WATERLOO – Research In Motion saw its second quarter revenue fall by 10% and profits nearly cut in half from the same period a year ago, the company reported Thursday.
For the second quarter ended August 27th, RIM said that revenue was US$4.2 billion, down 15% from $4.9 billion in the previous quarter and down 10% from $4.6 billion in the same quarter of last year. The revenue breakdown for the quarter was approximately 73% for hardware, 24% for service, and 3% for software and other revenue. Adjusted net income for the second quarter was $419 million.
RIM said that it shipped approximately 10.6 million BlackBerry smart phones and approximately 200,000 BlackBerry PlayBook tablets during the quarter. Analysts had expected PlayBook shipments closer to 500,000, and Co-CEO Jim Balsillie admitted that shipments were below the company’s own expectations.
“Overall unit shipments in the quarter were slightly below our forecast due to lower than expected demand for older models," Balsillie said in a statement. "We will continue to build on the success of the BlackBerry 7 launch to drive the business as we focus our development efforts on delivering the next generation, QNX-based mobile platform next year."
The BlackBerry maker estimated third quarter revenues in the range of $5.3-$5.6 billion, with BlackBerry smart phone shipments between 13.5 million and 14.5 million units.
