Research in Motion Trades Off; FY Q1 EPS Beats, Revenue Misses
Research In Motion (RIMM) shares are trading lower after hours on a mixed report for its fiscal first quarter ended May 29.
For the quarter, RIMM reported revenue of $4.24 billion, just below the low end of the guidance range of $4.25 billion and $4.45 billion, and below the Street consensus at $4.35 billion. Profits of $1.38 a share, on the other hand, were at the top of the guidance range of $1.31 to $1.348 a share, and above the Street at $1.34.
The company shipped 11.2 million smart phones in the quarter, and added 4.9 million net new subscriber accounts, boosting the total to 46 million. The company came in at the low of the guidance ranges on both measures: the company had expected to sell 11.2 million to 11.8 million phones, and it had expected to add 4.9 million to 5.2 million net new customers.
Gross margin in the quarter was 45.4 percent, down from 45.7 percent in the February quarter, but up from 43.6 percent a year ago.