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Massive delay does not sit well amid falling earnings

Waterloo, Ontario-based Research in Motion, Ltd. (TSE:RIM) tried to put on its most cheerful face reporting its fiscal Quarter 3 2012 earnings (calendar quarter 4 2011).  The numbers weren't great, but they weren't worse than expected either, living up to analysts' somewhat grim predictions.

I. RIM Can't Find an LTE Chipset to Save Its Life

The biggest story was not the earnings itself, but the earnings call in which RIM announced its BlackBerry 10 OS would be delayed half a year.  Wrote Canadian brokerage firm National Bank Financial, "RIM confirmed the BlackBerry 10 smartphones will be delayed until the latter part of calendar 2012. This could be game over for the BlackBerry franchise."

Nomura analyst Stuart Jeffrey in a research note to investors concurred that this could be the end for RIM or at least was a huge hit.  He writes, "We see a high risk that this is too late to turn around RIM's position and believe the risk of further delays is meaningful.  Even in the best case, however, it seems unlikely RIM will have large volumes of its BB10 devices on sale within 15 months."


BBX -- or should we say "BlackBerry 10" -- has been delayed half a year. [Source: RIM]

RIM's co-CEOs, Mike Lazaridis and Jim Balsillie, defend the decision to push the future of the company, well... into the future.  They said that RIM would "bounce back" from "some of the most difficult times in the history of this company".

In the conference call Mr. Lazaridis blamed the delay partially on RIM's inability to find an LTE capable chipset, a somewhat astounding excuse given the volume of LTE chipsets.  He states:

As I said on the last earnings call, we are focused on delivering a high quality, fully featured user experience when these products are launched. This means having a well-developed ecosystem of publications and services both in the hardware specifications, industrial design, and application features that will meet the expectations of consumers in the competitive US market. To achieve this goal, we need a highly integrated dual core LTE platform. The processor we selected offers industry-leading power and efficiency, and also allows us to deliver the industrial design that we believe is critical to the success in this market segment. This chipset will not be available until mid-2012, and as a result of this and certain other factors, we now expect our first BlackBerry 10 smartphones to reach markets in the latter part of calendar 2012.

For their failure the pair of co-CEOs have agreed to take pay cuts down to a $1 USD/year salary, effectively immediately.

II. "I find your lack of confidence disturbing" 

Investors' patience with the pair is waning.  Several high profile investors have put together plans advising the company to revamp its bizarre management structure.  They also suggests exploring the option of a sale.
 
RIM co-CEO Jim Balsillie
RIM co-CEO Jim Balsillie may be all laughs and grins, but his company's increasingly abysmal U.S. sales outlook has given investors little to crack a smile about. [Image Source: Reuters]

To recap the latest developments: It's hard not to be skeptical of RIM's future given its increasing abysmal string of misfires and embarassments in the last three months.

All this seems very ironic given Mike Lazardis's 2009 quote to Fortune -- "Sometimes we have to put the brakes on.  We've shown that we can handle annual 100% growth. I'm not sure we could handle more than that."

It's certainly done a remarkable job putting the brakes on its growth, that can be said for it.

III. The Financials

Now back to the financials themselves.

For the revenue RIM cheerfully highlights, "Revenue of $5.2 billion, up 24% from last quarter."

That $5.223B USD (GAAP adjusted) is a far cry from RIM's original outlook of $5.3B-$5.6B, which it was forced to adjust downwards just weeks ago, in an effort to soften the blow.  It's also down 4.95% from the company's reported revenue $5.495B USD in fiscal Q3 2011, a year ago.

Why compare to fiscal Q2 2012 only, when Q3 revenue has always been higher than Q2 revenue for RIM?  Such quarter-to-quarter comparison are not unusual, but companies typically put both the quarter-to-quarter and year-to-year numbers in the highlight, if they differer substantially.  

RIM reports a "GAAP net income of $265 million or $0.51 per share diluted; adjusted net income of $667 million or $1.27 per share diluted."

This is down from a net revenue of $877M USD ($1.67 USD/share) in Q3 2011, a plunge in profits of 22.7 percent.

About the only hopeful numbers for RIM come in its subscribe counts, which rose 35 percent on a year to year basis, hitting "almost 75 million", with 14.1 million BlackBerry smartphones sold in Q3 2012.  But that optimism is tempered by the fact that the global smartphone market is growing is predicted to have grown 55-57 percent in 2011. 

In other words, the comprehensive picture from the earnings report is that RIM may be growing its subscribers, but it's falling behind its competitors in growth and is seeing its profitability plunge.

