BlackBerry 10 delayed to Q1 of 2013, RIM loses $518 million in its latest quarter

BlackBerry 10 delayed to Q1 of 2013, RIM loses $518 million in its latest quarter
The end days of RIM could be upon us as the Canadian manufacturer reported a loss of $518 million for the quarter ended June 2nd. What takes this from bad news to a possible terminal diagnosis is the word that the one thing that RIM was counting on to turn things around, new handsets running the BlackBerry 10 OS, have been delayed to the first quarter of 2013. The company will continue to layoff workers.

RIM had revenue of  $2.8 billion in the quarter, down 33% from the $4.2 billion it reported sequentially last quarter. The GAAP net loss of $518 million for the three month period is a company record for futility and a sharp rise from the $125 million loss  RIM had in the prior quarter. Year-over-year, RIM had a $1 billion turn around dropping to that $518 million loss after posting a $695 million profit in the same quarter last year. The number of BlackBerry subscribers actually rose in the quarter to 78 million. All regions except for North America are showing growth. While far behind the App Store, Google Play Store and Windows Phone Marketplace, BlackBerry App World has 89,000 apps on its shelves according to RIM.

Wall Street had expected RIM to report $3.07 billion in sales and a loss of 4 cents a share for the quarter. Instead, RIM reported revenue of $2.81 billion and a loss of 37 cents a share. Last year, RIM had a profit of $1.33 a share. The company expects an operating loss in the current quarter. CEO Thorsten Heins says he is delaying the release of the new BlackBerry 10 smartphone because it is not yet ready to meet his exacting standards.

RIM CEO Thorsten Heins

RIM CEO Thorsten Heins

Part of the problem is that the company's margins are shrinking rapidly. RIM had gross margins of 28% in the recently ended quarter compared with 43.9% the same time last year. But the financials are in the past. RIM executives say they are focused on BlackBerry 10 and the company recently played some teasers showing the platform to those attending BlackBerry World. Images recently leaked showed two separate series for BB10 handsets. The L series uses a virtual QWERTY keyboard and was expected to be released in September. The other is the N series, a BlackBerry Bold-esque model with the extremely capable physical QWERTY keyboard.that was expected in Q1 of 2013.

RIM's Cost Optimization and Resource Efficiency (CORE) program is trying to save the company $1 billion by the end of fiscal 2013.Part of the savings will come from a layoff of 5,000 workers before the end of fiscal 2013. Other cost savings will come from reducing layers of management, streamlining the supply chain, and focusing in areas where the company remains strong. The stock closed at $9.13 before the earnings announcement. After the announcement, shares were bid at $7.84 and offered at $7.87.

sources: electronista

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18 Comments

1. iixacexii unregistered

Lets have a moment of silence for RIM

2. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

When (not if) the epitaph for RIM is written it will be that they were obsessed with trying to recapture the greatness of days gone by. Another example from the past was Digital Equipment Corp. There is a time to hold and a time to fold. The time to hold has long lapsed.

3. Birds

Posts: 1172; Member since: Nov 21, 2011

I feel so let down. I was really anticipating this. I mean I was anticipating this more than I anticipated my bother's return from Iraq. I still have high hopes for this but at this point, RIM needs a miracle.

4. cornerofthemoon

Posts: 619; Member since: Apr 20, 2010

The RIM Reaper.

7. threeline

Posts: 305; Member since: Sep 11, 2011

Hilarious!

5. cornerofthemoon

Posts: 619; Member since: Apr 20, 2010

The fat lady has sung, finished the opera, and his at home in bed in her nightgown nursing her sore throat.

6. shamataa

Posts: 257; Member since: Dec 07, 2011

This is such a drag. Later RIM nice knowing you. TOMBSTONE.

8. parkwaydr

Posts: 572; Member since: Sep 07, 2011

I had faith, but its over. Rim tried to hold on to thier glory days and didn't evolve with the market, yeah bb phones are durable and have decent security. But there is only a small group that still prefers the bb style phone build, and all the storms where so bad, they seemed like they weren't even thought out, I hate to say this, but rim needs to licence Android or Windows ASAP and stick with hardware.

