WATERLOO – Third quarter profits at Research In Motion tumbled, despite a 24% increase in revenue from its previous quarter.
The BlackBerry maker reported net income of US$265 million, a sharp drop from $911 million in the same period last year. Adjusted net income for the period ended November 26, 2011 was $667 million.
Revenue was $5.2 billion, up from $4.2 billion in the previous quarter but down 6% from $5.5 billion in the third quarter of last year. RIM described the revenue breakdown for the quarter as approximately 79% for hardware, 19% for service and 2% for software and other revenue.
Approximately 14.1 million BlackBerry smart phones and about 150,000 BlackBerry PlayBook tablets were shipped this quarter, and the BlackBerry subscriber base grew to almost 75 million customers around the world, a 35% year-over-year increase.
However, the company warned that its new BlackBerry 10s now won't be available until late next year, and forecast that revenue for the fourth quarter ending March 3, 2012 is expected to be in the range of $4.6-$4.9 billion. The estimate was below analysts’ expectations and shares dropped in after-hours trading on Thursday.
"RIM continues to have strong technology, unique service capabilities and a large installed base of customers, and we are more determined than ever to capitalize on our strengths to overcome the recent execution challenges surrounding product launches and the resulting financial performance”, said co-CEOs Jim Balsillie and Mike Lazaridis, in a joint statement.
Balsillie and Lazaridis also pledged to “continue to evaluate ways to improve in several areas of the company's operations”, and said that they planned to cut their annual salary in 2012 to $1 per year.