BlackBerries in the trash
[Image Source: LihPao]

Perhaps most telling is the fact that RIM has only $1.5B USD in cash on hand.  That means that just one or two quarters in the red could sink the veteran firm.  For that reason, it's hard not to agree with the analysts at the NBF -- this could be "game over" for RIM.

Sources: RIM, Barrons, Reuters



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LTE chipsets
By nafhan on 12/16/2011 11:55:07 AM , Rating: 2
So, not mentioned in the article, but Apple still doesn't have an LTE equipped phone, either. It seems possible to me that both of them are waiting for an LTE chipset that actually has reasonable power usage before releasing a device with LTE. Granted, the LTE thing does sound more like an excuse than a reason for delaying new devices (just release the new stuff with 3G).




RE: LTE chipsets
By dubldwn on 12/16/2011 12:35:07 PM , Rating: 2
quote:
It seems possible to me that both of them are waiting for an LTE chipset that actually has reasonable power usage before releasing a device with LTE.


It's not just possible - that's what they're doing. Apple will get away with it. Under normal circumstances BB would, too. Qualcomm has finished their low power LTE radios and they are being tested. I agree with you though - delaying the OS because of that doesn't make much sense.


RE: LTE chipsets
By NellyFromMA on 12/16/2011 12:57:43 PM , Rating: 2
It was just reported that Verizon is trying to force its carriers to implement LTE as its pushing it big this coming year. This is (supposedly) the current reason why VZW is not picking up more WP7 handsets, because they too do not have plans to implement LTE in the near-term.

Apple can, of course, gets away this due to its large volume of sales despite the fact.

Maybe this is a similar situation for Rim?


RE: LTE chipsets
By mcnabney on 12/16/2011 1:26:12 PM , Rating: 2
Verizon is trying to move their entire network to LTE as fast as possible. They can't do anything about Apple, but they can be assured that the Apple consumers will all be running LTE devices shortly after the generation following iPhone5 this summer. Android is already running LTE. I imagine their position is that they can easily get a customer interested in WP7 or BB to get a Droid instead. They are just trying to move the market to an all-data platform (VoLTE). And if it will speed the retirement of CDMA, I am all for it.


RE: LTE chipsets
By retrospooty on 12/16/2011 5:05:55 PM , Rating: 2
"not mentioned in the article, but Apple still doesn't have an LTE equipped phone, either"

True, but Apple has a phone that people want. RIM is already several years late to the decent mobile OS party and now they are blaming the next delay on a chip LOL. IOS released in June 2007. Even slowpoke Palm came out with a competing offer 2 years later, and they are totally disfunctional. Its now been almost 5 years and RIM still has no Phone OS to match.

Beyond that, what is taking them so long with QNX. It WAS released on the playbook earlier this year in at least decent form. Its not getting great reviews, but it is a good OS with alot of promise. What is taking 1 1/2 years from Playbooks working QNX release to get it on a freegin phone and why does the lack of a 4G chip delay releasing for 6 months? There are 3G options out there.

Bah, its all spin and excuses for total lack of management.


RE: LTE chipsets
By Pirks on 12/18/2011 1:12:23 PM , Rating: 3
If you weren't an anti-RIM troll with agenda you'd also realize that 1) MS is way more behind RIM in tablets, they don't even have a SINGLE one decent ARM tablet with Windows or WP7 and 2) it took 5 years for Apple to come up with their iPad franchise as well, it wasn't created overnight like you think.

So what we have here: RIM is ahead of MS in tablets, RIM's tablet rivals iPads in quality while the rest is cheapo Android junk, barely usable and ugly, and does not sell AT ALL, but still a few trolls like you or JM pretend that RIM is doomed and MS is not. So, the business as usual eh :)))


RE: LTE chipsets
By Cheesew1z69 on 12/18/2011 2:54:53 PM , Rating: 2
http://technolog.msnbc.msn.com/_news/2011/12/16/94...

quote:
RIM finally eked out a decent quarter. Beat analyst estimates, even. That is, if you don't count the $485 million bath the company took on unsold tablets . The PlayBook — ill conceived, poorly executed — is RIM's worst product . And it might just take down the whole company.


RE: LTE chipsets
By Pirks on 12/18/11, Rating: 0
RE: LTE chipsets
By Cheesew1z69 on 12/19/11, Rating: 0
RE: LTE chipsets
By retrospooty on 12/19/2011 9:41:01 AM , Rating: 2
He gets ruders and dumber by the day. Not only does he not see reality anymore, he doesnt even bother to read the posts he responds to or put things in context anymore. WTF? Pirks used to at least put up SOME valid points, now its like debating with a toddler... Its just pathetic.


