Beleaguered RIM misses badly on revenue, EPS, unit shipments; Former half-CEO Balsillie resigns; CTO, COO also out

Research In Motion today reported fourth quarter results for the three months and fiscal year ended March 3, 2012 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

• $2.1 billion in cash, cash equivalents, short-term and long-term investments at the end of the quarter, which increased by approximately $610 million in the quarter
• Cash flow from operations of approximately $1.1 billion, up from approximately $900 million in Q3
• Revenue of $4.2 billion, down 19% from the third quarter
• GAAP net loss in Q4 of $125 million or $0.24 per share diluted; adjusted net income of $418 million or $0.80 per share diluted
• BlackBerry smartphone shipments of 11.1 million in Q4, down 21% from Q3
• RIM to discontinue providing specific quantitative guidance
• RIM provides update on organizational changes

Revenue for the fourth quarter of fiscal 2012 was $4.2 billion, down 19% from $5.2 billion in the previous quarter and down 25% from $5.6 billion in the same quarter of fiscal 2011. The revenue breakdown for the quarter was approximately 68% for hardware, 27% for service and 5% for software and other revenue. During the quarter, RIM shipped approximately 11.1 million BlackBerry smartphones and over 500,000 BlackBerry PlayBook tablets.

Analysts had expected earnings of 83-cents per share on revenue of $4.56 billion.

Beleaguered Research In Motion

The company expects continued pressure on revenue and earnings throughout fiscal 2013. Due to a desire to focus on long term value creation and the current business environment, RIM will no longer provide specific quantitative guidance. Some of the factors contributing to this include, ongoing weakness in the Company’s U.S. smartphone business, an increased focus on selling BlackBerry 7 smartphones to grow the subscriber base in advance of the BlackBerry 10 launch, increasing competitive pressure in the Company’s international markets and the introduction of certain new lower tier service pricing initiatives and a higher mix of sales coming from entry level products.

Jim Balsillie, former half-CEO of the Company, has resigned as a Director on the Company’s Board. “As I complete my retirement from RIM, I’m grateful for this remarkable experience and for the opportunity to have worked with outstanding professionals who helped turn a Canadian idea into a global success,” Balsillie said in the press release.

“On behalf of the Board and everyone at RIM, I would like to thank Jim for his 20 years of service to RIM,” said Barb Stymiest, Chair of RIM’s Board of Directors. “His energy, drive and enthusiasm helped build one of the most successful technology companies of our time.”

MacDailyNews Take: Bwahahahahaha! Oh, boy, Barbie just made us spit take beer all over the place! For the truth, replace “his energy, drive and enthusiasm helped build one of the most successful technology companies of our time” with “his slack-jawed, deer-in-the-headlights, NHL-distracted inaction helped create yet another rotting carcass of Apple roadkill.”

In addition, David Yach will be retiring from his role as CTO, Software after 13 years with the Company and after 4 years with the company and following an open dialogue on the future of global operations, Jim Rowan, COO, Global Operations, has decided to pursue other interests. The Company is currently undertaking a search to hire a single COO with responsibilities to run the Company’s operations.

“RIM would like to thank David Yach and Jim Rowan for their years of service and many contributions to RIM,” said Thorsten Heins, President and CEO, in the press release. “We wish them well in their future pursuits.”

Source: Research In Motion

See also:
• Forbes: The Gruesome Context of RIM’s Miss
• AllThingsD: RIM Blows It Again
• Associated Press: A comparison of smartphone and tablet shipments by Research in Motion Ltd. and Apple Inc.

MacDailyNews Take: Dinotastic, DCW!

RIM. Dead company walking.MacDailyNews Take, August 5, 2010

The longest Amateur Hour since Palm, Inc. slogs on for a little while longer…

Related articles:
Beleaguered RIM looking for developer to ‘create exciting iOS enterprise apps’ for Apple iPhone, iPad – March 22, 2012
Beleaguered RIM BlackBerry loses top spot to Apple’s iPhone in Canada – March 22, 2012
Beleaguered RIM names new CEO; half-CEOs step down amid struggle to answer Apple – January 22, 2012


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