RIM Faces Layoff as Revenues Disappoint
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Research in Motion (RIM) posted year-over-year revenue growth of 16 percent for its first quarter of fiscal 2012 when it announced its results Thursday afternoon, but that failed to satisfy investors, especially in light of revising downward its guidance for the rest of the year and announcing layoffs.
Instead, RIM's (NASDAQ: RIMM) shareholders pummeled the company's stock on Friday, driving its share price as low as $27.08 -- a low for the past year and a nearly 21 percent decline on the day.
"Fiscal 2012 has gotten off to a challenging start. The slowdown we saw in the first quarter is continuing into Q2, 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," Jim Balsillie, RIM co-CEO, said in a statement.