RE: LTE chipsets
By Cheesew1z69 on 12/19/2011 10:06:09 AM , Rating: 1
Yep, it's sad to see such a decline in people, maybe he has dementia.


RE: LTE chipsets
By Pirks on 12/19/2011 11:06:46 AM , Rating: 2
Yep, cheesy has dementia definitely, otherwise he'd see "By Brian Barrett Gizmodo " at the top of his article. He's getting dumber by the day, you're right retro :)


RE: LTE chipsets
By Cheesew1z69 on 12/19/2011 11:23:03 AM , Rating: 1
Hey jerk off, I don't READ Gizmodo site, so if it's Gizmodo or not, I don't pay attention. Obviously the link I posted came from MSNBC, not Gizmodo.


RE: LTE chipsets
By Pirks on 12/19/11, Rating: -1
RE: LTE chipsets
By retrospooty on 12/19/2011 9:37:57 AM , Rating: 3
You are responding to outer space here. What are you talking about Read the comment again, its about LTE chipsets and RIM's excuses for not releasing QNX on phones for another year.

#1 - This isnt about tablets, we are talking phones.
#2 - This isnt about MS we are talking RIM.
#3 - If you want to bring in MS, they DO have a little Operating System business and a small product called XBOX that sell for multiple billions in Revenue. RIM has phones and that's about it (you may not want to add playbook considering all the money they lost on it.)



RE: LTE chipsets
By Pirks on 12/19/2011 11:28:01 AM , Rating: 2
quote:
its about LTE chipsets and RIM's excuses
It's more about you trolling only RIM, not the other companies who do exactly the same. Why don't you troll Apple or MS because they also don't have LTE phones? Why do you only troll RIM and not the other similarly lagging companies?


RE: LTE chipsets
By retrospooty on 12/19/2011 11:40:06 AM , Rating: 2
Again, nitwit, you miss the subject matter completely. Read the article title again REALLY SLOWLY.

RIM is saying they wont release QNX on phones in 6 months because there is no decent LTE chipset. THAT is the subject.

Why not release it 3G?
Why not use one of the many 28nm chips coming out in Q1 like Apple says its waiting for
Why is it a 6 month delay on something that is already 6 months out? Other companies release all there stuff on 4G, or do like Apple and stick with 3G.

Why? Becasue its a BS excuse for mismanagement. Thats why. - done.


RE: LTE chipsets
By Pirks on 12/19/2011 12:01:13 PM , Rating: 2
quote:
Why not release it 3G?
Why release it in 3G and spend precious resources to get the older boring phone out that not many US customers would be interested in? RIM needs cool attractive and FASHIONABLE stuff, LTE is all the buzzword these days, so RIM is betting on the newest coolest tech in order to drive sales in the future. Hence they'll polish the new OS and write additional software and apps for it while waiting for the new fashionable chips to arrive. The result will be much better phone that doesn't drain battery like the current Android LTE junk does. You're just too dumb to understand this, or you have an agenda. Or both :)))


RE: LTE chipsets
By retrospooty on 12/19/2011 12:47:26 PM , Rating: 2
OK, I give. You are right. RIM taking another year to release QNX on a phone and waiting for a decent 4G chip is a good idea. Go RIM!


I can't help but feel that LTE is over-hyped.
By idiot77 on 12/16/2011 12:07:20 PM , Rating: 2
LTE sounds great, and I would have loved to been able to put it to good use. However, the cap on data plans makes having all that bandwidth almost pointless.

I never felt like needed faster data on my 3G phone on Verizon. It's slower than my computer, but then again I'm not entirely sure my Droid 3 would be able to display web pages any faster with a faster pipe even with an AOSP ROM.

I certainly don't use video on my phone except on very rare occasion. So who needs a fat pipe when your pool is only 6" deep anyhow?

Where I would have loved to have LTE was in the rural places where you can't get broad band of any kind. Too bad that's not where the service is.




RE: I can't help but feel that LTE is over-hyped.
By bug77 on 12/16/2011 12:20:38 PM , Rating: 2
quote:
LTE sounds great, and I would have loved to been able to put it to good use. However, the cap on data plans makes having all that bandwidth almost pointless.


And that's the real danger of having data caps. Once in place, there's no guarantee they'll follow data transfer speed improvements. I mean, 5GB may seem more than reasonable today, but nothing guarantees that 10 years from now that limit will be elevated by a single kB.


RE: I can't help but feel that LTE is over-hyped.
By name99 on 12/16/2011 4:24:03 PM , Rating: 2
Look, this is just dumb.

(a) The carriers cannot deliver more total capacity than the system is engineered for. Bandwidth caps or not, there is only so much to go round.

