Wall Street knew RIM's quarterly earnings report today was going to be ugly. Just not this ugly.
Expecting a loss of seven cents per share—already a steep fall from last year when the Waterloo-based BlackBerry maker posted earnings of $1.33 per share—RIM actually posted an adjusted loss of 37 cents per share.
Further, net sales tumbled more than 42% to below $3 billion, RIM stated.
In addition, the company says it will lay off up to 5,000 employees within the next year.
RIM shipped less than eight million BlackBerry devices during the quarter, slightly below Wall Street expectations. RIM shipped just over 250,000 PlayBook units.
And, perhaps worst of all, RIM will delay BB10 until 2013: "The integration of these features and the associated large volume of code into the platform has proven to be more time consuming than anticipated," RIM explained.
"I am not satisfied with these results and continue to work aggressively with all areas of the organization and the Board to implement meaningful changes to address the challenges, including a thoughtful realignment of resources and honing focus within the Company on areas that have the greatest opportunities," RIM's CEO Thorsten Heins said.
RIM started trading again in after hours and instantly plummeted nearly 17% to below $8, sinking the company's market value—which once approached $100 billion—to barely $4 billion. (Update: this has so far peaked at a dip of 18.5%.)
"RIM's development teams are relentlessly focussed on ensuring the quality and reliability of the platform," Thorsten said of the BlackBerry 10 delay, "and I will not compromise the product by delivering it before it is ready."
"I am confident that the first BlackBerry 10 smartphones will provide a ground-breaking next generation smartphone user experience," he added. "We are encouraged by the traction that the BlackBerry 10 platform is gaining with application developers and content partners following the successful BlackBerry Jam sessions that we have held around the world since the beginning of May. Similarly, the reception of the BlackBerry 10 platform by our key carrier partners has been very positive."
Thorstein Heins will be compensated more than $10 million this year as he prepares to lay off 5,000 employees.
(This article has been updated as new information became available.)