RIM reports steep drop in quarterly profit, shares sink 20%

By on September 16, 2011, 10:19 AM

Research In Motion is taking a beating in the stock market after reporting another disappointing quarter. The Canadian firm saw profit before tax fall by half from $904 million, on revenue of $4.9 billion the previous quarter, to $414 million on revenue of $4.1 billion in the three months ending 27 August 2011. The drop is attributed mostly to an aging lineup of BlackBerry smartphones, which was only refreshed very late in the quarter, and slow sales of its PlayBook tablet device.

It was also the first time the company saw a year-over-year decline in BlackBerry shipments. RIM shipped 10.6 million smartphones and 200,000 PlayBook tablet computers during the quarter, sharply below analysts' average estimate of 11 to 12 million BlackBerry phones and between 400,000 and 600,000 PlayBooks. By comparison, Apple sold 20.34 million iPhones and 9.25 million iPads in its most recent quarter.

The company said it expected results to pick up through the rest of the year as upgraded, touchscreen versions of its Bold, Torch and Curve smartphones start selling in volume across the world along a Torch-branded touchscreen-only device. Their QNX-based smartphones are not likely to arrive until sometime next year, however.

Revenue for the next quarter ending 26 November 2011 is estimated to be in the range of $5.3-$5.6 billion, with a gross margin of 37%, and Blackberry smartphone shipments between 13.5 and 14.5 million. Despite these promises RIM's shares on NASDAQ have dropped more than 20% since the results were posted (currently at $24.36).




User Comments: 9

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Burty117 Burty117, TechSpot Chancellor, said:

This is good news, hope this time in 5 years we'll hear RIM fully dying

Didou Didou, Bowtie extraordinair!, said:

Maybe now would be the time to release BBM on some extra platforms like Android &/or iOS. :-P

Butch said:

This is sad. I have always preferred my Blackberry phones over all others and hate to see news like this about RIM. Hopefully they will rebound this quarter.

Zilpha Zilpha said:

This is sad. I have always preferred my Blackberry phones over all others and hate to see news like this about RIM. Hopefully they will rebound this quarter.

I did too, except in trying to keep up with the times they would change things that didn't need to be changed, and leave other things that DID need to be changed, stagnate. Their heyday is over. Now even businesses are relaxing their requirements on their employees, and true multimedia and multifunction devices are enjoying the spotlight.

As much as I loved my Blackberries over the years, I'm not sorry to see the dinosaurs go.

slh28 slh28, TechSpot Paladin, said:

Maybe this will force them to release phones that actually look different for a change...

Guest said:

Current Users Options:

1. Invest on iPhone Life-Style Commerce

2. Invest on Android Developer's Marketplace

3. Invest on BlackBerry Social Network

4. Invest on 15 gram of GOLD

5. No Investment due to Crisis

These are fashion in consumers demands with

any fundamental in business.

Lionvibez said:

Even tho I agree with some of what you guys have said, i'm Canadian and RIM employs alot of people including my friends so I don't want to see them go. The Canadian economy is better shape than the US one but these aren't the times to be looking for work regardless.

DeliciousPie said:

Burty117 said:

This is good news, hope this time in 5 years we'll hear RIM fully dying

Because the Smart-phone market needs less competition, right?

Don't be an *****.

aj_the_kidd said:

DeliciousPie said:

Burty117 said:

This is good news, hope this time in 5 years we'll hear RIM fully dying

Because the Smart-phone market needs less competition, right?

Don't be an *****.

Yes we do need some more competition, but that being said I would love to see Symbian and MeeGo die but not RIM

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