(b) Bandwidth that is NOT sold to a user is like an airline seat that is not sold --- it does no-one (including the carrier) any good.

(c) LTE substantially improves spectral efficiency, meaning that there will be that much more total capacity. Either that gets used allowing more people to use smartphones (which seems fair), or it goes unused because people hit their data caps --- in which case the carriers will increase the data caps.

The bottom line is that
- someone has to pay for the system
- it is simply a fact that there is not enough wireless capacity for us all to do whatever we want with it.

I'm no fan of the carriers, and I think plenty of the things they do are stupid, petty, and self-destructive. But I'm also no fan of this idiotic mindset that simultaneously complains about
(a) data caps (a symptom that we don't have enough capacity) AND
(b) LTE (an attempt to increase the capacity)


RE: I can't help but feel that LTE is over-hyped.
By bug77 on 12/17/2011 9:47:52 AM , Rating: 3
quote:
Look, this is just dumb.


If you're a carrier, maybe.
If I pay for 30Mbps, I expect to be able to use that 30Mbps, day or night. If you can't provide that, don't sell 30Mbps plans. It's that simple.
And before you think of some alternative theories, I'm not in the US, I pay for 30Mbps and I get 30Mbps, day or night. It's DSL, not LTE, but it's still ISP rules.


RE: I can't help but feel that LTE is over-hyped.
By Dorkyman on 12/19/2011 10:19:33 AM , Rating: 2
What I don't understand is that there is now news that LTE and GPS don't play well. How can LTE be allowed to continue, given that incompatibility?

I don't expect the FCC to say, "Sorry consumers, your GPS units are crap, gotta buy new ones with tighter filters."

And the LTE approval process stinks of politics. Could it be that LTE is eventually banned?


RE: I can't help but feel that LTE is over-hyped.
By Cheesew1z69 on 12/19/2011 10:28:53 AM , Rating: 2
It's LightSquared that is having the problem. Does Verizon and the others use LS?

http://venturebeat.com/2011/12/11/lightsquared-gps...


By Dorkyman on 12/19/2011 1:11:34 PM , Rating: 2
So then the LTE concept doesn't necessarily interfere, just Lightsquare's implementation? There are other LTE vendors that don't show interference?

My understanding was that the spectrum slot allocated to LTE was meant to be for satellite communications, implying very weak signals on the ground, and that politics in Washington decided that a strong signal could be blasted from terrestrial antennas, something never originally intended for that slot. Am I missing something?


RE: I can't help but feel that LTE is over-hyped.
By adiposity on 12/16/2011 1:21:44 PM , Rating: 3
While I agree I don't like data caps (I have grandfathered unlimited data from Verizon), I disagree that they make LTE "pointless".

The bottom line is most people don't use a lot of data on their phones. But when they do, wouldn't it be nice if it were incredibly fast? For example, when I download large android apps, they take a few minutes to download. Sometimes that's quite inconvenient, if the app will solve an immediate problem. A 10 second download would improve my experience drastically.

There is no need to use large amounts of bandwidth to appreciate increased speed.

Now, granted, higher bandwidth opens the door to streaming, etc. And if you are going to do those things, you will probably need more data. But just because there are caps that discourage those things, doesn't mean the higher speed is useless! It just means it doesn't translate to higher total usage available.

As someone who rarely streams, and has no intention of watching many videos on my 4" screen, I would still like LTE, if it doesn't waste power as it currently does.


RE: I can't help but feel that LTE is over-hyped.
By 3DoubleD on 12/16/2011 3:39:01 PM , Rating: 2
You make 3G sound like dial-up. I can get large (>30 MB) apps in a matter of seconds over 3G on my Motorola Droid, and it's not even the latest and greatest of the 3G tech.

This whole LTE thing is marketing hype. The same as putting a quad core in a smartphone. Yes there are cases where it offers better performance, but the rest of the time it's just killing your battery, or at best, offering no tangible difference. I need LTE in my smartphone like I need a hole in my gas tank in my car.

Instead of worrying about constantly increasing network bandwidth, please invest in:
1) Amazing displays,
2) Lean and optimized ROM builds,
3) Great battery life
4) Great signal coverage and reception
5) Competitive pricing and services

The only items carriers should be worried about is #4 and #5. You compete with these items. The rest they should leave to the handset manufacturers.


RE: I can't help but feel that LTE is over-hyped.
By adiposity on 12/16/2011 6:23:51 PM , Rating: 4
quote:
You make 3G sound like dial-up. I can get large (>30 MB) apps in a matter of seconds over 3G on my Motorola Droid, and it's not even the latest and greatest of the 3G tech.


From 2010:

http://www.pcworld.com/article/189592/atandt_roars...

