RIM reports sharp profit increase

Research In Motion reports a steep rise in sales and earnings.

Adds 4.4 million subscribers

Research In Motion Ltd. has reported a 59 per cent rise in quarterly profit on a 41 per cent increase in sales over a year ago.

The Waterloo, Ont.-based maker of the BlackBerry, with its books kept in U.S. dollars, said Thursday it earned $628.4 million, or $1.10 per diluted share, for its third quarter ended Nov. 30. That was up from $396.3 million, or 69 cents per share, a year ago.

Research in Motion 3-month chart

Revenue was $3.92 billion, up from $2.78 billion. 

The company said it added about 4.4 million net new BlackBerry subscribers in the quarter, bringing the total number of users to 36 million. Co-CEO Jim Balsillie said in a statement the company shipped more than 10 million BlackBerrys during the third quarter. 

"RIM is experiencing a great start to the holiday buying season, and the strong Q3 results and Q4 outlook clearly reflect the strength of our diversified product portfolio, as well as the success of our efforts to expand into broader customer segments and new geographies while maintaining our strong position in North America," he said. 

In its guidance for the fourth quarter, RIM said it expects revenue between $4.2 billion and $4.4 billion, and earnings between $1.23 and $1.31 per share.

 

Corrections

  • A previous version of this story dropped a decimal point and reported that revenue in the latest quarter was $392 billion. The correct figure is $3.92 billion.
    Dec 17, 2009 6:15 PM ET

With files from The Canadian Press