RIM to cut 5,000 jobs, delay new phones

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Excluding impairment charges, the latest loss was 37 cents per share. Analysts polled by FactSet were expecting a loss of 3 cents.

Revenue fell 43 percent to $2.8 billion, well below analyst expectations at $3.1 billion.

RIM said it shipped just 7.8 million BlackBerry smartphones in the quarter, down 41 percent from 13.2 million a year earlier.

Heins said the company is expecting the next several quarters to be “very challenging.” He said RIM is in the midst of a platform transition and faces an increasingly competitive environment. Research firm IDC says BlackBerry’s U.S. market share has plummeted from 41.1 percent in 2007 to 3.6 percent in first three months of 2012.

Colin Gillis, an analyst with BGC Financial, said the results and news of a BlackBerry 10 delay is far worse than the horrible news he had already expected. He said the worst quarters are still in front of RIM and management is not reducing expenses fast enough to compensate for the revenue decline. He expects this to be the last quarter that RIM will see subscriber growth and said he would not be surprised if RIM announces more layoffs by the end of the year.

“When a technology gets old, it’s not a slow fade. It’s a sharp cliff,” Gillis said. “There is very little market for old technology.”

Michael Walkley, an analyst with Canaccord, called the BlackBerry 10 delay dire and problematic in a rapidly changing technology sector.

“The biggest disappointment is the delay of the BlackBerry 10,” he said. “It’s extremely challenging for them to turn around the business when their new smartphone is launching that late.”

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