The speeds have changed a little since 2010, but basically, the average speed was between .8mbps (verizon) and 1.4mbps (at&t).

A 30MB file is 240Mb. Divide that by .8 (Verizon, which I use) and you get 300 seconds.

That's great that you can download 30MB file in a "matter of seconds" but 300 is a large "matter". The speed in your area may be faster than in mine (I live in bay area). Who knows. But if the average time to download a 30MB file is 5 minutes, then you are an outlier (or just a liar :p).


By twhittet on 12/16/2011 6:33:38 PM , Rating: 3
+1 for actually using facts rather than an exaggerated personal observation.


By rubbahbandman on 12/16/2011 7:49:25 PM , Rating: 3
I'm far more impressed with anecdotal evidence. This "math" business is very fishy to me...


Quit Dogging on RIM
By bertomatic on 12/16/2011 1:38:29 PM , Rating: 2
Seriously? Revenue of $5.2 billion, net income of $667, subscribe counts, which rose 35 percent. That all sounds pretty great to me. THey are NOT loosing money, they are growing . How the hell is 5.22B a "far cry" from 5.3B? Really? "only" $1.5B USD in cash? 1.5B is a TON of money people. RIM is fine, its just a competitive market. I wish I made 667 million last quarter. That would be AWESOME!. NO ONE has a decent LTE chipset yet, big deal. RIM is NOT dead, or dying. Anyone who says such nonsense is an f-n idiot.




RE: Quit Dogging on RIM
By Da W on 12/16/2011 2:48:48 PM , Rating: 2
Then i may be a f-n idiot cause RIM is f-n dying!
They won't be able to match Apple or Google or even Microsoft in features, OS quality or number of apps. So for the same price, why choose an inferior product that is still little more than an e-mail machine?

They have to compete on offering cheap products that just get the job done: getting e-mails. That's what boomers want.

And before somebody bashes on Windows Phone, go look at numbers outside the US.


RE: Quit Dogging on RIM
By retrospooty on 12/16/2011 5:08:25 PM , Rating: 2
Yup, and alot of people fall back on RIM's enterprise support. Its true, highly secure and also highly paranoid IT pro's like the control, but believe me, even they are being beaten up by their users to get them Androids and iPhones. People are tired of the museum phones that Blackberry is shipping.


RE: Quit Dogging on RIM
By Pirks on 12/18/2011 1:02:26 PM , Rating: 2
Don't listen to this anti-RIM troll, he's lying as usual. I know what BB7 is, got one of the phones, the full screen/touch one, and it's very far from being "museum" at all, got GPS, navigation, slick fast web browser that rivals the speed of the one in iPhone 4, and all the other stuff you'd expect from a modern smartphone - multitouch, apps, games, what not.

If you wanna get real info about RIM's products - do not listen to trolls like retro or JM, these two have an agenda. They present RIM in very unobjective way. Go to a wireless/cell store and try some new BB7 phone for yourself, only then you'll get the TRUE picture of what the device is about. I know what BB7 is, I know this is not ideal device for everyone, Android or iOS or WP7 may be better for some, but I KNOW FOR SURE THAT JM AND RETRO ALWAYS LIE ABOUT RIM, ALWAYS! Guys, check out BB7 for yourself, do not trust those trolls' "reviews"! I can't stress enough how important this is. You trust the troll - you'll waste your money. Plain and simple.


RE: Quit Dogging on RIM
By Cheesew1z69 on 12/18/2011 6:58:53 PM , Rating: 2
quote:
Don't listen to this troll
Pot....Kettle...


RE: Quit Dogging on RIM
By retrospooty on 12/18/2011 9:12:53 PM , Rating: 2
I have not said one lie about RIM. I am just pointing out the obvious. BB7 phones are selling like crap. No-one wants them. You on the other hand keep insisting how great they are doing in spite of profits tanking, revenue tanking, stock massively tanking to 10% its previous high 3 years ago and negative reviews all over the place. Now the fact that they are delaying their unreleased "answer" - QNX OS from mid 2012 to late 2012. Where do you think Apple and Android will be in another year? Stagnant? Hell no.

No lies there buddy, but lots of denial on your end.

But you keep on trying... I am sure you'll convince someone that RIM is worth buying a phone from.


RE: Quit Dogging on RIM
By Pirks on 12/18/2011 10:31:25 PM , Rating: 2
quote:
BB7 phones are selling like crap. No-one wants them.
Do the most recent quarter numbers like 14 million phones sold and 75 million subscribers reached mean "no one wants them"? If you seriously think so - you have to see a doctor, go check your head or something. This is ridiculous. Your lies are totally insane man...


