RIM Continues String of Profitable Quarters

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Research In Motion Limited (RIM), maker of the BlackBerry line of wireless handhelds, has reported the results for its financial quarter that ended May 29. The company reported its fourth profitable quarter in a row.

Revenue for the quarter was $269.6 million, up 158 percent from the same quarter of last year. The revenue breakdown was approximately 68 percent for handhelds, 19 percent for service, 9 percent for software licenses, and 4 percent for other revenue.

RIM’s net income for the quarter was $55 million, or 28 cents per share diluted. Excluding the litigation provision of $15.6 million or 8 cents per share diluted, the company’s adjusted net income and adjusted diluted earnings was $70.6 million and 36 cents per share.

The company did better than analysts had expected. They had predicted revenues of $263 million and an adjusted net income of 32 cents a share.

The total number of BlackBerry subscribers increased by roughly 270,000 from the prior quarter. The total now stands at approximately 1,340,000 subscribers.

RIM said it now expects to have revenue for the quarter that ends in August between $290 million and $310 million, significantly higher than last quarter.

RIM is a success story at a time when overall sales of handhelds have remained flat. According to market-research firm Gartner, sales of BlackBerries more than tripled during the first quarter of this year, and RIM moved up to be the third largest handheld maker in the world.

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