RIM (RIMM) Spanked on Wide Q1 Loss, BB10 Delay, Bleak Q2 Outlook, and So On...
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All the juice seems to have been squeezed out of Research In Motion's (Nasdaq: RIMM) BlackBerries following its first-quarter2013 earnings release Thursday.
Revenue for the Waterloo, Ontario-based device maker fell 43 percent to $2.81 billion, while gross margin got clobbered, falling from 43.9 percent last year down to 28.0 percent.
As expected, RIM swung to a loss of $518 million, from profit of $695 million last year. Loss per share was 99 cents, or 37 cents following adjustments for one-time items.
Overall, the Street was looking for sales of $3.13 billion and a loss of just 1 cent per share.
Shipments of BlackBerry smartphones were 7.8 million and shipments of BlackBerry PlayBook tablets were approximately 260,000. (Attention RIM: those are called "donations," not "shipments.")
Looking ahead, RIM sees an operating loss for its next quarter.
Of the most notable items in the release was RIM reporting a further delay to its BlackBerry 10 operating system, which is the equivalent of what investors still in the stock are banking on. BB10 is now expected to be out in the first-quarter of calendar 2013 due to "[integration of key] features and the associated large volume of code into the platform has proven to be more time consuming than anticipated."
In addition, the company said it would be cutting 5,000 additional jobs via its CORE (Cost Optimization and Resource Efficiency) program, warning that it "may increase the scope and magnitude of these programs." Restructuring charges of $350 million are expected, though RIM sees about $1 billion in savings by the end of fiscal 2013.
RIM today also announced the appointment of Steve Zipperstein, former General Counsel of Verizon Wireless (NYSE: VZ), as its Chief Legal Officer.
Shares of RIM are down about 18 percent in the after-hours session.
Revenue for the Waterloo, Ontario-based device maker fell 43 percent to $2.81 billion, while gross margin got clobbered, falling from 43.9 percent last year down to 28.0 percent.
As expected, RIM swung to a loss of $518 million, from profit of $695 million last year. Loss per share was 99 cents, or 37 cents following adjustments for one-time items.
Overall, the Street was looking for sales of $3.13 billion and a loss of just 1 cent per share.
Shipments of BlackBerry smartphones were 7.8 million and shipments of BlackBerry PlayBook tablets were approximately 260,000. (Attention RIM: those are called "donations," not "shipments.")
Looking ahead, RIM sees an operating loss for its next quarter.
Of the most notable items in the release was RIM reporting a further delay to its BlackBerry 10 operating system, which is the equivalent of what investors still in the stock are banking on. BB10 is now expected to be out in the first-quarter of calendar 2013 due to "[integration of key] features and the associated large volume of code into the platform has proven to be more time consuming than anticipated."
In addition, the company said it would be cutting 5,000 additional jobs via its CORE (Cost Optimization and Resource Efficiency) program, warning that it "may increase the scope and magnitude of these programs." Restructuring charges of $350 million are expected, though RIM sees about $1 billion in savings by the end of fiscal 2013.
RIM today also announced the appointment of Steve Zipperstein, former General Counsel of Verizon Wireless (NYSE: VZ), as its Chief Legal Officer.
Shares of RIM are down about 18 percent in the after-hours session.
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