RIM's weaker forecast hits stock
Quarterly profit slips to $476M US
Last Updated: Thursday, September 24, 2009 | 5:28 PM ET
CBC News
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Shares of Research In Motion Ltd. fell sharply in after-hours trading on Thursday.
The drop came after the Waterloo, Ont.-based maker of the Blackberry smartphone reported a weaker-than-expected forecast for sales in the current quarter.
Research in Motion updated its line of Blackberry smartphones this year.
(Adrian Wyld/Canadian Press) The company said sales in the period ending Nov. 28 will be $3.6 billion to $3.85 billion US. RIM also reported lower profits Thursday.
The company earned $475.6 million, or 83 cents per diluted share, for the three months to Aug. 29. That compared with a profit of $495.5 million, or 86 cents per diluted share, a year earlier.
Revenue for the quarter totalled $3.53 billion, up from $2.58 billion. RIM attributed the drop to the costs of settling a patent dispute with Visto Corp.
Revenue rose 37 per cent to $3.53 billion from $2.58 billion. The company added about 3.8 million net new BlackBerry accounts in the quarter, bringing its total subscribers to about 32 million.
"We are pleased to report a strong second quarter with excellent financial performance, successful product launches and accelerating growth in international markets and new market segments," co-chief executive officer Jim Balsillie said in a statement.
RIM's price has risen nearly 19 per cent since July, in part because the company has updated its line of Blackberrys.
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