RIM (RIMM) Q1 Results Look Grim, FY12 Outlook Reduced; Plans Headcount Reduction
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Research In Motion (Nasdaq: RIMM) shares are set to take a dive after-hours following dismal-at-best first-quarter results and guidance from the Waterloo, ON-based mobile communications company.
Revenue in the quarter increased 15.9 percent from $4.235 billion to $4.908 billion. A consensus of analysts on the Street were looking for a much more robust $5.15 billion.
Net income fell 9.6 percent to $695 million, or $1.33 per share, edging out consensus estimates calling for EPS of $1.32.
"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," CEO Jim Balsillie commented. "RIM will see strong profit growth in the latter part of fiscal 2012."
Amid the numbers, RIM authorized a 5 percent common stock repurchase plan.
Guidance looks to be the most concerning part of the report: second-quarter sales are expected to be $4.2 to $4.8 billion, shy of the $5.46 billion sought by the consensus. Quarterly earnings seen in the range of $0.75 to $1.00, compared to the Street's $1.40 estimate.
RIM lowered its FY12 EPS outlook from about $7.50 to a range of $5.25 to $6.00, versus the consensus of $6.29.
In an effort to streamline operations and reduce costs, RIM also announced a headcount reduction program. No specific numbers where mentioned in the release.
RIM shares are currently halted, shares were up about 1 percent from the close ahead of the stop in trade.
Revenue in the quarter increased 15.9 percent from $4.235 billion to $4.908 billion. A consensus of analysts on the Street were looking for a much more robust $5.15 billion.
Net income fell 9.6 percent to $695 million, or $1.33 per share, edging out consensus estimates calling for EPS of $1.32.
"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," CEO Jim Balsillie commented. "RIM will see strong profit growth in the latter part of fiscal 2012."
Amid the numbers, RIM authorized a 5 percent common stock repurchase plan.
Guidance looks to be the most concerning part of the report: second-quarter sales are expected to be $4.2 to $4.8 billion, shy of the $5.46 billion sought by the consensus. Quarterly earnings seen in the range of $0.75 to $1.00, compared to the Street's $1.40 estimate.
RIM lowered its FY12 EPS outlook from about $7.50 to a range of $5.25 to $6.00, versus the consensus of $6.29.
In an effort to streamline operations and reduce costs, RIM also announced a headcount reduction program. No specific numbers where mentioned in the release.
RIM shares are currently halted, shares were up about 1 percent from the close ahead of the stop in trade.
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