Beleaguered RIM shares halted, stock falls 13%: CEO sees loss this quarter

“Shares of Research in Motion (RIMM) [were today] halted pending a news announcement,” Tiernan Ray reports for Barron’s.

“In a statement, CEO Thorsten Heins said that he was providing a business update, as previously promised. He said RIMM will ‘likely have an operating loss’ for the fiscal Q1 that ends this month. Analysts have been modeling 42 cents per share in non-GAAP profit on operating income of $264 million, according to FactSet,” Ray reports. “Heins said the company’s financial performance will be ‘challenging’ for the next few quarters.”

Ray reports, “The shares have resume trading and are down $1.39, or almost 13%, at $9.82.”

Read beleaguered RIM’s full statement here.

MacDailyNews Take: Forget Thorsten Heins, beleaguered RIM would be just as well off with Thurston Howell, III at the helm (maybe even a bit better off).

Seriously, though, Heins’ one real duty is simply to contain the mess as well as possible until a sucker, er… buyer can be found, if ever. RIM is the Exxon Valdez of the smartphone industry.

Related articles:
Beleaguered RIM to eliminate 6,500 employees by early next year, sources say – May 29, 2012
Beleaguered RIM slips amidst talk of unsold inventory write-down – May 29, 2012
Beleaguered RIM to axe at least 2,000 jobs – May 27, 2012
Beleaguered RIM’s head of global sales departs BlackBerry maker – May 23, 2012
Beleaguered RIM misses badly on revenue, EPS, unit shipments; Former half-CEO Balsillie resigns; CTO, COO also out – March 29, 2012
Another senior executive exits beleaguered Research In Motion – October 28, 2011
Two more senior staff exit beleaguered BlackBerry maker RIM – September 29, 2011

15 Comments

  1. I still remember the day the first iPhone was announced in January. I was at a meeting and this guy referenced the Apple phone. He pulled out his blackberry and said with pride, “You can’t tell me they’ll be able to come up with a phone anywhere near as great as this one.”

  2. It’s taken a lot longer for the Exxon Valdez to circle the bowl. In March 2012, Dong Fang Ocean (formerly Exxon Valdez) was purchased by Global Marketing Systems, Inc. for scrap at an estimated US$16 million and sailed under her own power to a ship breaker in Singapore where she will be dismantled.

  3. It’s just a shame because RIM does have some great technologies, they just didn’t know how to leverage them (or leverage them at the right time). They’ve finally pulled their heads out of their rears and released BES for other phones besides the BB. BES is actually a great product for managing mobile devices and is nearly unparalleled in terms of capability. Had they done this 5 years ago and shifted their focus in markets they couldn’t compete in (i.e. consumer phones), things might have been different. Likewise, QNX was a great acquisition, but at the wrong time. They needed QNX in 2007 when they should have abandoned the BB’s craptastic OS from a bygone era. QNX is a great platform… the first time I saw it boot into a GUI with a browser and a number of other tools, all off of a single 1.44MB floppy back in 1998, I was stunned. It would be a shame to see an efficient, speedy and flexible UNIX-like OS go down the tubes with RIM.

  4. …AN ACQUISITION BID

    Facebook might by RIM for its FacePhone project.

    Although I hope such a venture would end as well as Kin with Microsoft and Palm with HP.

  5. I think it’s really a rather sad reflection on how volatile the tech industry is. All of these flounderers – Dell, RIM, Nortel, HP to an extent – are (or were) good companies providing employment and growth to the economy. But they’re always at the mercy of The Next Great Idea and this emphasizes that in any industry resting on your laurels is dangerous.
    I feel bad because there are lots of honest people who are losing jobs, lots of people with dreams that are crushed.

    1. The real HP lives on, it’s just known as Agilent.

      A few years back, HP split itself in two. The part that kept the HP name only does computers. The part that was all teh instrumentation and such became Agilent.

  6. RIM will be just fine as there is a Knight in White Armour that will buy them out and continue on with the most secure mobility platform in the World. Microsoft saved Apple in 1998 and someone will do the same with RIM as 75 million subscribers is nothing to sneeze at if you know anything about marketing.

    1. Microsoft did NOT ‘save’ Apple. Stop passing on this stupid lie.
      They invested 150 million at a time when Apple was worth around $8 billion. They did this because it was part of the lawsuit settlement and a way of Microshit avoiding monopoly and other laws.

  7. Foolixh little man u r! I was a stockbroker back in the day and yes my little friend big bad Microsoft did in fact keep Apple solvent as the assets listed on their balance sheet were of no use to anyone hence book value for Apple was a bit north of 1.3 billion. This said, book value is also subjective as there is only real value if you can create a market for what makes up your book value. For the record, I use Apple products ( probably more than you do) hence not a Basher of Apple but certainly not an Apple Kool-Aid drinker either.
    Let me remind you that most tech Co’s have their day in the sun and this is Apple’s day in the sun. Not so long ago Gateway, Dell, and HP ran the gauntlet as did Sony and today well…. Not so much.

    FYI any company can do well if they get a 15 year sabitical in paying dividends to their shareholders as Apple did. Microsoft stock would trade north of 10K per share had they not paid dividends or split 22 times.

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