RIM's (RIMM) Hardware Unit Now Losing Money - Analyst

Things appear to be going from bad to downright awful for blackberry maker Research In Motion Ltd. (NASDAQ: RIMM) at lightning speed.

The companies latest annual filing implies that the company's hardware division is now losing money, according to analyst Peter Misek at Jefferies.

While RIM does not provide cost-of-goods-sold by division, Misek's analysis showed the important division is now making a loss as the company showed that hardware gross margin fell from 36% in FY11 to 20% in FY12.

"Assigning opex based on revenues implies that Hardware OM went from 14% in FY10 to 15% in FY11 to -8% in FY12 GAAP, 3% non-GAAP, or -4% adjusted non-GAAP," he said.

Jefferies maintained an Underperform rating and price target of $12 on RIM.

For an analyst ratings summary and ratings history on Research In Motion Ltd. click here. For more ratings news on Research In Motion Ltd. click here.

Shares of Research In Motion Ltd. closed at $13.02 yesterday.

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