BlackBerry manufacturer Research in Motion has continued to lose money, but its quarterly loss of $235m was lower than analysts' expectations.
Sales for the three months to 1 September marginally increased from the previous quarter, by 2% to $2.9bn. However, revenue was down 31.1% on the same period last year. The manufacturer is not bringing a new smartphone to market during the busy fourth quarter of 2012, with its new BlackBerry 10 devices hitting stores in early 2013.
Its fortunes have changed dramatically in recent quarters as it struggled to keep pace with the smartphone market. This time last year, it made a profit of $329m, compared to its $235m net loss. However, it dramatically cut its loss from $518m in the preceding quarter.
The results lead to a 20% surge in shares in after-hours trading as the company also revealed its cash reserves increased from $2.2bn to $2.3bn. It shipped 7.4 million smartphones during the quarter and 130,000 BlackBerry PlayBook tablets. Earlier this week, CEO Thorsten Heins [pictured] revealed BlackBerry's subscriber base has increased to around 80 million subscribers.
Heins said: 'Despite the significant changes we are implementing across the organisation, our second quarter results demonstrate that RIM is progressing on its financial and operational commitments during this major transition. Subscribers grew to approximately 80 million global users, revenue grew sequentially from the first quarter, cash, cash equivalents, short-term and long-term investments increased by approximately $100m to $2.3bn, and carriers and developers are responding well to previews of our upcoming BlackBerry 10 platform.
'Make no mistake about it, we understand that we have much more work to do, but we are making the organisational changes to drive improvements across the company, our employees are committed and motivated, and BlackBerry 10 is on track to launch in the first calendar quarter of 2013.'
The company said it would continue its aggressive sales and marketing drive of BlackBerry 7 devices ahead of the launch of the new BB10 smartphones.
Editor: Graeme Neill