TORONTO (AP) - BlackBerry smartphone maker Research In Motion said Thursday that its net income and revenue declined in the latest quarter, hurt by lower demand amid the economic slowdown and product delays.
RIM is also cutting an unspecified number of jobs to reduce costs. It gave an outlook well below Wall Street’s expectations for the current quarter and the full year.
The company’s stock fell sharply.
For the three months that ended May 28, Research In Motion Ltd. earned $695 million, or $1.33 per share. That’s down from $769 million, or $1.38 per share, a year ago.
Revenue for the fiscal first quarter rose 16 percent to $4.9 billion from $4.2 billion.
Analysts polled by FactSet expected earnings of $1.32 per share on revenue of $5.1 billion.
For the current quarter, RIM forecast earnings of 75 cents to $1.05 per share, excluding items. Analysts are looking for far higher earnings of $1.36 per share. The company expects revenue of $4.2 billion to $4.8 billion, below analysts’ average expectation of nearly $5.3 billion
RIM lowered its full-year earnings outlook sharply. It now expects earnings of $5.25 to $6 per share for fiscal 2012. In April, it had forecast $7.50 per share.
RIM said earlier Thursday that Don Morrison, its chief operating officer, is going on medical leave.
Aurion Capital Management analyst Greg Taylor said RIM is falling behind the iPhone and Android. He said the results reflect the fact that RIM doesn’t appear to have any new smartphones coming out soon.
“Everyone wants to have the newest and greatest device, and they don’t have anything to sell right now,” Taylor said. “Their guidance shows they’re basically not expecting new smartphones this quarter.”
RIM’s stock is already off 50 percent from its 52-week high. In April, the company slashed earnings and sales forecasts as it faces increased competition. In extended trading after the results came out, RIM’s stock fell $5.32, or 15 percent, to $30.01.
By Douglas Holtz-Eakin
The young drop coverage to avoid higher premiums
Independent voices from the TWT Communities
We welcome you to the intimate and personal thoughts on the news and events we, as editors, watch, read, and discuss with our writers every day.
Consummate traveler Todd DeFeo explores the unique stories that make destinations worth going to.
Looking at pop culture, politics and social issues.
Political commentary and literary criticism in an era of eroding liberty
Benghazi: The anatomy of a scandal
Vietnam Memorial adds four names
Cinco de Mayo on the Mall
NRA kicks off annual convention
California wildfires wreak havoc