RIM down over 21 percent on Wall Street

Jun 17, 2011

Shares in Research in Motion plunged on Wall Street Friday after the BlackBerry maker lowered its outlook for the year and said it would be cutting jobs.

Shares in the Waterloo, Ontario-based RIM sank 21.45 percent, or $7.58, to close at $27.75. RIM shares have lost around 50 percent of their value since the beginning of the year.

Friday's drop came a day after RIM said it expected earnings per share for fiscal 2012 to be between $5.25 and $6.00, sharply less than the $7.50 forecast previously.

RIM, which is facing increased competition from Apple's iPhone and mobile phones running Google's Android software, also announced Thursday it would be cutting jobs this quarter as part of a plan to "streamline operations."

It did not say how many jobs would be eliminated.

The Canadian handset maker posted a net profit of $695 million, or $1.33 per share, in the first quarter of its 2012 fiscal year, compared with $769 million, or $1.38 per share, a year ago.

Revenue grew 16 percent to $4.9 billion, short of the $5.1 billion expected by Wall Street analysts.

RIM said it shipped 13.2 million BlackBerry smartphones during the quarter, down from 14.9 million last quarter, and 500,000 of its new BlackBerry Playbook tablet computers, RIM's answer to Apple's iPad.

"Fiscal 2012 has gotten off to a challenging start," RIM co-chief executive Jim Balsillie said in a statement.

"The slowdown we saw in the first quarter is continuing into the second quarter, and delays in new product introductions into the very late part of August is leading to a lower than expected outlook in the second quarter."

Explore further: Alibaba surges in Wall Street debut (Update)

add to favorites email to friend print save as pdf

Related Stories

RIM shares down on BlackBerry revenue miss

Mar 24, 2011

(AP) -- Research in Motion Ltd.'s stock took a hit Thursday after the maker of the BlackBerry reported revenue from its recently concluded quarter that fell short of expectations and warned that sales in ...

BlackBerry maker slashes short-term sales forecast

Apr 28, 2011

(AP) -- Research In Motion Ltd., the maker of the BlackBerry, on Thursday cut its sales and earnings forecasts for the current quarter, saying it's shipping fewer and cheaper phones than it had expected.

Phone rivalry drives down RIM earnings

Jun 16, 2011

(AP) -- BlackBerry maker Research In Motion Ltd.'s quarterly results on Thursday provided fresh evidence of the company's struggles to come up with a device to compete with the iPhone and smartphones running ...

Research in Motion profit jumps 45 percent

Dec 16, 2010

(AP) -- Research in Motion Ltd., the maker of the BlackBerry, on Thursday said its third-quarter earnings jumped 45 percent as sales keep surging overseas despite tough competition in the smart-phone market.

RIM's 2Q profit falls on charges, outlook weak

Sep 24, 2009

(AP) -- BlackBerry maker Research In Motion Ltd. reported a drop in fiscal second-quarter profit Thursday because of charges for a patent settlement and said revenue for the current quarter will fall below ...

Research In Motion's 1Q profit jumps 20 percent

Jun 24, 2010

(AP) -- BlackBerry maker Research In Motion Ltd. posted a 20 percent jump in net income for the most recent quarter, but the company's revenue and subscriber growth disappointed investors.

Recommended for you

Alibaba makes Wall Street debut

Sep 19, 2014

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

Alibaba IPO to boost employee fortunes to $8 bn

Sep 19, 2014

Employees of Chinese e-commerce giant Alibaba will see their fortunes swell to nearly $8 billion as the company prepares a massive US stock offering that could be valued at $25 billion.

Alibaba mega IPO caps founder Jack Ma success tale

Sep 19, 2014

When Jack Ma founded Alibaba 15 years ago he insisted the e-commerce venture should see itself as competing against Silicon Valley, not other Chinese companies. That bold ambition from a time when China was ...

User comments : 0