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RIM shares up 14 percent as 2Q results beat expectations

updated 05:12 pm EDT, Thu September 27, 2012

RIM sees net loss of $235 million

Research in Motion posted a $235 million operating loss for the second quarter of this year, but shares in the company rose as the BlackBerry maker reported figures that beat analysts expectations. The Wall Street Journal reports that RIM stocks were up 14 percent today on news that RIM's subscriber base has grown even as it struggles to maintain a prominent position in light of increased competition from Apple, Samsung, and other smartphone manufacturers.

RIM's $235 million loss for the past quarter is swing of more than half a billion dollars from the same quarter for the year previous, when it posted a net income of $329 million. Revenues fell from $4.2 billion for the same quarter last year to $2.9 billion for this quarter. That $2.9 billion figure, though, represents an increase of $100 million from the first quarter of this year. RIM 's cash position increased to $2.3 billion at the end of the last quarter.

Sixty percent of RIM's revenues for the quarter came from hardware sales, 35 percent from service, and five percent from software and other revenues.

In the last quarter, RIM shipped approximately 7.4 million BlackBerry smartphones and about 130,000 BlackBerry PlayBook tablets.

RIM's subscriber base grew by two million this past quarter, to 80 million in total. The company continues to experience solid growth in developing areas, even as it struggles to retain relevance in the United States and Europe.

Thorsten Heins, RIM President and CEO, said that the results show that "RIM is progressing on its financial and operational commitments during this major transition." In an attempt to return to profitability, RIM has been streamlining manufacturing and laying off workers to eliminate unprofitable operations and shrink the range of devices the company offers.

RIM executives say that the company is still on track to release the newest version of its operating system, BlackBerry 10, and the new devices that will run it. The BlackBerry 10 devices -- one a touchscreen-only model and the other featuring a hardware QWERTY keyboard -- are expected to debut early next year.



By Electronista Staff
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