BlackBerry maker Research In Motion released first-quarter earnings Thursday and lowered its projections for second-quarter earnings. (Paul Sakuma/The Associated Press)
Shares in Waterloo, Ont.-based Research In Motion fell Thursday after it announced it was planning job cuts as it reported first-quarter revenue and earnings that didn't meet analysts' expectations.
The company posted quarterly revenue of $4.9 billion U.S. and earnings per share of $1.33. Analysts had expected revenue of about $5.15 billion and earnings per share of $1.32. RIM reports in U.S. dollars.
In after hours trading in New York, its stock was trading down $5.57, or 15 per cent, to $30.01 US.
The company was not specific about how many positions would be cut in what it called a "headcount reduction."
"This realignment will be focused on taking out redundancies and a reallocation of resources to allow us to focus on the areas that offer the highest growth opportunities and align with RIM strategic objectives, such as accelerating new product introductions," the company said in a release.
"We expect to implement this program beginning in the second quarter with the benefits impacting results primarily in Q3 and beyond."
Revenue was down 12 per cent from $5.6 billion in the previous quarter and up 16 per cent from $4.2 billion in the same quarter of last year.
The earnings of $695 million compared with $934 million, or $1.78 share, in the prior quarter and $769 million, or $1.38 a share, in the same quarter last year.
RIM lowers earnings estimates
The company said it shipped approximately 13.2 million BlackBerrys and approximately 500,000 BlackBerry Playbook tablets during the quarter.
The company also estimated second-quarter earnings per share in a range of 75 cents to $1.05, as opposed to earlier guidance of $1.40.
It reduced its previous guidance of earnings of $7.50 a share for the full year to between $5.25 and$6.00.
"Fiscal 2012 has gotten off to a challenging start," co-CEO Jim Balsillie said in a statement.
"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 are leading to a lower than expected outlook in the second quarter."
The firm's BlackBerry smartphone lineup has faced fierce competition, especially in the U.S., from Apple's iPhone and devices using Google's Android software.
In April, investors hammered the company's shares after it warned that first-quarter earnings and sales would not be as strong as it had earlier estimated.
Investors have called for a change to RIM's management structure, saying there should be only one chief executive and an independent chairman of the board. Balsillie and co-chief executive Mike Lazaridis also serve as co-chairmen of the company.
However Balsillie said Thursday the company's management structure is working.
"Neither of us could have taken the company this far alone," he said.
With files from The Canadian PressShare Tools
Top News Headlines
- CP Rail negotiations stalled, union says
- Negotiations between Canadian Pacific Railway Lt. and the union representing 4,800 striking locomotive engineers and conductors have come to a "stall" after the government-appointed mediator walked out at 2 p.m. ET, a union spokesman says. more »
- UN Security Council blames Syrian regime for massacre
- The UN Security Council condemned the Syrian regime at an emergency meeting Sunday, holding president Bashar al-Assad's military responsible for the massacre of more than 100 people, dozens of whom were children younger than 10 years old. more »
- Ryder Hesjedal wins prestigious Giro d'Italia
- Victoria, B.C., native Ryder Hesjedal has become the first Canadian to win one of the cycling world's three Grand Tour events, wrapping up the 2012 Giro d'Italia with an excellent performance in the final stage in Milan. more »
- Neighbour may have helped find missing kids in Mexico
- Two Winnipeg children who had been missing for nearly four years were found in Mexico after a man raised concerns about his neighbour, according to a private investigator. more »
Latest Business Headlines
- Bankia asks Spain for €19B
- The board of directors of Spain's troubled bank, Bankia, has asked the Spanish government for €19 billion ($24.5 billion Cdn) in financial support. more »
- EI reforms aim to boost employment, Flaherty says
- Finance Minister Jim Flaherty defended his government's proposals to change employment insurance, saying the aim is to remove "disincentives to employment." more »
- Employment Insurance review boards to be scrapped
- The federal government is scrapping two review boards used by people appealing decisions made about their employment insurance. more »
- Ottawa moves to limit foreign investment reviews
- The federal government is raising to $1 billion the amount of foreign money that can go into a Canadian company before the investment is reviewed. The review has been used in the past to block foreign takeovers of MDA and Potash Corp. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 11576.47 | 10.4 |
| DOW | 12454.83 | -74.92 |
| NASDAQ | 2837.53 | -1.85 |
| SP 500 | 1317.82 | -2.86 |
| NYSE COMPOSITE | 7534.32 | -18.01 |
| AMEX | 2227.37 | 1.45 |
| TSX-VENTURE | 1309.27 | 26.8 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- Teen struck by lightning in Ottawa dies
- Missing Winnipeg children found in Mexico
- Quebec tornadoes cause millions in damage
- UN Security Council blames Syrian regime for massacre
- Montreal protesters march in peaceful defiance
- Woman's remains found in hockey bag on Cape Breton river
- Everest team unable to bring down Toronto woman's body
- WWE apologizes to Brazil over Canadian's flag stomp
- Lady Gaga nixes Indonesia show after threats
