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Research In Motion Stock

December 17, 2011 by · Comments Off on Research In Motion Stock 

Research In Motion Stock, RIM’s most recent quarterly report wasn’t a total disaster, but it wasn’t good, either. The company reported revenue of $5.2 billion, which is up 24% from the previous quarter, but net income was down 71% from the year-ago quarter at $265 million. The revenue breakdown for the quarter was approximately 79% for hardware, 19% for service, and 2% for software and other revenue.

The company shipped 14.1 million BlackBerry smartphones–in line with expectations–and 150,000 PlayBook tablets. RIM says that the total number of subscribers has risen to about 75 million, up 35% from last year.

That’s where the good news stops.

During a call with press on Thursday, RIM dropped a bomb: its next-generation smartphone won’t ship during the first half of the year, as expected. Instead, it won’t be ready until “the latter part” of 2012.

The reason for the delay, said RIM, is because it has chosen a dual-core LTE chipset for these new phones that won’t be available until mid-June. RIM believes this new chip is a vital component for its next-generation of smartphones.

Research In Motion

December 3, 2011 by · Comments Off on Research In Motion 

Research In Motion, Research In Motion Ltd., the struggling maker of the BlackBerry phones, is writing off much of its inventory of PlayBook tablets, since it has to sell them at a deep discount.

The Canadian company on Friday said it’s taking a pre-tax charge of $485 million in the just-ended quarter to account for the declining value of the tablets. The model originally priced at $500 now costs $200.

A year ago, co-CEO Jim Balsillie said pent-up interest in the PlayBook was “really overwhelming.” Companies are looking for an equivalent of the iPad of corporate use, he said.

In March, Balsillie said “The launch of the PlayBook may well be the most significant development for RIM since the launch of the of the first BlackBerry device back in 1999.”

But when the tablet went on sale in April, reviewers puzzled over the lack of email software, saying the device seemed half-baked. RIM now promises updated software in February.

RIM said it shipped 150,000 PlayBooks to stores and distributors in the fiscal third quarter, which ended November 26. “Sell-through,” or the number actually bought by users, was slightly higher, reflecting sales of tablets shipped earlier. It shipped 500,000 in the first quarter and 200,000 in the second.

Apple Inc., meanwhile, sold 11.1 million iPad tablets in its most recent quarter, which ended Septtember 24.

RIM Co-CEO Mike Lazaridis said RIM is still committed to the PlayBook, despite its issues.

RIM also said it sold 14.1 million BlackBerrys in the third quarter, slightly better than analysts expected. It then expects sales to fall slightly in the current quarter, roughly in line with analysts’ expectations.

The company provided preliminary revenue and profit figures for the third quarter that were lower than it previously projected, but not a surprise to analysts.

RIM said it expects earnings at the “low to mid point” of the $1.20 to $1.40 per share it previously forecast. Analysts polled by FactSet have on average been expecting $1.18 per share.

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