RIM Q1 Report: $192 million Loss, BlackBerry 10 delayed till Q1 2013

The BlackBerry makers haven’t had a lot of good days or months lately or even years! Their stock has plummeted in the past year, and they’re facing declining market share to iOS and Android and things are not looking good at all this year. After laying off 5,000 workers, revenue was $2.8 billion for the quarter.  That’s down a whopping 33% from last quarter.  Keep in mind last quarter to get a sense of how disappointing this is, the Street was expecting revenue of $3.1 billion.  So it’s a miss of just over 10% Not pretty.

Earnings-wise, Wall Street expected a small loss (one penny per share).  In reality RIM lost $0.37 per share, which amounts to $192 million.

RIM shipped only 7.8 million BlackBerry devices, compared to Wall Street expectations for 8.7 million.  Again, that’s about a 10% shortfall.

Looking at RIM’s cash flow statement, they generated about $710 million in cash flow from operations. However, almost $400 million of this came from a reduction in working capital.

Thorsten Heins, the company’s CEO says that the BlackBerry subscriber base is still growing in all regions except the United States, which I find interesting. But I have to wonder how long this can keep happening.

Back in October, RIM announced its next OS, BBX or Blackberry 10, the OS — which is said will turn the company around, was supposed to be released before the end of the year but has been pushed to Q1 of 2013 and this might not look pretty good for the company as we recently saw the launch Android Jelly bean OS, Apple’s iOS 6 and a new iPhone is set to launch soon as well.

But despite RIM’s many issues, the company still has 78 million subscribers and $2.2 billion in cash on hand. The company is yet to face its biggest critics, which are its shareholders, and the media has gone on speculating the possible future for RIM and the Blackberry. Whether they will keep trying till one day the company just comes to a halt or the company is looking for a buyer who will attempt to turn the company around which is a far bet. But for now lets watch and see what the company’s plans are.

What do you think the company can do to come back in the game or do you think its over for RIM?

Victor Nneji

Tech Fanatic. Enrolled on a Computing for Business course at Aston University, Birmingham. Attended Dowen College Lagos. Nigerian. Follow me on twitter @Vicneji.

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