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RIM sales, revenue tank in Q4 2012 earnings report

News by Dan Seifert on Thursday March 29, 2012.

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RIM has just released its Q4 2012 financial report and there isn't much positive news to be found in it. The company reports down revenues and smartphone shipments over prior quarters, and it has announced that Jim Balsillie, former co-CEO, will step down as a Director on RIM's board.

RIM reports that 11.1 million BlackBerry smartphones and 500,000 PlayBook tablets were shipped in Q4 2012. Smartphone shipments are down 21 percent from the previous quarter, while revenues have fallen 25 percent from the same quarter in the prior year, settling in at $4.2 billion for Q4 2012. The company also reported a $125 million loss for the quarter, thanks to a write down on remaining stock of BlackBerry 7 smartphones and an "impairment of goodwill."

In addition to the dismal sales figures, RIM says that it will no longer provide "specific quantitative guidance" for its projected sales. RIM says this is due to "ongoing weakness in the Company's U.S. smartphone business, an increased focus on selling BlackBerry 7 smartphones to grow the subscriber base in advance of the BlackBerry 10 launch, increasing competitive pressure in the Company's international markets and the introduction of certain new lower tier service pricing initiatives and a higher mix of sales coming from entry level products."

Finally, RIM has announced that Jim Balsillie, former co-CEO, will step down as a Director of the company's board, effectively retiring him from RIM. Balsillie stepped down as co-CEO along with Mike Lazaridis 10 weeks ago when Thorsten Heins was appointed as the company's new CEO.

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About the author

Dan Seifert
Dan is MobileBurn.com's Editor-in-Chief. Based in Poughkeepsie in New York, Dan can be found on Twitter as @DCSeifert.

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