Research in Motion (RIM) reports Q1 earnings: misses expectations, layoffs expected, Q2 will not be any better
BlackBerry maker Research in Motion (RIM) reported its financial results for the first quarter of fiscal 2012 today. RIM reported a $4.9 billion profit in the quarter, well below the $5.5 billion analyst expectation. Revenue for the quarter breaks down into the following stats: 78% hardware, 20% service, and 2% software and other revenue. 13.2 million devices were shipped in Q1, lower than the 13.5 million expected.
As far as next quarter goes, Research in Motion expects a $4.2-$4.5 billion in revenue, again well below the $5.46 billion tossed around by analysts.
RIM Co-CEO Jim Balsillie stated: “Fiscal 2012 has gotten off to a challenging start. The slowdown we saw in the first quarter is continuing into Q2, and delays in new product introductions into the very late part of August is leading to a lower than expected outlook in the second quarter.” RIM also revealed that it plans to begin a new “program to streamline operations” that will eventually involve layoffs.
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