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Press Release: Research In Motion Reports Year-End and Fourth Quarter Results for Fiscal 2012

By Adam Zeis on 29 Mar 2012 04:45 pm EDT
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RIM

The 4th quarter results are in! Read the full press release below, and stay tuned for our live blog of the earnings call coming up in just a bit. You can tune in to the earnings call live here.

Press Release

Research In Motion Reports Year-End and Fourth Quarter Results for Fiscal 2012

WATERLOO, ONTARIO--(Marketwire - March 29, 2012) - Research In Motion Limited (RIM) (NASDAQ:RIMM)(TSX:RIM), a world leader in the mobile communications market, today reported fourth quarter results for the three months and fiscal year ended March 3, 2012 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Highlights:

  • $2.1 billion in cash, cash equivalents, short-term and long-term investments at the end of the quarter, which increased by approximately $610 million in the quarter
  • Cash flow from operations of approximately $1.1 billion, up from approximately $900 million in Q3
  • Revenue of $4.2 billion, down 19% from the third quarter
  • GAAP net loss in Q4 of $125 million or $0.24 per share diluted; adjusted net income of $418 million or $0.80 per share diluted
  • BlackBerry smartphone shipments of 11.1 million in Q4, down 21% from Q3
  • RIM to discontinue providing specific quantitative guidance
  • RIM provides update on organizational changes

Q4 Results:

Revenue for the fourth quarter of fiscal 2012 was $4.2 billion, down 19% from $5.2 billion in the previous quarter and down 25% from $5.6 billion in the same quarter of fiscal 2011. The revenue breakdown for the quarter was approximately 68% for hardware, 27% for service and 5% for software and other revenue. During the quarter, RIM shipped approximately 11.1 million BlackBerry smartphones and over 500,000 BlackBerry PlayBook tablets.

"I have assessed many aspects of RIM's business during my first 10 weeks as CEO. I have confirmed that the Company has substantial strengths that can be further leveraged to improve our financial performance, including RIM's global network infrastructure, a strong enterprise offering and a large and growing base of more than 77 million subscribers. I'm very excited about the prospects for the BlackBerry 10 platform, which is on track for the latter part of calendar 2012. Notwithstanding these strengths and opportunities, the business challenges we face over the next several quarters are significant and I am taking the necessary steps to address them," said Thorsten Heins, President & CEO of Research In Motion. "In addition to delivering the BlackBerry 10 platform and refocusing resources on RIM's key opportunities, such as BlackBerry Mobile Fusion and new integrated service offerings, we will also drive greater operational performance through a variety of initiatives including increased management accountability and process discipline. In parallel, we are undertaking a comprehensive review of strategic opportunities including partnerships and joint ventures, licensing, and other ways to leverage RIM's assets and maximize value for our stakeholders."

The Company's GAAP net loss for the fourth quarter of fiscal 2012 was $125 million, or $0.24 per share diluted, compared with GAAP net income of $265 million, or $0.51 per share diluted, in the prior quarter and GAAP net income of $934 million, or $1.78 per share diluted, in the same quarter of fiscal 2011. Adjusted net income for the fourth quarter was $418 million, or $0.80 per share diluted. Adjusted net income and adjusted diluted earnings per share for the fourth quarter exclude the impact of pre-tax charges of $355 million which are predominantly non-cash ($346 million after tax) for the impairment of goodwill and $267 million ($197 million after-tax) for an inventory provision taken primarily on certain BlackBerry7 products. These charges and their related impacts on GAAP net income and diluted earnings per share are summarized in the tables below.

Reconciliation of GAAP gross margin, gross margin percentage, net income and diluted EPS to adjusted gross margin, gross margin percentage, net income and diluted EPS:

(United States dollars, in millions except per share data)
For the quarter ended March 3, 2012
Gross Margin(1) (before taxes) Gross Margin %(1)(before taxes) Net Income or (Loss) Diluted EPS
As reported $ 1,401 33.4 % $ (125 ) (0.24 )

Adjustments:
Impairment of Goodwill(2) - - 346 0.66
Inventory Provision(3) 267 6.4 % 197 0.38