RE: Quit Dogging on RIM
By retrospooty on 12/19/2011 7:01:41 AM , Rating: 2
In an industry that is growing insanely fast RIM's sales are declining. You keep wanting to deny that and finding facts that RIM feeds out to show they arent in total freefall, and that's fine if you believe it. I dont and neither does most of planet Earth. I am done with your lunacy and back and forth baiting.

Wanna make another bet? I know you are afraid to take my last bet that by Oct of 2012 RIM's problems would be undeniable and #'s would be down all over... Now that they delayed QNX until late 2012, that bet seems like its too easy now (for my side).

New bet - 2012 will be the year that RIM's gets passed on by a large porotion of the enterprise market. Yes, their sales will be down even in enterprise.


RE: Quit Dogging on RIM
By Pirks on 12/19/2011 11:35:09 AM , Rating: 2
quote:
RIM's sales are declining
14 million sold phones and 75 million subscribers shows the sales are GROWING actually. Stop lying.


RE: Quit Dogging on RIM
By retrospooty on 12/19/2011 11:51:00 AM , Rating: 2
REally dood, you need to just stop. Its bad enough when RIM posts "pick and choose" facts to try adn conceal whats going on, but even they arent claiming sales are not dipping (in an industry that is growing fast). You are the only one that still thinks that. Every quarter that goes by the truth becomes more evident.

http://seekingalpha.com/article/309311-blackberry-...

http://www.computerweekly.com/news/2240112722/RIM-...

http://www.eweek.com/c/a/Mobile-and-Wireless/RIMs-...


RE: Quit Dogging on RIM
By Pirks on 12/19/2011 12:20:25 PM , Rating: 2
Really dood, you need to just stop nitpicking the US market share and US sales and ignoring ALL THE OTHER countries. I don't care about the US as long as RIM posts growth in the rest of the world.


RE: Quit Dogging on RIM
By retrospooty on 12/19/2011 12:45:35 PM , Rating: 2
Worldwide sales are declining. Worldwide revenue is declining. Worldwide profit is declining. How much clearer does this need to be?

n/m. I give up. You must know something that the rest of us dont. ugh.


RE: Quit Dogging on RIM
By Pirks on 12/19/2011 12:57:27 PM , Rating: 2
They still sold more phones this quarter than the last one, they got a few million new subscribers, and they are still among the top smartphone vendors (or even number one smartphone vendor, sales wise) in a few countries like UK, but of course the US market share is the only meaningful metric and the world outside the US is an empty wasteland. Sure, whatever you say sir :)))


You sure?
By bug77 on 12/16/2011 11:51:52 AM , Rating: 2
$5.2B is under 8% less than $5.6B. You sure that's a far cry?




RE: You sure?
By JasonMick (blog) on 12/16/2011 12:06:55 PM , Rating: 1
quote:
$5.2B is under 8% less than $5.6B. You sure that's a far cry?
Yes in the business world, cutting your outlook 8 percent could fairly be considered a "far cry" though of course they'll try to put a cheerful spin on it.

But I really think the more important number to look at is the GAAP adjusted net income. It fell 22+ percent. And RIM only has $1.5B USD in the bank. If it doesn't do something fast, it may soon be posting losses within a year or two and it doesn't appear to have anywhere near enough cash to weather that storm.

That's why I think it's fair to be critical of the delays and the company's current management direction.

I'd actually love to see RIM succeed as more competitors means more competition and more competition means better products. Now, I would have loved to see Palm/Hp succeed, too, but we can't always get what we want. I just don't think RIM's current strategy is cutting with consumers, although they remain popular with some hardcore users (including doubtless some readers of this site).


RE: You sure?
By bug77 on 12/16/2011 12:17:40 PM , Rating: 3
quote:
I really think the more important number to look at is the GAAP adjusted net income .


For you, maybe. I don't even know what that means :-D


RE: You sure?
By bug77 on 12/16/2011 12:50:11 PM , Rating: 2
Now I know.


RE: You sure?
By Da W on 12/16/11, Rating: 0
RE: You sure?
By Ringold on 12/16/2011 1:07:48 PM , Rating: 1
quote:
But I really think the more important number to look at is the GAAP adjusted net income. It fell 22+ percent.


Brutal.. I don't know if they can avoid being taken over or at least seeing a lot of heads roll before BB10 hits. Like others have said, better to get a 3G version out while people wait to get a tourniquet on that bleeding.


RE: You sure?
By bobdelt on 12/16/2011 2:17:07 PM , Rating: 3
How do they burn through their cash with POSITIVE CASH FLOWS?

They are still making money. They are not depleting their cash reserves.

