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BlackBerry Playbook
RIM stock plummets in after hours trading after it reports fiscal Q2 earnings

We reported earlier today that dark clouds were looming over Research In Motion. This afternoon, RIM announced its fiscal Q2 earnings [PDF] and things aren't looking so pretty. The company reported net income of $695 million for the quarter compared to $934 million in fiscal Q1. Its fiscal Q2 earnings were also down compared to the $769 million in made in the same quarter last year.

RIM stock is taking a beating in after hours trading, currently down 15.11 percent to $29.93.

When it comes to hardware sales, RIM announced that it shipped over 13 million BlackBerry smartphones and roughly 500,000 Playbook tablets. RIM wouldn't specify how many Playbooks it has actually sold at this point. 

For his part, RIM Co-CEO Jim Balsille had this to say about this company's performance during fiscal Q2: 

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’s business is profitable and remains solid overall with growing market share in numerous markets around the world and a strong balance sheet with almost $3 billion in cash. We believe that with the new products scheduled for launch in the next few months and realigning our cost structure, RIM will see strong profit growth in the latter part of fiscal 2012. 

As a result of its latest misfortunes, RIM also announced that it will "streamline operations", which means that a "headcount reduction" will take place. RIM didn't go into specifics on how many workers will lose their jobs, but the company has a current workforce of about 17,500 employees.



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RE: Marketing speak
By melgross on 6/17/2011 8:27:44 AM , Rating: 2
They dropped the ball with their tablet as well. I don't know what you find so compelling about it, but for the half hour I used it I was far from impressed. It is built well, as it should be for a tablet with half the screen size but the same price as the iPad. But QNX needs a LOT of work. And there is no real software available, and without that, it's pretty much useless, and will not compete.

So far, they're behind on delivering mail; missed that deadline, and in the call said it would arrive late this summer. Not good.

So who is this for right now, other than BB owners? No one. I hope RIM does get it's act together, as competition is good, but it doesn't look as though these two guys know what's happening. They refused to take any blame for RIMs' poor performance, and kept on praising each other. Embarrassing!


"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference

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