RIM Had a Stellar Quarter, Stock Price Rising Sharply

by Reads (2,695)

During its most recent financial quarter, RIM experienced record sales of BlackBerrys, and better than expected revenue and profits.

This company sold 10.1 million smartphones during its last quarter, which ended in November. Many of these were to new Blackberry users: 4.4 million subscriber accounts were added in the period.  By the end of the quarter, the total number of current BlackBerry users was about 36 million. 

In addition, RIM produced its 75 millionth BlackBerry smartphone during this quarter.

Revenue and Earnings
Revenue for this company’s most recent financial quarter was $3.9 billion, up 11% from the previous quarter and up 41% year-over-year. The revenue breakdown for the quarter was approximately 82% from devices, 14% from service, 2% from software, and 2% from other sources.  

Net income for the quarter was $628.4 million, or $1.10 per share, compared with net income of 83 cents per share in the prior quarter and net income of 69 cents per share in the same quarter of last year.

A Stock Rally
RIM did considerably better than Wall Street analysts had been expecting. They had predicted a profit of $1.04 per share profit on revenue of $3.8 billion. They’d also guessed this company would sell 9.5 million smartphones.

This has led to a strong rise in RIM’s share price: it’s currently up over 11% from yesterday’s close.

Source: RIM and Yahoo Finance

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