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RIM’s earnings beat expectations despite $235m loss

Shares in the Blackberry maker leap 18 percent
Fri Sep 28 2012, 10:05
BlackBerry Bold 9790 keyboard

BLACKBERRY MAKER Research in Motion (RIM) has impressed investors with its fiscal second quarter earnings, despite posting a £235m loss.

Announced on Thursday, RIM's quarterly earnings saw the firm's shares leap by 18 percent, even though the company posted its lowest smartphone shipments since 2008. It announced that it shifted 7.4 million smartphones during the quarter as well as 130,000 Playbook tablets, probably thanks to retailers' discounts.

While these were RIM's lowest sales figures for a while, they were above what analysts had been expecting.

RIM reported a net loss of $235m (around £145m), compared with a profit of $329m for the same quarter last year. However, RIM increased its cash reserve to around £2.3bn, up from $2.2bn in the first quarter.

Thorsten Heins, president and CEO of RIM, understandably seemed pleased by the results. "Despite the significant changes we are implementing across the organization, our second quarter results demonstrate that RIM is progressing on its financial and operational commitments during this major transition," said Heins.

"Subscribers grew to approximately 80 million global users, revenue grew sequentially from the first quarter, cash, cash equivalents, short-term and longterm investments increased by approximately $100 million to $2.3 billion, and carriers and developers are responding well to previews of our upcoming Blackberry 10 platform.

"Make no mistake about it, we understand that we have much more work to do, but we are making the organizational changes to drive improvements across the company, our employees are committed and motivated, and BlackBerry 10 is on track to launch in the first calendar quarter of 2013."

Heins also revealed that the company will be bringing mid-range and top-end Blackberry 10 devices to market by next Autumn, with low-end devices coming later in the year. µ

 

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