RIM fails to blow away fans

By Scott Moritz

Research in Motion (RIMM) missed its target and guided down its profit forecast for the current quarter.

Shares of the BlackBerry maker sank 11% after the company posted adjusted earnings of 84 cents a share, which compares with adjusted earnings of 39 cents a share in the year ago period. Sales for the fiscal first quarter were $2.24 billion compared to $1.08 billion last year.

Analysts had expected a pro forma profit of 85 cents on $2.27 billion in sales.

Looking ahead, RIM expects adjusted profit to be in the range of 84 and 89 cents a share on sales of $2.60 billion.

Analysts were looking for a 90 cent pro forma profit on $2.44 billion in sales.

“We are pleased to report another record quarter with revenue increasing 107% as the popularity of the BlackBerry platform continued to spread in business, government and consumer segments,” Co-CEO Jim Balsillie said in a press release.

The results disappointed investors who had recently sent the stock to record levels betting on strong growth in smartphone sales and a blowout quarter.

“The top line looks pretty solid, but what I think we may be seeing is a lot higher spending on sales and marketing,” says one Wall Street analyst referring to RIM’s efforts to counter the impact of Apple’s iPhone debut next month.

RIM says it added 2.3 million net new BlackBerry subscribers in the quarter for a total subscriber count of 16 million.

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Filed under Internet, Mobile

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If Apple’s iPhone is going to destroy RIM and BlackBerry, why does BlackBerry’s marketshare grow at a faster rate then Apple’s? They are here to stay.

Posted By Cody, Ogden Utah : July 2, 2008 11:03 am

Why is everyone so happy to blast RIMM back to the stone age?
They’re a market leading company that will continue to innovate and provide a great product.
Apple didn’t get rid of Microsoft, why do you think RIMM will just dissappear?

Posted By Peter Bjork, Berverly Hills, CA : June 26, 2008 4:55 pm

Oh please, this company is doing just fine, it’s those yahoo’s on Wall St. that you need to be worried about. RIM more than doubled their revenue from last year and the results “dissapoint?” Get real.

Posted By RDW : June 26, 2008 2:21 pm

You don’t want to own this company as it starts to get ground down by improved offerings from Apple. Also, in 2009 you will see the Android phone from Google.

Posted By Bob New York, New York : June 26, 2008 7:40 am

This is only the beginning of the end of the story that is RIMM. Apple’s iPhone will continue to erode their position in the smartphone market. Sell RIMM while you still have a profit, people.

Posted By Steve, SF, CA : June 25, 2008 5:58 pm

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