Venture capitalists wouldn't fund us because it wasn't wireless.

Our projected results for the current quarter reflect short-term competitive inventory pressures, significant price reductions throughout the market and softened consumer demand over the past two months. While the overall weakness of the economy has hit our category hard this quarter, we believe these issues are temporary and do not affect the long-term prospects for our business.

We recognize that uncertainty regarding Palm's future pricing creates uncertainly for Handspring's near-term sales and margin outlook, and to the extent that we need to respond, we will.

I mean, they sort of refused to come to the table with any incremental capital. They would have loved for us to be acquired — just get their money out and be gone.

We are pleased to report such outstanding results in our second quarter as a public company. We continue to see broad acceptance of our products and the Springboard platform across all regions of the world. We feel very positive about our position as we head into the holiday season.

At Handspring, we believe that the future of the handheld industry lies in wireless communication, and we are investing our resources accordingly.

We are pleased with the results of the quarter, particularly our ability to achieve revenue growth in what is usually a sequentially down quarter in our industry.