RIM's Q2 Performance Poor, Plans Layoff

By

While Blackberry maker Research In Motion’s (RIM) first quarter number were much lower than expected, the second quarter projections are even worse. According to a BusinessInsider report, the BlackBerry maker expects second quarter revenues to be almost $1 billion below consensus, sending the stock 15 percent down.

As per the report, the company is planning a layoff to streamline operations across the organization. BusinessInsider reporter Dan Frommer wrote that “RIM's turnaround is going slower than expected, and product delays are leading to low device shipments and revenue.” Financial reports indicate that last quarter RIM shipped 13.2 million BlackBerries, below expectations.

Meanwhile, last quarter, the BlackBerry manufacturer said it shipped about 500,000 PlayBook tablets. However, the company does not provide any breakdown to show how many of those were sold to end users, Frommer wrote.

A press release statement from RIM’s co-CEO Jim Balsillie said, “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.”

He further added, “RIM's business is profitable and remains solid overall with growing market share in numerous markets around the world and a strong balance sheet with almost $3 billion in cash. We believe that with the new products scheduled for launch in the next few months and realigning our cost structure, RIM will see strong profit growth in the latter part of fiscal 2012.”

In the first quarter, RIM reported revenues of $4.9 billion while expectation was $5.15 billion. The company shipped 13.2 million units as against 13.5 million expected units. Likewise, in the second quarter, the BlackBerry maker reported revenues over $4.2 billion versus $5.46 consensus. Though the number of units shipped in this quarter were not provide, the expectation was 13.5-14 million units, according to BusinessInsider report.




Ashok Bindra is a veteran writer and editor with more than 25 years of editorial experience covering RF/wireless technologies, semiconductors and power electronics. To read more of his articles, please visit his columnist page.

Edited by Jennifer Russell
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Product Feed Management: What are the Best Strategies for E-commerce Success?

By: Contributing Writer    2/29/2024

In the dynamic world of e-commerce, the efficiency and effectiveness with which a company manages its online presence can be a critical factor in its …

Read More

Web3 in 2024 - What's the Story So Far?

By: Contributing Writer    2/26/2024

Is Web3 a thing yet? Click here to learn about the 2024 Web3 story so far.

Read More

Shabodi Accelerates Adoption of Network-Aware Applications with CAMARA API Enterprise Reference Implementation

By: Special Guest    2/16/2024

Shabodi, an Application Enablement Platform (AEP) provider unleashing advanced network capabilities in LTE, 5G, 6G, and Wi-Fi 6, announced they have l…

Read More

How Much Does Endpoint Protection Cost? Comparing 3 Popular Solutions

By: Contributing Writer    2/2/2024

Endpoint protection, also known as endpoint security, is a cybersecurity approach focused on defending computers, mobile devices, servers, and other e…

Read More

What Is Databricks? Simplifying Your Data Transformation

By: Contributing Writer    2/2/2024

Databricks is an innovative data analytics platform designed to simplify the process of building big data and artificial intelligence (AI) solutions. …

Read More