RIM Unleashes First Quarter Financial Results

RIM has reported $643 million in earnings (that’s $1.12 per share), for the 1st Quarter that ended May 30th. A year ago, that result was 482.5 million (that’s $.84 a share). Excluding a $175.1 million tax credit and other items such as that, RIM earned $564.4 million (that’s $.98 a share). Revenue was $3.42 billion, that’s a whole 53% from the same quarter last year.

This was pretty much in line with what was expected. About 81% of the revenue was attained from the sales of BlackBerry devices, 13% from service, 2% from software, 4% from various businesses. Gross margins were at a strong 43.6%, up from 40% last quarter.

RIM stated it had shipped 7.8 million BlackBerry smartphones and added 3.8 million BlackBerry subscribers which is now at almost 29 million. According to the IDC, RIM is estimated to hold 55% share of the U.S. Smartphone market. So with the great news on hand, why did shares of RIMM fall 5% in after hours trading time? Inflated expectations and the fact that RIM met expectations, but some investors want to see them exceed expectations. Investors are worried about Apple’s newer iPhone, Palm’s Pre, and also the addition of Google’s new Android smartphone (Goog), Samsung, and even Nokia that are now competing to try and get in on the competition. RIM says it will sell between 8.1 and 8.7 BlackBerry devices in the second quarter. With the Flip Pearl (”no more butt-dialing”) on the scene, the Storm 2 and the Tour (hopefully to be arriving soon to a cellular provider near you) on the horizon, RIM may just exceed the goal they’ve set for the next quarter.

[via: Daily Financial]

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