Profits were up, but RIM failed to meet expectations in Q4

Shares of RIMM fell 5% in after hours trading as the Canadian smartphone maker and enterprise staple announced its Q4 results. Revenue, while up 18% compared to the same time last year at $4.08 billion, was only up 4% compared to Q3 and failed to meet the $4.31 billion analysts were expecting. Net income stood at $710.1 million with earnings of $1.27 per share diluted, a modest gain over the to the $682.4 million or $1.10 in the previous quarter. Having shipped 10.5 million devices and adding 4.9 million new net subscribers, RIM now has some 41 million people relying upon its BIS and BES services. What this all boils down to is while RIM is taking in a lot of money, it’s also losing out on a lot as it desperately attempts to cut costs to remain competitive and gobble up more marketshare. RIM is predicting Q1 of fiscal 2011 will see revenue hit $4.25 to $4.45 billion and a earnings per share of $1.31 to $1.38 per share diluted. Net subscriptions are expected to hit a record 4.9 to 5.2 million.

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