RIM Earnings Fall
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RIM (NASDAQ:RIMM) is a company in transition. The Blackberry maker is shifting to new versions of its Blackberry OS and trying to build a market for its Playbook tablet.
If RIM's second quarter fiscal 2012 results are an indication, it's a transition that is still an extremely challenging one. RIM reported second quarter revenues of $4.2 billion, which is a 10 percent decline on a year-over-year basis. GAAP Net Income plummeted to $329 million down from $797 million a year ago.
RIM blamed lower than expected shipments of Blackberry phones and PlayBook tablets for the shortfall. For the quarter, RIM shipped 10.6 million smartphones and 200,000 PlayBook tablets. RIM also had higher costs during the quarter as it spent $780 million as part of its contribution to a $4.5 billion bid for Nortel's patents.