They could operate for years with the financial condition of the company. It's not doom and gloom because of their financial condition, but because they have no product to compete. It's over. But they have years and years of trying before they fold. I doubt they're even a probable acquisition target at this point, the market is too mature.


RE: You sure?
By Pirks on 12/18/2011 12:44:51 PM , Rating: 2
quote:
How do they burn through their cash with POSITIVE CASH FLOWS?
You should ask this question to reasonable/adequate analysts on the other sites/forums, asking trolls like JM or retro is like talking to a mechanical doll. They will always tell you same mechanically programmed story that RIM is doomed just because the US market share is falling and market analysts THINK that RIM stock is worth nothing. Remember - market does not care about what tech RIM has on hands, market these days only cares about US market share. RIM can post all sorts of gains in international markets, people can kill each other in long lines trying to get fresh new BB7 phone in Thailand and all sorts of stuff like that, but JM and retro trolls will ignore this stuff on purpose. These two are very predictable, they will ALWAYS ignore ANY positive news about RIM and always spin ALL the negative bits they can find. Don't waste your time.


RE: You sure?
By robinthakur on 12/19/2011 7:53:54 AM , Rating: 2
quote:
And RIM only has $1.5B USD in the bank


This is the truly shocking stat here, but you can see that they have wasted the money on things like the Playbook and other things which failed to take off. Meanwhile, Apple has more cash than the US government! Sounds like RIM have loads of R&D to do to get close to getting OS10 out the door, but by that time, who are they going to be competing with? iOS6? Ice Cream Sandwich? They have totally missed the competition boat even worse than MS, at least MS have a decent product out there.


RE: You sure?
By Pirks on 12/19/2011 11:31:33 AM , Rating: 2
http://www.dailytech.com/article.aspx?newsid=23535...

"Economics 101
By Strunf on 12/19/11, Rating: 2
By Strunf on 12/19/2011 8:00:34 AM , Rating: 2

"Perhaps most telling is the fact that RIM has only $1.5B USD in cash on hand. That means that just one or two quarters in the red could sink the veteran firm."

For a company that is worth $7B USD that is a load of money, more so when they are making money. Even if they come up red it doesn't mean they will sink, there are plenty of companies that have seen red for years and keep going, how often has AMD turned a positive profit? sure note the same thing but RIMM probably has a bunch of patents that I'm sure some would pay a load of money to get.

I'm not saying they have a bright future ahead but they are still in the game!"


Oh darn....
By Cheesew1z69 on 12/16/2011 6:37:33 PM , Rating: 2
quote:
RIM finally eked out a decent quarter. Beat analyst estimates, even. That is, if you don't count the $485 million bath the company took on unsold tablets. The PlayBook — ill conceived, poorly executed — is RIM's worst product. And it might just take down the whole company.


http://technolog.msnbc.msn.com/_news/2011/12/16/94...

But, according to Pricks, it's the BEST TABLET EVARRRRRRRRRRRRRRRRRRRRRRRRRRR!




RE: Oh darn....
By Pirks on 12/18/2011 12:51:11 PM , Rating: 1
Stop ejaculating on iPads just because they sell so well, 'cause if you keep ejaculating on iPads then Tony will join your cum fest. And you don't want to cum together with Tony do ya punk? :)))


RE: Oh darn....
By Cheesew1z69 on 12/18/2011 9:38:24 PM , Rating: 2
You and Tony can keep jerking off on each other. And what IPAD has to with what I posted is beyond me. I guess you can't handle the facts and just spout whatever BS you can think of. You obviously don't get how much of an idiot you look like.

RIM is failing. You can't handle it. Awww, poor Pricks.


RE: Oh darn....
By Pirks on 12/18/2011 10:35:37 PM , Rating: 1
Well, if you think that PlayBook sucks because it doesn't sell well then you also must think that iPad rocks since it sells so well, hence you have Tony's dick deep inside you while you're ejaculating on his iPad or something.


RE: Oh darn....
By Cheesew1z69 on 12/19/2011 8:23:57 AM , Rating: 2
There is no doubt in my mind now that you have some serious mental issues.

It's going to be a glorious day when you get banned.


RE: Oh darn....
By Pirks on 12/19/2011 11:42:23 AM , Rating: 2
Well, since they didn't ban swearing brainless doll like you... I feel pretty safe about this one :)))


RE: Oh darn....
By simsony on 12/19/2011 1:35:38 PM , Rating: 2
Pirks is faaaar too entertaining to be banned. I bet the DT moderators know this too.


RE: Oh darn....
By retrospooty on 12/19/2011 3:12:18 PM , Rating: 2
I thought he was more entertaining back when he at least came up with some decent points and somewhat logical arguments.

