Courtesy of Benzinga
While shares of Research In Motion (NASDAQ: RIMM) are currently halted, they will likely fall in the after-hours trade after the company reported weak earnings and revised FY 2012 lower.
Research In Motion reported Q1 EPS of $1.33 on revenues of $4.91 billion; the Street was looking for $1.32 per share on revenues of $5.14 billion. Revenues increased 15.9% year over year.
The company also revised Q2 estimates, saying it sees EPS of $0.75-1.05 on revenues of $4.2-4.8 billion, as well FY 2012 guidance, saying it sees EPS of $5.25-6.00. The Street was at $1.38 per share on revenues of $5.44 billion (Q2) and $6.24 (FY 2012).
“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.” said Jim Balsillie, Co-CEO at Research In Motion.
“RIM’s business is profitable and remains solid overall with growing market share in numerous markets around the world and a strong balance sheet with almost $3 billion in cash. We believe that with the new products scheduled for launch in the next few months and realigning our cost structure, RIM will see strong profit growth in the latter part of fiscal 2012.”
Research In Motion Limited is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information, including e-mail, phone, short message service, Internet and intranet-based applications.
