BlackBerry maker RIM's stock rebounds after results

Sep 29, 2012
BlackBerry maker Research in Motion's stock rallied sharply a day after reporting a narrower-than-expected loss, as analysts debated whether the smartphone maker is poised for a rebound.

BlackBerry maker Research in Motion's stock rallied sharply Friday a day after reporting a narrower-than-expected loss, as analysts debated whether the smartphone maker is poised for a rebound.

RIM, whose shares hit multiyear lows earlier this year, climbed 5.05 percent to end at $7.50, after paring some early gains. Still, the stock remains a far cry from 2008 highs above $140.

The Canadian firm said Thursday it lost $235 million in the past quarter, its third consecutive loss, although not as bad as analysts had forecast.

Despite the jump in RIM's , many analysts remained skeptical on the prospects for RIM, which has delayed until next year its new BlackBerry 10 platform, which aims to compete against the and devices using 's system.

"RIM has received positive feedback from carriers; however, we believe this new launch will need to be an absolute home run for RIM to stay in the game," said Brian White at Topeka Capital Markets.

Daniel Ernst at Hudson Square Research said the modest rise in the number of RIM subscribers was positive. "We continue to believe it's too late for BB10, and that a strategic sale is a better long-term option than independence," he added.

Ehud Gelblum at Morgan Stanley said RIM "appears to be driving (subscribers) by selling devices below cost," and added that this "shrinks the pool of potential BB10 'upgraders.'"

Thorsten Heins, president and chief executive of the Ontario-based firm, said Thursday that the BlackBerry 10 platform "is on track to launch in the first calendar quarter of 2013."

Heins told television on Friday that "there are many more steps to come until we launch BlackBerry 10, and then I think that the market will be very excited by what BB 10 has to show and what it will deliver to its customers."

He added that the new phones would offer "a fantastic keyboard experience" with the traditional and that another model would have a full touchscreen.

BlackBerry 10 had been set to launch in late 2012, but RIM announced a delay earlier this year that prompted grim predictions for the company.

RIM said revenues in the fiscal second quarter rose two percent from the prior quarter to $2.9 billion, a figure some 31 percent lower than a year earlier.

RIM said it shipped 7.4 million BlackBerry smartphones in the period and 130,000 BlackBerry PlayBook tablets.

The company's global subscriber base rose to 80 million and the company's cash position edged up to $2.3 billion.

Explore further: New iPhones deliver big profits for Apple

add to favorites email to friend print save as pdf

Related Stories

A look at RIM's much-delayed BlackBerry 10

Jun 28, 2012

On Thursday, BlackBerry maker Research In Motion Ltd. announced yet another delay to its upcoming BlackBerry 10 system, which the company considers crucial to its future. It's now expected in the first quarter ...

A look at RIM's much-delayed BlackBerry 10

Jul 10, 2012

Research in Motion Ltd. faced disgruntled investors Tuesday, less than two weeks after announcing yet another delay to its upcoming BlackBerry 10 system, which the company considers crucial to its future. It's now expecte ...

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.

RIM releases belated new PlayBook software

Feb 21, 2012

Research In Motion released a free upgraded operating system for its struggling Playbook computer tablet on Tuesday, almost a year later than it first said it would.

Recommended for you

New iPhones deliver big profits for Apple

9 minutes ago

The new big-screen iPhones helped propel Apple's profit and revenue in the past quarter, as the California tech giant delivered stronger-than-expected results.

Facebook sues law firms, claims fraud

1 hour ago

Facebook is suing several law firms that represented a man who claimed he owned half of the social network and was entitled to billions of dollars from the company and its CEO Mark Zuckerberg.

IBM 3Q disappoints as it sheds 'empty calories'

1 hour ago

IBM disappointed investors Monday, reporting weak revenue growth again and a big charge to shed its costly chipmaking division as the tech giant tries to steer its business toward cloud computing and social-mobile ...

MasterCard, Zwipe announce fingerprint-sensor card

Oct 18, 2014

On Friday, MasterCard and Oslo, Norway-based Zwipe announced the launch of a contactless payment card featuring an integrated fingerprint sensor. Say goodbye to PINs. This card, they said, is the world's ...

User comments : 0