RIM Revenues Up, Losses Down

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Research In Motion (RIM), maker of the Blackberry wireless pager, has reported results for its most recent financial quarter which ended ended March 1.

Revenue for the quarter was $87.5 million, up substantially from the $66.1 million in the same quarter a year ago. It was also up 18% from $74.2 million in the previous quarter. This is impressive as the first three months of the year are typically the slowest for handheld sales.

The revenue breakdown for the quarter was approximately 46% for handhelds, 41% for service, 6% for software licenses, and 7% for OEM radios and other revenue.

The net loss for the quarter was $12.6 million, or 16 cents per share. Analysts were expecting a loss of 12 cents a share. Its net loss for the same quarter last year was $16.6 million, or 11 cents per share.

This was substantially affected by its ongoing lawsuit with NTP Inc. This caused RIM to take a $6.9 million non-cash charge. Essentially, the company is putting aside about 6% of its quarterly revenues to pay potential licensing fees to NTP. Therefore, its adjusted non-GAAP net loss for the quarter was $5.7 million, or 7 cents per share.

In November, a federal court ruled that RIM has infringed on five NTP patents related to wirelessly transferring email. NTP has asked the court to shut down the BlackBerry service. The two companies are currently in court-mandated arbitration.

The total number of BlackBerry subscribers increased by approximately 71,000 during the quarter to 534,000 subscribers and the total number of organizations with BlackBerry Enterprise Server installed increased to approximately 10,000 from approximately 8,500 in the prior quarter.

Aside from its legal problems, the company had a relatively good quarter. It announced agreements that will bring its BlackBerry email service to the Symbian OS and Microsoft’s Pocket PC and Smartphone. In addition, it began offering service in Europe, and introduced several new models.

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