RIM Unprofitable, But With Good Reason

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Research in Motion has reported its first unprofitable quarter in a very long time. However, this was caused by the settlement of its lawsuit with NTP, not because the company isn’t selling plenty of BlackBerry wireless handhelds.

Revenue for the quarter was $404.8 million, up 92 percent from the same quarter of last year.

RIM would have earned $140.1 million, or 71 cents per share, during the quarter.

RIM However, last month RIM and NTP settled their long-running patent-infringement lawsuit. RIM was on the losing side, and as a result had to pay $450 million to NTP to settle.

RIM already had some money put aside to pay for this lawsuit, but the remaining amount was enough to give the company a net loss of $2.6 million, or 1 cent per share.

The total number of BlackBerry subscribers in the quarter increased by 470,000 to approximately 2.51 million total subscribers. This is more than double the number of subscribers a year ago.

Yearly Results

This was also the end of RIM’s financial year.

Net income for the previous four quarters was $213.4 million, or $1.09 per share. This is more than four times the company’s net profit from the previous financial year.

“Momentum continued throughout the fourth quarter with subscriber growth and operating results both exceeding expectations,” said Jim Balsillie, Chairman and Co-CEO at RIM. “We continue to execute our business plans effectively as demand for BlackBerry grows around the world. RIM expects to surpass 3 million BlackBerry subscribers in the current quarter and we are planning to launch BlackBerry with an additional 100 carriers this year.”

Thanks to Gillian White from BlackBerryCool.com for the tip.

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