RIM reports Q1 FY09 revenues, stock tanks after hours
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Blackberry maker Research In Motion ( RIM ) reported earnings for first quarter of FY09. Revenue for the quarter was $2.24 billion, up 107% from $1.08 billion in the same quarter of last year.
During the quarter, RIM shipped approximately 5.4 million devices. Approximately 2.3 million net new BlackBerry® subscriber accounts were added in the quarter. At the end of the quarter, the total BlackBerry subscriber account base was over 16 million.
The revenue breakdown for the quarter was as follows
- 82% revenue from device sales
- 13% from sale of services
- 3% from sale of software
- 2% from other businesses
Net income for the quarter was $482.5 million, or $0.84 per share diluted, compared with net income of $412.5 million, or $0.72 per share diluted, in the prior quarter and net income of $223.2 million, or $0.39 per share diluted, in the same quarter last year.
The company issued forecast for the second quarter of fiscal 2009 and expects to be in the range of $2.55-$2.65 billion. Net subscriber account additions in the second quarter are expected to be approximately 2.6 million. Earnings per share for the second quarter are expected to be in the range of $0.84-$0.89 per share diluted.
RIM is facing increasing competition in the enterprise market from Apple’s iPhone as well the Palm’s Centro and has yet to announce it’s answer to the Apple iPhone. Meanwhile, Apple is forging ahead with it software plans on the iPhone to attract enterprise customers, a market dominated by Blackberry’s.
The quarter results fell short of analyst expectations and shares were down 11% in after hours trading.
SOURCE: RIM
