Thu Jun 16, 2011 7:02pm EDT
(Corrects RIM’s full year gain foresee to $5.25-$6 a
share, from $4.25-$6 a share)
* Q1 EPS $1.33, income of $4.9 bln
* Ships 13.2 mln BlackBerrys, 500,000 PlayBook tablets
* Shares dump fifteen pct after-hours
* Announces share buyback, expects pursuit cuts
(Adds researcher quote, details)
By Alastair Sharp
TORONTO, Jun sixteen (Reuters) – Research In Motion’s (RIM.TO)
(RIMM.O) quarterly distinction forsaken as good as income longed for a own
limp forecast, forcing a BlackBerry builder to condense its
outlook as good as promulgation a shares down fifteen percent upon Thursday.
Facing heated vigour from Apple (AAPL.O) as good as Google
(GOOG.O) in a smartphone market, RIM additionally warned that its
latest models would not strike U.S. stores until good in to the
valuable back-to-school selling season. The check will likely
add to a beating felt by investors after RIM’s botched
launch of a PlayBook inscription mechanism this spring.
“The association is starting in to a endless hole of a transition, and
even if they get a latest model, it’s a latest indication upon a old
platform,” pronounced BGC Partners researcher Colin Gillis, a single of many
who has criticized RIM’s product expansion pipeline.
RIM has betrothed smartphones subsequent year using upon a new
QNX platform, right away featured in a PlayBook, though usually after it
releases a array of inclination with an upgraded chronicle of the
current handling system. But even those upgrades to a Bold
business workhorse, latest Torch as good as Storm models won’t go upon sale
until late August, RIM pronounced upon Thursday.
That check pushed RIM to foresee shipments of in in in in between 11
million as good as 12.5 million smartphones in a stream quarter,
sharply reduce than a some-more than fourteen million eyed by analysts.
RIM shipped 13.2 million BlackBerrys in a 3 months to
May 28, blank a own estimate.
It shipped 500,000 PlayBook tablets in a 6 weeks after
its Apr launch, surpassing a normal researcher foresee of
366,000. Even so, a series represents a tiny fragment of
Apple’s iPad sales.
RIM, once a scapegoat for corporate mobile communications, has
lost attract as Apple’s iPhone as good as after Google’s Android
operating complement altered a manners of a game.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic upon pass RIM metrics r.reuters.com/ner22s
As RIM struggles, speak of shift during tip [ID:nN27162387]
Instant perspective [ID:nN16222773]
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
JOB CUTS
Up opposite that competition, analysts had suspicion it was
only a make a difference of time prior to RIM deserted a $7.50 a share
earnings opinion for a year to late Mar 2012. On Thursday,
it did only that, recalibrating expectations to in in in in between $5.25
and $6 a share.
In a taciturn admission that it needs to do some-more to play
catch-up, a association pronounced it skeleton to cut jobs as good as concentration its
resources upon accelerating a product pipeline. The association did
not divulge a series of pursuit cuts, though indicated that it
intends to proceed this reorder immediately.
“RIM is in this incident since a phones aren’t
competitive as good as they’re not rival since they’ve fallen
behind upon expansion as good as product cycle,” pronounced Charter Equity
analyst Edward Snyder. “Now they need to accelerate a models
to market, though during a same time they have been slicing staff.”
To assistance progress a sagging share price, RIM intends to buy
back up to 5 percent of a superb shares as good as pronounced the
board did not design that a spending would have a negative
impact a expansion plan. Its full year foresee for gain per
share did not work out any stroke of a share buyback.
BY THE NUMBERS
RIM expects gain in a stream entertain of in in in in between 75
cents as good as $1.05, neatly reduce than a already pessimistic
average perspective of $1.40. It sees income of in in in in between $4.2 billion
and $4.8 billion.
The Waterloo, Ontario-based company’s net distinction forsaken to
$695 million, or $1.33 a share, upon income of $4.9 billion.
Analysts had approaching distinction of $1.32 a share upon income of
$5.1 billion.
A year ago RIM warranted $1.38 a share upon income of $4.24
billion.
The association pronounced a sum margins, between a top in
the smartphone industry, will expected trip around 5 percentage
points to a little 39 percent in a stream quarter.
Shares of RIM — that reported a formula after a close
– fell to scarcely a five-year low during a unchanging session
after a association pronounced a comparison senior manager had taken medical
leave. [ID:nN16216489]
RIM shares fell some-more than fifteen percent serve to $29.84 in
trade after a shutting bell in a United States.
(Additional stating by Euan Rocha, Allison Martell and
Trish Nixon in Toronto as good as Sinead Carew in New York)
Link this
Share this
Digg this
Email
Reprints
