Handspring today posted revenues of $115.6 million for the second quarter of fiscal year 2001 which ended December 30, 2000. Quarterly revenues increased 64% over Q1, and over 600% compared to Q2 of last year, reflecting strong holiday demand for Handspring's Visor line of handheld computers. Continued channel expansion in the U.S. retail market, along with new distribution channels in Asia, also contributed to the strong quarter.

Handspring's gross margins increased to 31.4%, up slightly from the prior quarter. Excluding amortization of deferred stock compensation, Handspring reported a net loss of $7.0 million during Q2. Excluding amortization of deferred stock compensation, total operating expenses were $45.6 million, or 39% of revenue. Including amortization of deferred stock compensation, net loss for the quarter was $15.2 million.