RIM posts better than expected results

RIM posts better than expected results

BlackBerry manufacturer Research In Motion has raised its game, posting better-than-expected Q3 results yesterday and its strongest ever quarter outside North America.

The results vindicate the company’s strategy to expand overseas and move away from its traditional corporate customer base towards the lucrative consumer smartphone market.

More than 50% of its current subscribers are non-corporate and that more than 80% of its new clients are consumers.

Research In Motion (RIM) announced Q3 revenue of $3.92 billion, up 11%  from the previous quarter and up 41 per cent from the third quarter of last year.

For the quarter to November 28, RIM said profit rose to $628.4 million, or $1.10 a share, from $396.3 million, or 69 cents, a year earlier.

RIM also added 4.4 million subscribers and forecast strong sales between $4.2 billion and $4.4 billion for the next quarter ending in February.

The results sent RIM shares ahead by 12.1 per cent in after-hours trading to $71.19.

The stock had dropped $1.21 to $63.46 during the regular trading session in New York.

‘We are pleased with the strong financial performance,’ said co-CEO Jim Balsillie on a conference call Thursday. ‘Focused execution in international markets led to the strongest quarter ever outside of North America.’

RIM also stepped up its drive into China, announcing a new partnership with China Telecom which follows a distribution partnership with China's largest IT services provider, Digital China Holdings, earlier this month and an agreement with China Mobile.

The company said more than 37% of its revenue comes from outside RIM's traditional North American home market however RIM refused to reveal how the numbers break down by country.

Analyst Jon Delaney of IDC told Mobile: ‘RIM has made some good progress on changing the basic perception of the device and on expanding its reach geographically but where they have done exceptionally well is in extending into the consumer market.’


Written by Mobile Today
Mobile Today


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