RIM posts Q2 loss of $US235m, beats expectations

Analysts say results are not as bad as they could have been
  • (Computerworld (US))
  • 27 September, 2012 21:06

Research In Motion (RIM) has posted a net loss of $US235 million for the second quarter on revenues of $US2.9 billion. The earnings report came two days after the company said its subscriber base had increased to 80 million.

The loss equates to $US0.45 a share, $US0.01 less than the $US0.46 loss many analysts had expected.

Revenues a year ago for the second quarter were $US4.2 billion with earnings of $US0.80 a share.

"Our second quarter results demonstrate that RIM is progressing on its financial and operational commitments during this major transition," CEO Thorsten Heins said in a statement ( download PDF). "Make no mistake about it, we understand that we have much more work to do..."

Given RIM's struggles over the last year, the loss was less than expected, independent analyst Jeff Kagan said, "and in RIM's case, that's good news.... Could this be the beginning of a turnaround? While RIM is not growing yet, their losses seem to be getting under control."

RIM also said it shipped 7.4 million BlackBerry devices in the quarter and 130,000 PlayBook tablets, down from 7.8 million BlackBerrys and 260,000 Playbooks in the previous quarter. A year ago in the second quarter, RIM shipped 10.6 million BlackBerrys and 200,000 PlayBooks.

Noting that subscribers inceased by two million, and RIM's cash on hand is strong, Jack Gold, an analyst at J. Gold Associates, said he was also encouraged that RIM is selling devices at "roughly the same clip.... So while things are still very challenging for RIM, they are in no immediate danger of going under. They seem to have stabilized."

Given the quarterly results, he said the earnings numbers "seem to suggest RIM can easily hold on until BlackBerry 10 is here."

The company has said it is on track to launch BlackBerry 10 smartphones in the first quarter of 2013.

Matt Hamblen covers mobile and wireless, smartphones and other handhelds, and wireless networking for Computerworld. Follow Matt on Twitter at @matthamblen or subscribe to Matt's RSS feed. His email address is mhamblen@computerworld.com.

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Comments

Anthony Thomas

1

From what we can see from the development of BB 10 to be released next year, it looks like this could be a game changer. The iPhone 5 is a rather "boring" and non-revolutionary device, and Windows Phone 8 is not terribly awe-inspiring either, so RIM is in with a great shot to turn things around.

Hopefully they do make it because continuing to have the variety on the market would be great.

Like others, I'm seriously looking forward to BB10 in 2013... would certainly be switching to BlackBerry that's for sure.

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