News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Build Apps 5x Faster
For Half the Cost Enterprise Cloud Computing
On Force.com
You are here: Home / Mobile Tech / RIM Still Optimistic, Despite Q3 Hit
DDoS Protection Powered By Verisign
RIM Remains Optimistic, Despite Q3 Hit
RIM Remains Optimistic, Despite Q3 Hit
By Jennifer LeClaire / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
DECEMBER
21
2012



Research In Motion's third-quarter results didn't surprise many analysts. Nevertheless, investors were selling off shares Friday as the BlackBerry-maker signaled falling unit sales and revenue. RIM only shipped 6.9 million BlackBerry smartphones and 255,000 BlackBerry PlayBook tablets.

Revenue for the third quarter of fiscal 2013 was $2.7 billion. That's down 5 percent from $2.9 billion in the previous quarter and down 47 percent from $5.2 billion in the same quarter of fiscal 2012. About 60 percent of RIM's revenues came from hardware, 36 percent for service and 4 percent for software and other revenue.

"RIM continued to execute on its product roadmap plans and to deliver on key financial metrics as it gets set for the global launch of BlackBerry 10," said Thorsten Heins, president and CEO of RIM. "During the third quarter, we continued to demonstrate our strong financial position, generating $950 million in cash flow from operations, and increasing our cash position significantly to more than $2.9 billion."

Handset Sales Slow

Heins remained optimistic. He said more than 150 carriers are completing technical acceptance programs for the first BlackBerry 10 products, and beta trials of BlackBerry Enterprise Service 10 are under way at more than 120 enterprises, including 64 Fortune 500 companies. BlackBerry 10 rolls out on Jan. 30.

Still, RIM admitted that the picture might grow dimmer before BlackBerry rises again. RIM expects to feel continued pressure on operating results as it gets set to launch its BlackBerry 10 platform in its fourth fiscal quarter. The company said it plans to consider using pricing initiatives on BlackBerry 7 devices and service fees in some markets as a way to maintain its subscriber base and drive more BlackBerry users.

RIM also noted that the timing of the BlackBerry 10 launch event could impact sales of current BlackBerry 7 products as some customers may put off purchase decisions and wait for BlackBerry 10 devices. All these factors are expected to affect unit volumes, subscribers, margins and service fees. RIM signaled a significant increase in its marketing spending this quarter to support the global launch of BlackBerry 10. That will lead to a fourth-quarter operating loss.

Hanging in the Balance

Shaw Wu, an analyst at Sterne Agee, told us the most important metric remains RIM's $2.3 billion in cash despite huge operating losses.

"It is not clear how sustainable this is as this is an accounting maneuver as opposed to an improvement in its fundamentals," Wu said. "The other big question is whether the company has a sustainable profitable business model where it needs to invest heavily to keep up with the vast resources of Apple, Google and Microsoft. The company is currently losing several hundred million dollars per quarter with profitability likely four to five quarters away."

Although optimism for BB10 has been growing in recent weeks -- and helping RIM shares more than double off the 52-week low -- Wu said there's yet a need for broader BlackBerry 10 support.

"For carriers, the rationale is simple where many are increasingly leery of the growing dominance of iOS and Android and have been looking for a viable third or potentially fourth platform with the hope that either BB10 and/or Windows 8 takes off," Wu said.

"But does the world really need a third or fourth mobile OS touchscreen platform? And what makes it different? So far, developer support and customer adoption have been lukewarm, so it remains to be seen if carrier hope wins out. To us, it's not just the number of apps, but the quality of apps, and whether developers are making money and customers are using them."

Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.
MORE IN MOBILE TECH
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Dairy Queen Latest Retailer To Report Hack
Known for its hot fries and soft-serve ice cream, Dairy Queen just made cyber history as the latest victim of a hack attack. The fast food chain said that customer data at some stores may be at risk.
 
Lessons from the JPMorgan Chase Cyberattack
JPMorgan Chase is investigating a likely cyberattack. The banking giant is cooperating with law enforcement, including the FBI, to understand what data hackers may have obtained.
 
Who Is the Hacker Group Lizard Squad?
Are they dangerous or just obnoxious? That’s what many are wondering about the hacker group Lizard Squad, which tweeted out a bomb threat that grounded a flight with a Sony exec aboard.
 

Enterprise Hardware Spotlight
Intel Intros Lightning-Fast PC Processors
Call it extreme. Intel just took the covers off its first-ever eight-core desktop processor, which is aimed at hardcore power users who expect more than the status quo from their computers.
 
HP Previews ProLiant Gen9 Data Center Servers
Because traditional data center and server architectures are “constraints” on businesses, HP is releasing new servers aimed at faster, simpler and more cost-effective delivery of computing services.
 
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 

Mobile Technology Spotlight
Samsung Maps Its Way with Nokia's 'Here' App for Galaxy Phones
Korean electronics giant Samsung has opted to license Here, Nokia’s mapping app -- formerly known as Nokia Maps -- for its Tizen-powered smart devices and Samsung Gear S wearable.
 
Will iPhone Finally Catch Up with NFC Mobile Payment Ability?
Apple's latest version of the iPhone may have a mobile wallet to pay for purchases with a tap of the phone. The iPhone 6 reportedly is equipped with near-field communication (NFC) technology.
 
Visual Search To Shop: Gimmick or Game Changing?
Imagine using your phone to snap a photo of the cool pair of sunglasses your friend is wearing and instantly receiving a slew of information about the shades along with a link to order them.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech | Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.