Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Vblock™ Systems:
Advanced converged infrastructure
increases productivity & lowers costs.

www.vce.com
Mobile Industry News
24/7/365 Network Uptime
Average Rating:
Rate this article:  
RIM Remains Optimistic, Despite Q3 Hit
RIM Remains Optimistic, Despite Q3 Hit

By Jennifer LeClaire
December 21, 2012 11:03AM

    Bookmark and Share
Although optimism for RIM's BlackBerry 10 (BB10) has been growing in recent weeks and helping RIM shares more than double off the 52-week low, analyst Shaw Wu says there's still need for broader BlackBerry 10 support. On the upside for RIM, is the company's $2.3 billion in cash reserves, despite its huge operating losses.
 



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:



Your Next Generation Data Center Is Here! Vblock™ Systems: the world's most advanced converged infrastructure are built on the Cisco Unified Computing System with Intel® Xeon® processors. Vblock™ Systems deliver extraordinary time to market, ROI and TCO, and flexibility to meet your continually changing demands with 5X faster deployment, 96% less downtime, and 1/2 the cost. Click here to learn more.


 Mobile Industry News
1.   Google, Rockstar Suit Stays in Calif.
2.   Google Earnings, Sales Disappoint
3.   Profit and Revenue Slip for IBM
4.   Malware Targets Facebook Users
5.   Intel Reports Lower 1Q Net Income


advertisement
Google, Rockstar Suit Stays in Calif.
Judge not fooled by Apple's tricks.
Average Rating:
Google Earnings, Sales Disappoint
Amid persistent downturn in ad prices.
Average Rating:
Malware Targets Facebook Users
iBanking app spys on communications.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Heartbleed Could Cost Millions, Could Have Been Prevented
Early estimates of Heartbleed’s cost to enterprises are running in the millions. The reason: revoking all the SSL certificates the bug exposed will come at a very hefty price. Some say it all could have been avoided.
 
Michaels Says Nearly 3M Credit, Debit Cards Breached
Arts and crafts retail giant Michaels Stores has confirmed that a data breach at its POS terminals from May 2013 to Jan. 2014 may have exposed nearly 3 million customer credit and debit cards.
 
Google's Street View Software Unravels CAPTCHAs
The latest software Google uses for its Street View cars to read street numbers in images for Google Maps works so well that it also solves CAPTCHAs, those puzzles designed to defeat bots.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
The innovative headpiece may find its niche in markets where hands-free access to data can be a big advantage. Glass experiments for doctors are already under way, with some promising results.
 

Mobile Technology Spotlight
Review: Siri-Like Cortana Fills Windows Phone Gap
With the new Cortana virtual assistant, Windows catches up with Apple's iOS and Google's Android in a major way, taking some of the best parts of Apple's and Google's virtual assistants, with new tools too.
 
With Galaxy S5, Samsung Proves Less Can Be More
Samsung has produced the most formidable rival yet to the iPhone 5s: the Galaxy S5. The device is the fifth edition of the company's successful line of Galaxy S smartphones, and shows less can be more.
 
Facebook Rolls Out Potentially Intrusive Location-Sharing
Looking for friends? Facebook users in the U.S. will soon be able to see which of their friends are nearby, using a smartphone's GPS. Could be a cool feature in some cases, or way too much information.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | 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 | XML/RSS Feed

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.