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Winnipeg Free Press - PRINT EDITION
RIM losses not as bad as expected
BlackBerry maker's stock rises on results
eric risberg / the associated press archives RIM CEO Thorsten Heins says the company has made progress during a challenging transition. (CP)
TORONTO -- Research In Motion (TSX:RIM) reported a second-quarter loss of US$235 million on Thursday as revenue plunged compared with a year ago; however, the BlackBerry maker's results were not as bad as many investors expected.
The Waterloo, Ont.-based company, which keeps its books in U.S. dollars, said the loss amounts to 45 cents per diluted share, compared with a profit of $329 million or 63 cents per share a year ago.
However, excluding one-time costs, including cost cuts and job reductions, RIM posted an adjusted loss of $142 million or 27 cents per share.
Analysts had expected RIM to report a loss of about 47 cents per share, according to a poll from Bloomberg.
Revenue totalled $2.87 billion, down from $4.17 billion a year ago.
During the quarter, RIM said it shipped about 7.4 million BlackBerry smartphones and roughly 130,000 PlayBook tablets.
The results show RIM is making progress as it transitions to its next generation of BlackBerry smartphones and completes its cost-reduction plan, chief executive Thorsten Heins said.
"While this transition is challenging and the competitive environment tough, we have made steady progress in these areas in this quarter," Heins said in a conference call.
"Our teams are very focused on maintaining a strong financial position as we go through this transition."
The BlackBerry 10 operating system is on track to launch early next year, he added.
Total of cash, cash equivalents, short-term and long-term investments stood at $2.3 billion at Sept. 1, up from $2.2 billion at the end of the previous quarter.
Cash flow from operations was approximately $432 million in the quarter, compared to $710 million in the first quarter.
RIM said it had 80 million subscribers at the end of the quarter, an increase of about two million from the previous three months.
Jeffries analyst Peter Misek said the results were better than he feared.
"Management sold more BlackBerrys than we thought," he noted.
Shares in RIM jumped 15 per cent to US$7.14 in after-hours trading in New York. The company's shares rose eight cents to close at $6.96 at the Toronto Stock Exchange on Thursday.
In its outlook, RIM said it expects there will be continued pressure on operating results for the remainder of its financial year. RIM anticipates reporting an operating loss in the third quarter as it works through the transition.
The company's much-delayed BlackBerry 10 operating system and new smartphones are seen as key to its success.
-- The Canadian Press
Republished from the Winnipeg Free Press print edition September 28, 2012 B4
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