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As we reported earlier in the week, things are looking rosy over at Research In Motion headquarters. The BlackBerry maker reported a significantly higher fourth-quarter profit on Wednesday.
If there is a dark cloud in Waterloo this morning, it is over news that the informal inquiry by the U.S. Securities and Exchange Commission into RIM stock-option grants, which led to an earning restatement earlier in the year, has been upgraded to a formal investigation.
Yesterday, RIM announced earnings of $187.9 million, or 99 cents a share, in the three months ended March 3. That was way up from the same period last year when the company earned a profit of just $18.4 million, or 10 cents a share.
RIM’s announcement was made after the markets closed and the stock was at $146 on the NASDAQ and $166 on the TSE at closing.
The company’s solid results should keep investors and stockholders happy. The investigation may have a negative effect at some point, but currently it is not bringing the company down. Analysts generally concluded that the $250 million restatement was disruptive but would not affect the general performance of the company.
RIM is entering 2008 with even larger projected earnings."We are entering fiscal 2008 with very healthy subscriber growth momentum, a strong slate of products and services, exceptional partnerships and a growing market leadership position," Rim Co-CEO Jim Balsillie said in a statement Wednesday.
The company claimed it had added more than a million BlackBerry subscribers in the quarter and now has 8 million potential CrackBerry addicts worldwide.
In the next quarter, RIM expects revenue of $1.025 billion to $1.075 billion and the addition of between 1.125 million and 1.15 million subscribers.