RIM reports Q1 earnings: misses analyst estimates, Q2 outlook misses, layoffs coming
RIM reports Q1 earnings: misses analyst estimates, Q2 outlook misses, layoffs coming
Research In Motion on Thursday reported earnings for the first quarter of fiscal 2012. After cutting its first-quarter outlook at the end of April, RIM’s May quarter came in below analyst estimates. First quarter revenue came in at $4.9 billion versus the Street’s estimate of $5.5 billion, and device shipments totalled 13.2 million versus expectations of 13.5 million. Net income for the quarter was $695 million, down from $769 million in the same quarter a year earlier. Earnings per share in the first quarter beat estimates by a penny at $1.33. RIM’s revenue for the quarter breaks down as 78% hardware, 20% service, and 2% software and other revenue. In the second quarter, RIM trimmed its outlook to $4.2-$4.5 billion in revenue, significantly under the Street’s consensus of $5.46 billion. RIM’s second-quarter EPS forecast is just $0.75-$1.05 versus $1.40 consensus. For the full year, RIM cut its EPS outlook from $7.50 to between $5.25 and $6 per share. “Fiscal 2012 has gotten off to a challenging start,” RIM Co-CEO Jim Balsillie said in a statement. “The slowdown we saw in the first quarter is continuing into Q2, and delays in new product introductions into the very late part of August is leading to a lower than expected outlook in the second quarter.” RIM also said it would soon begin a “program to streamline operations” that will involve job cuts. Shares of RIM stock opened down 15% in after-hours trading. RIM’s full press release follows below. More →








What would you do if you saw a filming crew from Verizon Wireless in the food court of your local mall? Well, if you were like one of our readers, you would mosey on over to get a closer look, get invited to play with the new Blackberry Storm, and then get paid $20 for your time while you watched them film a BlackBerry Storm commercial! That’s right, some cold cash in exchange for some thumb typing. With all the buzz this phone has generated, VZW could have used this opportunity to make some money, not pay out some money. How many of you would shell out $20 to get 10 minutes one-on-one with this new phone? Yeah, we thought so.
