RIM Misses Targets, New Blackberry 10 Phones Delayed
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It has been a tough quarter and a tough year for Research in Motion (RIM). The BlackBerry vendor reported third quarter fiscal 2012 results late Thursday, showing a year-over-year revenue decline as they missed expectations.
For the quarter, RIM reported revenue of $5.2 billion which is a 6 percent year-over-year decline. Net Income for the third quarter was reported at $265 million or $0.51 per share, a staggering decline from the $911 million or $1.27 per share the company reported for the same quarter last year. Going forward, the company provided fourth quarter guidance for revenues to be in the range of $4.6 billion to $4.9 billion.
RIM also delayed the launch of their new BlackBerry 10 phones until the second half of calendar 2012, due to supply concerns over the chips that will power the devices.
RIM co-CEO Jim Balsillie noted during the company's earnings call, that product launch delays increased competition in the smartphone and tablet markets, and the October service interruption impacted RIM's sell-through in the quarter. "In Q3, we sold through approximately 13 million units, which was below our expectations," Balsillie said. "RIM's U.S. business is particularly weak."