Handspring this afternoon reported a second-quarter loss of US$19.8 million ($14.4 million excluding one-time charges) as revenues declined 40 percent from the year-ago period to $70.5 million from $115.6 million. The loss edged analysts’ expectations but Handspring warned that product of its three-in-one Treo handheld has gotten off to a slow start due to component shortages. Some analysts, such as J.P. Morgan’s Paul Coster, see the Treo as a “make or break” item for the company.