RIM Shares Plunge as Company Loses Subscribers

Posted by Knowlton Thomas

RIM posted an adjusted net loss of 22 cents per share, well below the general consensus of 35 cents per share, but that wasn't enough to stave off otherwise disappointed investors.

Research In Motion generated $2.7 billion in revenue, slightly above Wall Street expectations but far below the same quarter last year. The Waterloo-based company shipped 6.9 million BlackBerry smartphones—fewer than last quarter—and 250,000 PlayBook tablets.

RIM is now sitting on $2.9 billion in cash. But for the first time ever, the Canadian company saw a drop in subscribers: down one million to 79 million. The fact that RIM, even during its darkest days, consistently grew its userbase was a majorly touted aspect of the company's appeal. It no longer has that argument on its side, but the good news is that we're only one month away from a potentially game-changing BlackBerry 10 platform.

"RIM continued to execute on its product roadmap plans and to deliver on key financial metrics as it gets set for the global launch of BlackBerry 10," said Thorsten Heins, CEO. "More than 150 carriers are currently completing technical acceptance programs for the first BlackBerry 10 products, and beta trials of BlackBerry Enterprise Service 10 are underway at more than 120 enterprises including 64 Fortune 500 companies. This is an exciting time and our carrier partners, application developers and employees are all looking forward to unveiling the innovation and excitement of BlackBerry 10 to our customers on January 30, 2013."

We've also learned that RIM's chief information officer, Robin Bienfait, is retiring at the end of this year. She was with RIM for six years, primarily handling the enterprise services division.

Shares are down 12% in after hours trading.

Company:
BlackBerry
Website:
http://www.blackberry.com
Location:
Waterloo, Ontario, Canada

Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry solution in 1999. Since then, BlackBerry products and services have continued to change the way millions of people around the world stay connected. With the launch of BlackBerry 10, we have re-designed, re-engineered and re-invented BlackBerry. Not only did we introduce a... more


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Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys playing tennis, hiking, and exploring weird side streets. more



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