RIM Posts Extreme Loss Far Worse Than Expected by Wall Street

Posted by Techvibes NewsDesk

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.)

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. BlackBerry products and services are used by millions of customers around the world to stay connected to the people and content that matter most throughout their day. The BlackBerry product line includes the BlackBerry® PlayBook™ tablet, the award-winning... more


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Techvibes NewsDesk

Techvibes NewsDesk

Techvibes is Canada's leading technology media property. Originally founded in 2002, Techvibes is dedicated to covering social, mobile, and startup news that impacts Canadians. Our editors and nationwide network of reporters combine breaking hyperlocal news with international coverage to deliver a unique balance of insight and information. The Techvibes Newsdesk covers a broad beat and... more



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