RIM: higher 4Q profit as subscriber base grows

Mar 31, 2010 By ROB GILLIES , Associated Press Writer
In this Feb. 18, 2010 photo, a BlackBerry Storm2 smartphone is displayed at the Mobile World congress in Barcelona, Spain. BlackBerry maker Research In Motion reports quarterly financial results Wednesday, March 31, 2010. (AP Photo/Manu Fernandez)

(AP) -- Research In Motion said its fiscal fourth-quarter earnings jumped 37 percent as its BlackBerry subscriber base grew and smart phone shipments increased.

Canada-based Research In Motion Ltd. said Wednesday that its for the December-February period was $710.1 million, or $1.27 per share. That is up from $518.3 million, or 90 cents per share, a year earlier.

Revenue rose 18 percent to $4.08 billion, short of the $4.31 billion expected by analysts surveyed by Thomson Reuters.

The net income was nearly in line with analysts' predictions of $1.28 per share.

RIM said it added nearly 5 million net subscriber accounts in the quarter, bringing the total to more than 41 million.

For the current period, it expects earnings of $1.31 to $1.38 per share, above analyst expectations.

Shares of Research in Motion, which is based in Waterloo, Ontario, dropped more than 5 percent to $70.27 in after-hours trading after the report came out. Earlier, the stock closed down 95 cents, or 1.3 percent, at $73.97.

"These are not terrible numbers, but they certainty missed the high end of expectations," said Duncan Stewart, director of research and analysis at DSam Consulting.

"It's by no means a sign that the wheels have fallen off ."

Nick Agostino, an analyst with Mackie Research Company, said the averaging selling price of $325 could suggest that Apple's is cutting into RIM's North American business.

Agostino said the stock rang up in recent weeks and some were expecting better results.

"It's a little bit of a mixed bag," Agostino said.

RIM had 50.3 percent of the smart phone business in North America in 2009, down from 50.7 percent in 2008, according to Gartner.

Explore further: Sony forecasts $2B loss as smartphones lag (Update)

not rated yet
add to favorites email to friend print save as pdf

Related Stories

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 ...

RIM Profit Up Sharply, Says SEC Upgrades Probe

Apr 12, 2007

BlackBerry maker Research In Motion reports a sharply higher fourth-quarter profit, adding about a million subscribers and forecasting more growth for the upcoming quarter.

RIM 1Q profit tops view, shares wobble on outlook

Jun 19, 2009

(AP) -- BlackBerry maker Research in Motion Ltd. on Thursday reported a better-than-expected 33 percent jump in first-quarter profit as the company continues to boost market share among non-corporate customers.

RIM 3Q profit up 59 pct on record BlackBerry sales

Dec 17, 2009

(AP) -- BlackBerry maker Research In Motion Ltd. surprised Wall Street on Thursday as it reported a 59 percent increase in third-quarter income, boosted by new subscribers and record sales of its smart phones.

Research in Motion posts higher 4Q profit, sales

Apr 03, 2009

(AP) -- Shares of BlackBerry maker Research in Motion Ltd. soared more than 20 percent in after-hours trading Thursday after the company said its profit jumped in its fiscal fourth quarter, surpassing analysts' expectations. ...

Qualcomm stock tumbles on cautious forecast

Jan 27, 2010

(AP) -- Qualcomm Inc., whose chips and other technologies are used in vast numbers of cell phones, sounded a cautious note on the economy on Wednesday, saying a "subdued" recovery forced it to slightly dial ...

Recommended for you

Sony forecasts $2B loss as smartphones lag (Update)

20 hours ago

Sony expects its annual loss to swell to $2 billion and has canceled dividends for the first time in more than half a century after writing down the value of its troubled smartphone business.

Alibaba post-IPO structure gives insiders control

20 hours ago

Control over Alibaba Group will stay in the hands of founder Jack Ma and other company veterans after the Chinese e-commerce giant goes public on the New York Stock Exchange in a record busting share sale.

User comments : 0