RIM’s Q3 results beat expectations

Retail

Just after the North American markets closed this Thursday, RIM announced its Q3 earnings. While many analysts believed that RIM would have a hard time meeting its adjusted earnings forcast, RIM actually exceeded them, but just barely. In this day and age, exceeding a forecast is nothing short of a coup, even if by a fraction of a percentage point. RIM’s revenue came in at $2.78 billion, up 7.9% from Q2, while net income totaled $396.5 million (adjusted net income stood at $477.3 million). Earnings were $0.83 per share diluted, which beat expectations by $0.01. As for Q4, RIM is expecting strong sales which strangely enough is thanks in part to previous delays for the Bold and Storm. Because both devices were released at the tail end of Q3, it is expected that the high demand for them will help RIM weather what has been predicted by some to be one of the worst holiday retail seasons in recent history.

Hit the jump for the official RIM release.

Waterloo, ON – Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM), a world leader in the mobile communications market, today reported third quarter results for the three months ended November 29, 2008 (all figures in U.S. dollars and U.S. GAAP, except where noted). The third quarter results reported today by RIM are in line with the preliminary third quarter results reported by RIM on December 2, 2008.

Revenue for the third quarter of fiscal 2009 was $2.78 billion, up 7.9% from $2.58 billion in the previous quarter and up 66.3% from $1.67 billion in the same quarter of last year. The revenue breakdown for the quarter was approximately 81% for devices, 13% for service, 2% for software and 4% for other revenue.   During the quarter, RIM shipped approximately 6.7 million devices.

Approximately 2.6 million net new BlackBerry® subscriber accounts were added in the quarter.  At the end of the quarter, the total BlackBerry subscriber account base increased from the prior quarter by approximately 14% to approximately 21 million.

“We are pleased to report record revenue results for the third quarter and we have entered the fourth quarter with strong momentum despite the challenging general economic conditions. In fact we have enjoyed our best ever start to the holiday buying season over the past few weeks,” said Jim Balsillie, Co-CEO at RIM. “RIM launched an unprecedented number of BlackBerry smartphones in the third quarter and these new products are being adopted at an even faster pace than we expected. Our industry leading product portfolio is positioned well to capitalize on the increasing market opportunity in the fourth quarter of fiscal 2009 and beyond.”

Net income for the quarter was $396.3 million, or $0.69 per share diluted, compared with net income of $495.5 million, or $0.86 per share diluted, in the prior quarter and net income of $370.5 million, or $0.65 per share diluted, in the same quarter last year.  Adjusted net income for the quarter was $477.3 million, or $0.83 per share diluted.  Adjusted earnings per share excludes a negative impact on RIM’s tax rate due to the significant depreciation of the Canadian dollar in Q3 and its effect on RIM’s U.S. dollar denominated assets and liabilities held by RIM’s Canadian operating companies that are subject to tax in Canadian dollars.(1)

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41 Comments
  • Tom

    With the Bold, the Storm & new Curve the first quarter of 09 will be record setting for RIM. Three great devices that are all unique and target different users. RIM really stepped it up.

  • Sean76

    Hey GeeWiz take a sip of some eggnog and relax! your in a blog that is speaking about RIM, not Apple! all you have here is people that really enjoy there Blackberry sticking up for the company (RIM) that puts em out! All this is nonsense ,If RIM did that, if Apple did that, blah, blah, blah! Rim makes the absolute best messaging device on the planet, hands down. The media, music, etc, is all secondary to most of us power users. Maybe music and U-Tube is most important to you. But I like me phone to work and be loud, a-la Blackberry Bold, Curve, Pearl, or 8700, etc! iphone is terrible as a phone, cant hear on that thing in an empty Church. And as far as mms (opps, iphone cant do that) email, texting, goes, lol.. is all I have to say.

    Listen, an iphone is a media giant and a revolutionary one that really made alot of device companies step there game up. But all this comparing is nonsense. RIM is the best at what it builds, Apple cant compete with them when it comes to a messaging device. And I don’t hear anyone saying RIM makes better media devices then Apple. At the end of the day there both great at what they do. But I’ll still take my Bold over the iphone any day, as a matter in fact I’ll take it over any device!

  • Malfoy

    Because Apple haters don’t post in EVERY single Apple post accusing any site and or commenters of being Apple fanboys or simply on Apple’s Payroll.

    Welcome to the internet.

  • GeeWiz

    @duydee:
    I get hugged all the time, by your mother! She is good at other things also. Use your imagination. Real MILF with small hooters. She has a big mouth like you.

    @Sean76 (is 76 your IQ?)
    The BLOG is not all about RIM and BB. Only in your fanboy fantasy, I guess. The POST on the BLOG is about RIM numbers being decent despite getting beat up by APPLE!

    IN YOUR low IQ opinion BB is the best. I happen to think that RIMs best days of being a leader are over (so does Wall Street). As they have a decent phone with email along with a terrible browser and almost no apps and little else. Even the mail can not support simple IMAP, so I am not convinced it is the best at email, especially when RIM goes down for an entire day or more which happened twice this year!

