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Friday, June 17, 2011

RIM warns of redundancies as financial year has 'challenging start'

Research In Motion has published its quarterly results for the three months ended 28th May 2011; the first quarter of its 2012 financial year.

It says revenue was up 16% year-on-year to $4.9 billion (but down 12% on the previous quarter). Around 78% of this revenue was from hardware and 20% for service. RIM shipped approximately 13.2 million BlackBerry handheld devices and approximately 500,000 BlackBerry Playbook tablets in the quarter.

Net quarterly income was $695 million, compared with net income of $934 million in the previous quarter and net income of $769 million in the same quarter last year.

Jim Balsillie, Co-CEO at Research In Motion, 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. 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.”

The company also announced a ‘Cost Optimization Program’ that’ll involve a number of redundancies.

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Author: The Fonecast
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