Beleaguered RIM misses on revenue, issues grim guidance, stock drops again

“RIM reported quarterly earnings of $1.27 a share, topping forecasts, but the good news ends there,” Mark Gongloff reports for The Wall Street Journal. “Revenue missed expectations, and fourth-quarter guidance was grim, and the stock is tumbling after hours.”

“RIM shares are down more than 6% in after-hours trade,” Gongloff reports. “Including this move, the stock is down nearly 80% from its high in February.”

Gongloff reports, “The company said it expected fiscal fourth-quarter earnings of between 80 cents and 95 cents a share, which is well below even the $1.15 unadjusted figure analysts expected, according to FactSet… It also said it expected to ship between 11 million and 12 million BlackBerry units — again, disappointing. Expectations were closer to 13 million.”

Read more in the full article here.

MacDailyNews Take: DCW, but just barely.

25 Comments

    1. All this could’ve been predicted the minute people played with an iPhone and decided it was OK to ditch the physical keyboard.

      And any simple BACN analysis paints RIM as a dead man walking shortly thereafter.

    1. Some cancers grow very fast, too.
      It all goes to show that fast growth is a lot less important than smart growth. RIM’s growth was primarily in areas that produced little or no revenue. Contrast that with Apple, who has reaped the lion’s share of mobile sector profits with the growth of the iPhone and iPad.

  1. QUESTION:
    Will R.I.M. survive 2012 intact?

    My answer: No.
    The effort to bring out son-of-PlayBook by the end of 2012 will sap their assets to the point of vulnerability, at which point they will break up. I predict. 😎

    Question:
    Where is actual competition with the iPad?
    Answer:
    Nowhere in sight, not yet.
    … And please don’t make me pee my pants laughing by saying it will be the Windows 8 tablet in 2012. I may have to charge you laundry fees.

    1. Disagree .. in part
      In this business, if you do not know where you are going to be in the next 5 years, you are history.
      You can make zillions on your current products, fine, but what’s next.
      RIM is still making money … but slow death is inevitable if nothing substantial changes.

  2. RIMM also revealed that they would be delaying the release of Blackberry OS 10 until late 2012. Since pretty much all of their new development hinges on this, and we can assume that iOS and Android will not be standing still, I think we can safely stick a fork in RIM. Look for the co-CEO’s to be sacked by February.

  3. RIMM’s earnings of $1.27 a share – is that US or Canadian?

    For most of my memory, the Canadian dollar was worth a lot less than the US dollar, but these days it’s worth more.

    Discuss.

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