RIM shows its resiliency; Q2 results surpass analyst expectations (mostly)
Canada's largest technology company, Research In Motion, reported its second quarter financial results for its 2011 fiscal year yesterday afternoon.
Amongst all the negative hype about RIM and how its product suite stacks up against the competition, the wireless solutions company posted some impressive financial results, beating analyst expectations in all but one area. Here is the breakdown of some of RIM's Q2 FY2011 operating results as compared to analyst expectations (analyst expectations appear first in each area noted):
- Revenue - US$4.47 billion vs. US$4.62
- Earnings Per Share - US$1.34 vs. US$1.46
- Net-New Subscribers - 5 million vs. 4.5 million
The Waterloo, Ont.-based company increased revenues by 31 per cent over the same quarter last year, shipping approximately 12.1 million devices in its second quarter. Net Income was also up for the quarter, increasing 3.6 per cent compared to the previous quarter and an impressive 67.5 per cent compared to the same quarter last year, to US$796.7 million.
Jim Balsillie, Co-CEO at RIM had this to say about the company's results:
"RIM set another new record in the quarter by shipping over 12 million BlackBerry smartphones. This accomplishment and RIM's solid financial results during the second quarter were driven by effective business execution and strong demand for RIM's portfolio of BlackBerry smartphones and services in markets around the world. We expect a continuation of this momentum in the third quarter as we extend the rollout of new products including the BlackBerry Torch into additional markets and benefit from heavy promotional activities and increasing customer demand as we head into the holiday buying season."
Along with its second quarter results, RIM also issued its outlook for Q3, forecasting revenues in the range of US$5.30-US$5.55 billion. Gross margins for the same quarter are expected to be around 42 per cent, while the wireless solutions leader expects to add another 5.0-5.4 million net subscribers.
For complete details on RIM's most recent release, take a look here.
