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Last Update: 16-Dec-11 09:47 ET
Research In Motion Down 10% On Earnings/Guidance Late Yesterday
Research In Motion (RIMM $13.59 -1.54) is trading sharply lower following its earnings and guidance results after the close yesterday.
Late yesterday, the company reported earnings of $1.27 per share, $0.08 better than the Capital IQ Consensus Estimate of $1.19.
Revenues fell 5.9% year/year to $5.17 bln vs the $5.24 bln consensus.
The revenue breakdown for the quarter was ~79% for hardware, 19% for service and 2% for software and other revenue. During the quarter, RIM shipped ~14.1 million BlackBerry smartphones and ~150,000 BlackBerry PlayBook tablets; GAAP GM -1630 bps YoY to 27.3%; smartphone shipments +33% QoQ to 14.1 mln.
For the fourth quarter, the company expects to see earnings guidance of $0.80 to $0.95 versus the $1.10 Capital IQ Consensus Estimate; sees revenues of $4.6 billion to $4.9 billion versus the $5.05 billion Capital IQ Consensus Estimate. Gross margin percentage for the fourth quarter is expected to be ~38%.
BlackBerry smartphone shipments are expected to be between 11-12 mln units. "Despite the challenges faced in the third quarter, the BlackBerry subscriber base grew to almost 75 mln customers around the world. In addition, RIM launched a range of new BlackBerry 7 based smartphones globally and introduced holiday promotions that helped drive growth in the installed base of BlackBerry PlayBook users... As part of our commitment to improving our performance to better meet the expectations of shareholders and customers, we continue to evaluate ways to improve in several areas of the Company's operations. It may take some time to realize the benefits of these efforts and the platform transition that we are undertaking, but we continue to believe that RIM has the right set of strengths and capabilities to maintain a leading role in the mobile communications industry."
Late yesterday, the company reported earnings of $1.27 per share, $0.08 better than the Capital IQ Consensus Estimate of $1.19.
Revenues fell 5.9% year/year to $5.17 bln vs the $5.24 bln consensus.
The revenue breakdown for the quarter was ~79% for hardware, 19% for service and 2% for software and other revenue. During the quarter, RIM shipped ~14.1 million BlackBerry smartphones and ~150,000 BlackBerry PlayBook tablets; GAAP GM -1630 bps YoY to 27.3%; smartphone shipments +33% QoQ to 14.1 mln.
For the fourth quarter, the company expects to see earnings guidance of $0.80 to $0.95 versus the $1.10 Capital IQ Consensus Estimate; sees revenues of $4.6 billion to $4.9 billion versus the $5.05 billion Capital IQ Consensus Estimate. Gross margin percentage for the fourth quarter is expected to be ~38%.
BlackBerry smartphone shipments are expected to be between 11-12 mln units. "Despite the challenges faced in the third quarter, the BlackBerry subscriber base grew to almost 75 mln customers around the world. In addition, RIM launched a range of new BlackBerry 7 based smartphones globally and introduced holiday promotions that helped drive growth in the installed base of BlackBerry PlayBook users... As part of our commitment to improving our performance to better meet the expectations of shareholders and customers, we continue to evaluate ways to improve in several areas of the Company's operations. It may take some time to realize the benefits of these efforts and the platform transition that we are undertaking, but we continue to believe that RIM has the right set of strengths and capabilities to maintain a leading role in the mobile communications industry."
