RIM meets the Street

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RIM meets the Street
By Ian Fried
Staff Writer, CNET News.com
June 21, 2001, 1:35 p.m. PT
Research In Motion on Thursday reported sales and earnings that matched Wall Street expectations and reiterated its outlook for the current quarter.

The maker of the BlackBerry two-way e-mail pager earned $3.8 million, or 5 cents per share, on revenue of $77 million for the quarter that ended June 2.

Analysts were expecting RIM to report earnings of 5 cents per share, with several analysts pegging revenue somewhere between $75 million to $80 million.
In the same quarter last year, RIM earned $400,000, or less than 1 cent per share, on revenue of $27.1 million.

“We’re pleased that we’ve been able to continue to perform well in a challenging economic environment,” Jim Balsillie, RIM’s co-chief executive officer, said in a statement.

RIM’s customers are primarily corporations. The company’s earnings come as more the consumer-oriented handheld makers Palm and Handspring have warned that their sales will come in at roughly half of what they predicted at the start of the current quarter.

RIM said it matched estimates in spite of reported inventory issues at some of the companies that resell the BlackBerry.

“Results were in line with expectations despite some areas of weakness in the BlackBerry reseller channel,” said Dennis Kavelman, RIM’s chief financial officer. “We are maintaining guidance for the second quarter and maintaining our positive outlook on the second half of the year.”

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