Shares of Research in Motionlost 4% after hours Tuesday after the company reported revenues that weren’t up to Wall Street’s expectations.
RIM’s pro forma earnings of 71 cents a share beat estimates of 65 cents, but revenues of $405 million were shy of $410 million forecasts. RIM’s pro forma earnings excluded a charge for the company’s $450 million payment to settle a patent dispute with NTP; without that charge and a tax gain, the company lost a penny a share in the quarter, or $2.6 million. RIM’s forward guidance of $430-$455 million revenues also disappointed, coming in at the low end of analysts’ estimates.
With investors already nervous about growing competition and a possible threat from Microsoft’snew Windows Mobile release, RIM’s quarterly report is likely to add to those fears.
Also after the close, IBMsaid it will expense stock options, and Siebelwarned.
Stocks rose again Tuesday after Fed Chairman Alan Greenspan made soothing comments about oil prices.
The Nasdaq rose 8 to 1999, the S&P 500 added 5 to 1181, and the Dow climbed 37 to 10,458. Volume declined to 1.87 billion shares on the NYSE, but rose to 1.7 billion on the Nasdaq. Advancers led 18-14 on the NYSE, and 16-14 on the Nasdaq. Upside volume was 60% on the NYSE, and 56% on the Nasdaq. New highs-new lows were 74-38 on the NYSE, and 50-119 on the Nasdaq.
Napsterjumped 9% after the company raised guidance, and Secure Computingrallied 13% on its forecast.
Mobility Electronicssoared 22% on investments from Motorolaand Radio Shack.
RSA, Visual Networks, Virage, MRO Softwareand Altirisfell on warnings.