RIM Earnings: Oh, the Humanity!
Posting financials after market close Thursday, RIM reported a gruesome first-quarter loss of 37 cents per share on revenues that declined 42 percent to $2.81 billion. That loss excludes a pre-tax charge of $335 million for impairment of goodwill. Add that to the mix and RIM recorded a net loss of 99 cents.
Analysts had expected RIM to post a net loss of 3 cents a share on revenue of $3.1 billion for the period, so this was truly a flailing miss. Making matters worse: The announcement of layoffs of 5,000 employees and the delay of the BlackBerry 10 operating system until 2013.
The quarter also included a nasty decline in BlackBerry shipments — to 7.8 million from 11.1 million last quarter. The company said it shipped about 260,000 PlayBooks, which is a little more than half the number it shipped last quarter.
“Our first quarter results reflect the market challenges I have outlined since my appointment as CEO at the end of January,” CEO Thorsten Heins said in a dour earnings announcement. “I am not satisfied with these results and continue to work aggressively with all areas of the organization and the Board to implement meaningful changes to address the challenges, including a thoughtful realignment of resources and honing focus within the Company on areas that have the greatest opportunities.”
Sad news for the handset pioneer, and for its investors as well. At $7.70, RIM shares are down well over 15 percent in after-hours trading.