News by Andrew Kameka on Thursday September 27, 2012.
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Research in Motion had a rough quarter, but the beleaguered BlackBerry maker's financial report for the second quarter of its 2013 fiscal year was slightly better than expected. As CEO Thorsten Heins revealed earlier this week, RIM actually grew its global subscriber base to approximately 80 million, up from the 78 million reported earlier this year. The company reported a $235 million net loss on $2.9 billion revenue, a 2 percent increase from revenues reported in the previous quarter.
Unfortunately for RIM, a better-than-expected quarter is not necessarily a good quarter. The $2.9 billion in revenue it reported is down 31 percent from the same period last year, and the value of its stock diluted $0.45 per share. RIM also reported that it shipped 7.4 million BlackBerry smartphones and 130,000 BlackBerry PlayBook tablets last quarter. That's down from the 7.8 million smartphones and 260,000 tablets shipped in the previous quarter. To put that in perspective, Apple sold more than 5 million iPhone 5's in three days, and Android activates more than 1.3 million devices daily.
There's still cause for optimism because RIM is showing signs of reversing its misfortune. RIM shares went up in the days following its announcement of better than expected subscriber growth and a promise to deliver BlackBerry 10 by early 2013. The company repeated that promise today and issued the following statement from CEO Thorsten Heins:
"Despite the significant changes we are implementing across the organization, our second quarter results demonstrate that RIM is progressing on its financial and operational commitments during this major transition. Subscribers grew to approximately 80 million global users, revenue grew sequentially from the first quarter, cash, cash equivalents, short-term and longterm investments increased by approximately $100 million to $2.3 billion, and carriers and developers are responding well to previews of our upcoming BlackBerry 10 platform. Make no mistake about it, we understand that we have much more work to do, but we are making the organizational changes to drive improvements across the company, our employees are committed and motivated, and BlackBerry 10 is on track to launch in the first calendar quarter of 2013."source: RIM
Andrew is based in Miami, Florida.