Now he is just Iraqi Information minister. http://www.welovetheiraqiinformationminister.com/#...


RE: Oh darn....
By Cheesew1z69 on 12/19/2011 3:18:53 PM , Rating: 2
Far from entertaining, but to each his own I guess. Rude and crude is not entertaining on a forum.


No LTE chipset
By name99 on 12/16/2011 4:13:05 PM , Rating: 2
"In the conference call Mr. Lazaridis blamed the delay partially on RIM's inability to find an LTE capable chipset, a somewhat astounding excuse given the volume of LTE chipsets.
"

Oh don't be stupid, Jason. It's not that RIM can't find LTE chipsets, it's that they can't find LTE chipsets that don't suck. This is exactly the same thing Apple has said.
The current chipsets obviously use way too much power. It also wouldn't surprise me if they're buggy and unstable, and if that's at least part of the reason that every review on an Android LTE phone seems to talk about frequent crashes and reboots.




RE: No LTE chipset
By retrospooty on 12/16/2011 5:10:12 PM , Rating: 2
"It's not that RIM can't find LTE chipsets, it's that they can't find LTE chipsets that don't suck"


Ever heard of 3G? You cant delay your already several years late OS becasue of that. Release it on 3G ffs! ITs nothing but a copout answer covering their ineptitude.


RE: No LTE chipset
By Cheesew1z69 on 12/16/2011 6:43:18 PM , Rating: 1
quote:
every review on an Android LTE phone seems to talk about frequent crashes and reboots


Please link to these so called "reviews", because quite frankly, I think you are full of shit.


RE: No LTE chipset
By robinthakur on 12/19/2011 7:58:27 AM , Rating: 2
The Gizmodo ones, to think of some off the top of my head, though whether this is to do wih the chipsets or the fact that the phones are 4G, is not made clear. The universally awful battery life/power drain puts me in mind of the early 3G phones and is the biggest factor in Apple and RIM not wanting to launch LTE phones yet. Nobody is going to buy an iPhone/BB which has worse battery life than that which comes before it. That and not everywhere even has LTE/4G networks yet e.g. the UK.


RE: No LTE chipset
By TakinYourPoints on 12/18/2011 8:48:45 PM , Rating: 2
You beat me to it. This is exactly the problem, existing LTE chipsets are large and not power efficient at all.

Anandtech, the good website that inexplicably has DT on the sidebar, went over this months ago: http://www.anandtech.com/show/4925/why-no-lte-ipho...

Smaller and more efficient LTE chipsets why some companies are waiting. It isn't just about availability, it is about incorporating LTE without reducing battery life and increasing size from preior gen products. Battery life is supposed to improve with each generation, not decrease.


RE: No LTE chipset
By retrospooty on 12/18/2011 9:07:05 PM , Rating: 2
True, but in RIM's case its just an excuse. Another cop-out answer for mismanagement. RIM could have done 4G, like most phone makers did or ever easier done 3G. Apple makes a great phone with 3G that obviously millions of people love, but RIM is delaying thier next gen phones from 6 months away to 1 year away because of a 4G chipset? Come on.


Android or iOS client
By dani31 on 12/16/2011 12:12:06 PM , Rating: 2
They will design clients for Android and iOS in order to keep their back-end alive.

I am locked into BB for work, and I connot wait for it, to be honest.




RE: Android or iOS client
By jimbojimbo on 12/16/2011 3:34:41 PM , Rating: 2
They already are. It's called Mobile Fusion
http://us.blackberry.com/business/software/mobilef...


RE: Android or iOS client
By dani31 on 12/17/2011 6:38:49 AM , Rating: 2
Well, Mobile Fusion seems to be a security and management platform, rather than a Blackberry email/calendar/contacts client for Android and iOS.


LOL
By SlyNine on 12/18/2011 11:27:12 AM , Rating: 2
quote:
For their failure the pair of co-CEOs have agreed to take pay cuts down to a $1 USD/year salary, effectively immediately.


Good, these people finally figured out what they are worth.




Economics 101
By Strunf on 12/19/2011 8:00:34 AM , Rating: 2
"Perhaps most telling is the fact that RIM has only $1.5B USD in cash on hand. That means that just one or two quarters in the red could sink the veteran firm."

For a company that is worth $7B USD that is a load of money, more so when they are making money. Even if they come up red it doesn't mean they will sink, there are plenty of companies that have seen red for years and keep going, how often has AMD turned a positive profit? sure note the same thing but RIMM probably has a bunch of patents that I'm sure some would pay a load of money to get.

I'm not saying they have a bright future ahead but they are still in the game!




"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad














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