RIM reveals 'challenging' financials and warns of layoffs ahead | Mobile Devices | Mobile Entertainment

RIM reveals 'challenging' financials and warns of layoffs ahead

RIM reveals 'challenging' financials and warns of layoffs ahead
Stuart Dredge

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Devices / Blackberry / June 17th 2011 at 12:51PM

Shipped 13.2m BlackBerry smartphones and 500k PlayBook tablets in its fiscal first quarter.

Research In Motion has reported its fiscal first quarter financials, with its revenues rising 16% year-on-year to $4.9 billion, as it shipped 13.2 million BlackBerry smartphones and 500,000 PlayBook tablets.

Positive growth? Not quite. The company's net income for the quarter was $695 million, down from $769 million a year ago. While those revenues grew, they fell short of analyst expectations for the quarter, triggering a new slump for RIM's share price.

"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," said co-CEO Jim Balsillie in a statement, which went on to strike a note of optimism.

"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."

The company announced plans for a 'cost optimisation program' that it admitted will include a headcount reduction. "This realignment will be focused on taking out redundancies and a reallocation of resources to allow us to focus on the areas that offer the highest growth opportunities and align with RIM strategic objectives, such as accelerating new product introductions," noted the company's financial press release.