hand-held, the Visor Edge. Handspring also said it would cut the price of its Visor Prism.
Shares slipped 10 cents to close at $8.90 on Nasdaq.
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