Shares of Research in Motion lost 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’s new Windows Mobile release, RIM’s quarterly report is likely to add to those fears.
Also after the close, IBM said it will expense stock options, and Siebel
warned.
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.
Napster jumped 9% after the company raised guidance, and Secure Computing
rallied 13% on its forecast.
Mobility Electronics soared 22% on investments from Motorola
and Radio Shack
.
RSA , Visual Networks
, Virage
, MRO Software
and Altiris
fell on warnings.
