EmailResarch in Motion (RIMM $7.85 -1.32) reported a first quarter loss of $0.37 per share, $0.29 worse than the Capital IQ consensus of ($0.08), while revenues fell 42.7% year/year to $2.81 billion versus the $3.04 bln consensus. Shipments of BlackBerry smartphones were 7.8 million and shipments of BlackBerry PlayBook tablets were approximately 260,000. BlackBerry 10 smartphone launch now scheduled for Q1 of calendar 2013.
The Company expects the next several quarters to continue to be very challenging for its business based on the increasing competitive environment, lower handset volumes, potential financial and other impacts from the delay of BlackBerry 10, pressure to reduce RIM's monthly infrastructure access fees, and the Company's plans to continue to aggressively drive sales of BlackBerry 7 handheld devices. The Company expects to report an operating loss in the second quarter of fiscal 2013, as RIM continues to invest in marketing programs and continues to work through the transition to BlackBerry 10, as well as the Company's fixed costs being allocated over a lower volume of shipments. This outlook excludes the impact of charges related to the CORE Program. Briefing Note: Q2 Capital IQ consensus is -$0.07.
