RIM disappoints in second quarter; Stock tanks after-hours

RIM disappoints in second quarter; Stock tanks after-hours
Paying off a legal settlement hurt RIM's second quarter earnings. After a charge of $113 million dollars to pay Visto Corp. to end a patent dispute, the BlackBerry manufacturer earned $475.6 million dollars for the period, down from the $495.5 million dollars it earned last year. Throw back in the charge and RIM would have made a profit of $588.4 million dollars in the second quarter. Revenue missed Wall Street expectations with sales of $3.53 billion dollars vs. the expected $3.62 billion dollars number that analysts were looking forward to seeing. Because of that miss, RIM stock is down over 10% in after-hours trading following the release of the report.

RIM said it shipped 8.3 million smartphones in the period, adding 3.8 million new subscribers-just a tad under the 4 million that analysts were seeking. In another disappointment, the Canadian firm said it expects third Quarter sales of between $3.6 billion dollars and $3.85 billion, shy of the $3.92 billion dollars that Wall Street wants to see. Earnings for the current period are expected to range between $1.00 and $1.08 per share. Analysts expect to see $1.05 a share in profit for the third period.

source: WSJ

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6 Comments

1. Kiltlifter

Posts: 742; Member since: Dec 11, 2008

Interesting... So were analysts thinking the all mighty blackberry was immune to the "recession?" I personally think the only thing cool that RIM devices have is the BBM. But those seem like solid earnings to me.. but hey, I am not an investment banker.

2. vzw fanman

Posts: 1977; Member since: Dec 11, 2008

well the new 5.0.191 os for the storm has threaded SMS, it's wicked cool.

3. remixfa

Posts: 14605; Member since: Dec 19, 2008

its just another way for them to bash anything non-apple. "stocks tank"??? really? 10%??? thats tanking? no, 40%+ would be tanking, 10% would be on expectation concidering the news. seriously phone arena, get over your iphone humping.

5. theman10

Posts: 93; Member since: May 16, 2009

It's hard to take you seriously when you can't even spell.

6. PapaJay224

Posts: 866; Member since: Feb 08, 2009

"The Man" no one cares what you think...its hard to read what you write cause your an idiot...

4. tigermcm

Posts: 861; Member since: Sep 02, 2009

Where in this article does it talk about apple? iphone? seriously I think some people need to stop praising the Iphone so much it clouds their judgement. Iphone is not the best phone out there in fact any phone released in the US is not the best phone over seas has been killing us for quite some time. Man phonearena could talk about the lastest movies and people will say they're bashing apple get over yourself.

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