Handspring today reported a first-quarter loss of US$32 million, as revenues slumped to $61.4 million. The company blamed fierce competition, and the associated price cuts, as well as lackluster demand and a weak economy for its disappointing results. The company did meet its own revenue and expense targets, however. Macromedia, meanwhile, reported a second-quarter loss of $70.7 million on revenues of $87.1 million. The company expects third-quarter revenues to be flat to 10 percent lower in the face of difficult economic conditions.