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 →
BlackBerry PlayBook sales miss targets by over 90% at major retailer, ‘much higher’ return rate than XOOM
According to a trusted source from a major big box retailer, sales of RIM’s BlackBerry PlayBook have fallen far short of expectations. In addition, we’re told that the PlayBook is being returned at a higher pace than the Motorola XOOM. According to our source, PlayBook sales at this particular retailer missed internal sales targets by more than 90%. As if that wasn’t bad enough, the PlayBook is “being returned at a much higher rate than the XOOM,” which has a very high return rate itself at 7% according to our source. RIM launched its PlayBook tablet on April 19th and sales have been fairly impressive so far according to some analysts. Our source is singing a different tune, however, so let’s hope other major retailers are having better luck with the PlayBook. We’re rooting for RIM, but maybe amateur hour isn’t over yet?
UPDATE: RIM supplied BGR with an official statement in response to this post.