RIM Misses Big With Loss of 37 Cents a Share; Stock Plunges
Research In Motion reported a much bigger quarterly loss than expected Thursday and delivered revenue that fell short of Wall Street's expectations.
The BlackBerry maker also said it would cut 5,000 jobs as smartphone shipments fell sharply.
Following the earnings announcement, the BlackBerry maker's shares dropped sharply after earlier being halted ahead of the report.
The company posted a first-quarter loss excluding items of 37cents per share, down froma quarterly profit of $1.33 a share in the year-earlier period.
Its adjusted net loss was $192 million, or 37 cents a share, down from net income of $695 million, or $1.33 a share, last year.
Revenue plunged 43 percent to $2.8 billion, from $4.91 billion a year ago.
Analysts had expected the company to report a quarterly loss excluding items of 3 cents a share on $3.10 billion in revenue, according to a consensus estimate from Thomson Reuters.
Following the earnings announcement, CEO Thorsten Heins said the company will aggressively drive sales of BlackBerry 7 devices and launch a new PlayBook tablet soon but expects a loss in the current quarter.
Last month, the company warned that it would report its second consecutive operating lossthis quarter. Before the warning, analysts had been expecting a profit of 42 cents per share, according to Thomson Reuters.
The loss is the latest in a string of dismal messages for the once-dominant BlackBerry maker that has seen its smartphone market share be eroded by Apple's iPhone and devices running Google's Android operating software.
In May the company hired JPMorgan and RBC Capital to look at its strategic options and has announced impending layoffs as the company's shares continue their slide downward.