9. e.wvu unregistered

By the time RIM (if ever) releases BB10, they will likely be bought out or out of business.

10. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Well, at the very least, if RIM begins to make any kind of comeback, we can start calling them the Walking Dead. :)

12. cornerofthemoon

Posts: 619; Member since: Apr 20, 2010

RIM has decided to change the name of it's next mobile operating system from BB10 to Unicorn 0.0.

13. cornerofthemoon

Posts: 619; Member since: Apr 20, 2010

Game Over, Toast, The End, Kaput, Adios, Screwed, F*cked, Doomed, Outa Here

14. cornerofthemoon

Posts: 619; Member since: Apr 20, 2010

At least Palm actually released something, and they had far fewer $$$$ for R&D than RIM.

15. BattleBrat

Posts: 1476; Member since: Oct 26, 2011

Yeah, Palm (which I liked) went out swinging, RIM is bending over and taking it like a bi*** WILL YOU RELEASE BB10 ALREADY!?! IF YOU DON'T YOU WON'T SURVIVE!!!

16. TheRetroReplay

Posts: 256; Member since: Mar 20, 2012

At least with RIM, they're trying to stay afloat, Nokia is just grabbing onto the biggest rocks they can get to pull them down even further.

17. Commentator

Posts: 3722; Member since: Aug 16, 2011

Even if BB10 is released, and it's a hero operating system that blows all the competition out of the water (which it almost certainly won't), BlackBerry is still doomed by its non-existent ecosystem. Focusing entirely on e-mail and messaging was a great plan... ten years ago. However, things are changing to the point that smartphones are ingrained into nearly everything we do, from a consumer-computing standpoint at least: iOS has its integration with Macs, iCloud, Apple TV, etc; as we've seen with both Android and Chrome, Google is aiming to leave a mark on basically anything electronic; and if WP8 is done right it will have without a doubt the best overall ecosystem of any mobile OS in history, given Windows' sheer ubiquity in consumer electronics, from PCs to the Xbox. The sad truth for BlackBerry is that it was doomed from the start (or at least from around the mid-2000's): even if it had recognized the need to create a vast, multifaceted ecosystem in which to integrate their OS, there is little they could have done. Apple had been building an empire with its i-devices, Google had been doing the same with its many services, and the market is so saturated with Windows products that, even this late into the game, Microsoft should be able to force its way into the smartphone market with relative ease (again, assuming WP8 is the real-deal). In short, each of these companies has turned to smartphones AFTER they have their ecosystem in place. But what about (aboot) BlackBerry? It is, and always has been, a handset manufacturer, straight and simple. Sure, BlackBerry OS might have a few perks that the others don't, but in the end BB10, however impressive, will amount to little more than a feature-phone OS. In the immortal words of Principal Seymour Skinner: "The times, they are a-becoming quite different." The big three of Apple, Google, and Microsoft are rapidly consolidating power, and there's little for handset manufacturers like Nokia and Samsung to do but follow along and pick sides, whether it be WP or Android. A thought occurs: If BlackBerry is in dire straits (which it is) it should team up with, or be sold to, Facebook. Facebook is looking for a way to further integrate itself into the smartphone world (or so Mark Z has said) and BlackBerry is in dire need of an ecosystem, which Facebook can provide.

18. akita256

Posts: 98; Member since: Jan 26, 2012

Doesn't matter how good the BB10 turns out to be........it's too late for RIM because nobody is going to want to buy it. RIM can't last 6-9 more months before it's released. If I were Heins, I'd turn out the lights and lock the doors.

19. downphoenix

Posts: 3165; Member since: Jun 19, 2010

As much as I admire Heins' penchant for having a quality product released, Im afraid RIMs time is running up. Blackberry will need to do something to bring in some income, if they keep running dry, the stockholders will continue to lose confidence and pull out while they still have something left in the company. BB10 launching this September would have been soon enough.

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