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

Search for Jobs

Index Last Change % Change
Dow 17,140.24 -260.51 -1.50%
Nasdaq 4,594.44 -113.54 -2.41%
S&P 500 2,000.54 -36.87 -1.81%
Treasuries 1.46 -0.12 -7.54%
Data as of 4:35am ET
Company Price Change % Change
Bank of America Corp... 12.18 -0.82 -6.31%
General Electric Co 29.32 -0.51 -1.71%
Citigroup Inc 38.48 -1.82 -4.52%
Ford Motor Co 12.16 -0.36 -2.88%
Microsoft Corp 48.43 -1.40 -2.81%
Data as of Jun 27
Sponsors

Sections

The fallout of the UK referendum vote to leave the European Union undercuts central banks' ability to buoy the global economy. More

A new smart billboard on a Japanese highway will tailor its ads based on what car you're driving. More