    The game was changed and they are running around playing catch up. You just have not noticed yet. A phone and email is a bit short to be a decent smartphone these days.

    You can tell all the stories you like making up issues of any device that competes with your special plastic toy. BUT actual use is the iPhone is a great phone and allows voice and data use at the same time something your plastic toy can not do. Voice quality and speakerphone quality is quite excellent.

    The Acme Buggy Whip company WAS the best at what it built, long ago when people ONLY wanted buggy whips. Guess what happened?

    Apple NOT ONLY COMPETED WITH BB IT BEAT ALL OF RIM outselling all BBs in the last quarter after only 16 months with only ONE model phone! That is the fact BB nuts do not like to talk about. If I was buying a BB it would also be the Bold! Because RIM sure has no idea how to make a touch screen device so far. Storm is garbage. Makes a good toy clicker for dog trainers though. The comparing was when RIM turned on the broken copy machine!

  • sean76

    Geewiz your taking this I believe to another level, and a person like you would! Hiding, trolling around, talking about people mothers, bringing up IQ’s! Yes, I’m convinced, your a troll! Anyway buddy, I’ve been hittin this sight for a while now, and have to say your remarks are pretty ridiculous, out of line, and a lil false. If your IQ was so high, you’d see that I really never bashed apple or any thing like that. What I did say was that Blackberry makes the best messaging device around, and they do Mr. Troll! It’s the reason why most of the secret service use them, and almost the rest of the US government. Jesus, are next President is even trying to keep his. You see any of them runnin around with iphones? Hmm, no I don’t think so. Maybe you got beat up as a kid, maybe you still get beat up every now and then who knows! But it’s the holiday season, so I’ll be nice in closing! Now go home and get your Shine Box, and be happy were having this conversation over the Internet. Happy Holidays to all my fellow Blackberry users. and to all a good nite!

  • sean76

    Sorry for being a lil rude on your site BG, but that lil Troll GeeWiz had it comin.

  • MasterMike

    Go home and get your shine box!!!! hahahahahaha

  • lolapplefanboy

    Its ok geewiz is a tool along with being a troll. Sorry that your ipod touch with
    A phone app happens to be one of the hottest phones on the market, but its not the best by a longshot
    Your E-thuggery is about as cool as a kid who plays WoW

    Remember the Razr? Wasn’t that the hottest on the market yet they aren’t even brought up anymore for having nice phones
    If apple can’t keep the success of the iphone then its nothing but a one trick pony, but those BB will keep selling.

    Please take your failboat back to steve jobs island and proceed to blow his dick

  • GeeWiz

    Sorry I didn’t know I was dealing with the Secret Service! That makes a difference! LOL!

  • http://www.k5live.com Likeabite

    I’m glad RIM beat analyst expectations, even in such a rough economy. The point people seem to miss is that this blog post is about RIM’s quarterly earnings…there is no where in here where Apple or the iPhone was mentioned so…unless you can’t read you have no business mentioning things that have nothing to do with this post. Apple has released two phones, not one so stop the foolishness. They just happen to look exactly the same, with the inclusion of 3G in one, because Apple hasn’t figured out how to do anything else yet with that MP3 player with a phone app. They’re most like going to release an iphone nano with the same form factor and a smaller screen, just as they have with all their other products in an effort to milk it for all its worth. RIM was late to the game this year and thus the iPhone had its shine. Now that they’re back and doing well everyone wants to hate…just be happy with what you have and move on. Don’t come into a post that has nothing to do with you just to talk nonsense…it’s plain stupid.

  • Paul

    Apple only offers ONE iPhone model in 8GB or 16GB! They have an iPod touch that is an iPod, NOT a phone! They also have 13,215 iPhone apps. They also beat all of RIM with all their models of BB on ALL carriers with just on iPhone! I doubt their will be an iPhone nano, that is fanboy nonsense as Apple already said there would be none.

    Don’t you love when a foolish fanboy goes after someone claiming a post is not about a subject (when it is related) and spends his time telling you all about what he said the post wasn’t about decorated with all is biased opinion? I do. It makes great reading for all the normal people.

  • Telly

    Didn’t Napoleon’s forces fall in Waterloo?

  • Telly

    I wonder how many BB fanboys will be happy if Apple beats expectations?

  • Hayweed

    While a beat will be nice, only Rimm beat lowered guidance. Big deal. Apple guided low by stating $1.30 which is 1.17 billion in earnings. If they sell 5 million iphones then about another billion in earnings will be deferred or the earnings will be about $2.30 non gaap in a recession. This will only snowball as more money is made and Apple needs to spend it. Want to guess that Apple bids for that encryption company that Rimm is trying to buy and then charges Rimm fees or do they just bluff to force Rimm to pay extra. MSFT or IBM may also bid and Rimm has limited money compared to the big boys.

  • kuro

    simple facts:
    ‘berries are communication devices
    iphones are media devices

    the 2 can’t be fairly compared simply because of a touchscreen and the ability to make a phone call.

  • http://www.k5live.com Likeabite

    @ Kuro couldn’t have said it better myself

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