Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

RIM shares plunge on weak outlook

chart_ws_stock_researchinmotionltd.top.PNGResearch in Motion's stock has been all over the map this year. By Laurie Segall, staff reporter


NEW YORK (CNNMoney) -- BlackBerry maker Research in Motion disappointed investors Thursday with revenue that rose 36% compared to last year but still fell short of expectations.

The company reported a profit of $984 million, or $1.78 per share, edging past the consensus estimate of analysts polled by Thomson Reuters. But its sales of $5.56 billion came in slightly short of forecasts.

RIM (RIMM) shares fell 12% in after-market trading thanks to the company's cautious guidance about its current quarter. Revenue is expected to be in the range of $5.2 billion to $5.6 billion, the company said.

The forecast reflects customers' shift toward RIM's lower-priced products, and RIM's rising sales, marketing and development expenses from its forthcoming push into the tablet market. RIM also warned about a risk of potential supply-chain disruption as a result of Japan's recent earthquake -- a problem plaguing the consumer electronics industry.

The company's closely watched PlayBook tablet will go on sale next month. With prices starting at $499, the new device will go head-to-head against Apple's iPad.

RIM says it's bullish about its prospects.

"As we enter fiscal 2012, RIM is in an excellent position," Jim Balsillie, RIM's co-CEO, said in a prepared statement. "We are extremely excited about our smartphone, tablet and platform roadmaps."

For its full 2011 fiscal year, which ended Feb. 26, RIM reported sales of $19.9 billion, up 33% from the previous year. Net income for the year was $3.4 billion, up 47%.

BlackBerry smartphone shipments for the year totaled 52.3 million, up 43% from the previous year.  To top of page

Index Last Change % Change
Dow 21,899.89 196.14 0.90%
Nasdaq 6,297.48 84.35 1.36%
S&P 500 2,452.51 24.14 0.99%
Treasuries 2.22 0.03 1.61%
Data as of 6:47pm ET
Company Price Change % Change
Bank of America Corp... 23.83 0.45 1.92%
Coty Inc 17.71 -1.84 -9.41%
Advanced Micro Devic... 12.17 0.12 1.00%
Freeport-McMoRan Inc... 15.07 0.34 2.31%
General Electric Co 24.60 0.11 0.45%
Data as of 4:15pm ET
Sponsors

Sections

The Trump administration has rejected a frantic cry for help from coal execs requesting an emergency order that would protect coal-fired power plants from being closed. More

Oregon made tuition free at community colleges last year, but the state had to change eligibility requirements this fall due to high turnout and limited funding. More