Adjusted $ 1,668 39.8 % $ 418 $ 0.80
Note: Adjusted gross margin, adjusted net income and adjusted diluted earnings per share do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of adjusted gross margin, adjusted gross margin percentage, adjusted net income and adjusted diluted earnings per share enables the Company and its shareholders to better assess RIM's operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of RIM's GAAP results.
(1) During the fourth quarter of fiscal 2012, the Company reported GAAP gross margin of $1.4 billion or 33.4% of revenue. Excluding the impact of charges primarily related to inventory valuation of certain BlackBerry 7 products, the adjusted gross margin was $1.7 billion, or 39.8% of revenue.
(2) Subsequent to the fourth quarter of fiscal 2012, the Company performed a goodwill impairment test and based on the results of that test, the Company recorded a non-cash pre-tax goodwill impairment charge of $355 million, $346 million after tax.
(3) During the fourth quarter of fiscal 2012, the Company recorded a pre-tax provision of approximately $267 million, $197 million after tax, which was mostly non-cash, primarily related to its inventory valuation of certain BlackBerry 7 products.

The total of cash, cash equivalents, short-term and long-term investments was $2.1 billion as of March 3, 2012, compared to $1.5 billion at the end of the previous quarter, an increase of approximately $610 million from the prior quarter. Cash flow from operations in Q4 was approximately $1.1 billion, up from $900 million in Q3. Uses of cash included intangible asset additions of approximately $260 million and capital expenditures of approximately $190 million.

Fiscal 2012 Results

Revenue for the fiscal year ended March 3, 2012 was $18.4 billion, down 7% from $19.9 billion in fiscal 2011. The Company's GAAP net income for fiscal 2012 was $1.2 billion, or $2.22 per share diluted, compared with GAAP net income of $3.4 billion, or $6.34 per share diluted in fiscal 2011. Adjusted net income for fiscal 2012 was $2.2 billion, or $4.20 per share diluted. Adjusted net income and adjusted diluted earnings per share for fiscal 2012 exclude the adjustments described above as well as the impact of pre-tax charges of $54 million ($40 million after tax) to revenue related to the service interruption experienced in the third quarter, $485 million ($356 million after tax) for the PlayBook inventory provision taken in the third quarter and $125 million ($96 million after tax) for the Company's cost optimization program that was implemented in the second quarter of fiscal 2012. These charges and their related impacts on GAAP net income and diluted earnings per share are summarized in the tables below.

Reconciliation of GAAP revenue, gross margin, gross margin percentage, net income and diluted EPS to adjusted revenue, gross margin, gross margin percentage, net income, and diluted EPS:

(United States dollars, in millions except per share data)
For the year ended March 3, 2012
Revenue (before taxes) Gross Margin(1) (before taxes) Gross Margin%(1) (before taxes) Net Income Diluted EPS
As reported $ 18,435 $ 6,579 35.7 % $ 1,164 $ 2.22

Adjustments:
PlayBook Inventory Provision(2) - 485 2.6 % 356 0.68
Cost Optimization Program(3) - 14 - 96 0.18
Q3 Service Interruption(4) 54 54 0.3 % 40 0.08
Impairment of Goodwill(5) - - - 346 0.66
Inventory Provision(6) 19 267 1.4 % 197 0.38

Adjusted $ 18,508 $ 7,399 40.0 % $ 2,199 $ 4.20
Note: Adjusted revenue, adjusted gross margin, adjusted gross margin percentage, adjusted net income and adjusted diluted earnings per share do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of adjusted revenue, adjusted gross margin, adjusted gross margin percentage, adjusted net income and adjusted diluted earnings per share enables the Company and its shareholders to better assess RIM's operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of RIM's GAAP results.
(1) During fiscal 2012, the Company reported GAAP gross margin of $6.6 billion, or 35.7% of revenue. Excluding the impact of charges related to the PlayBook Inventory Provision, the Cost Optimization Program, the Q3 Service Interruption and the Inventory Provision, the adjusted gross margin was $7.4 billion, or 40.0% of revenue.
(2) During fiscal 2012, the Company recorded a pre-tax provision of approximately $485 million, $356 million after tax, related to its inventory valuation of BlackBerry PlayBook tablets. The charge was predominantly non-cash.
(3) Cost of sales, research and development, and selling, marketing and administration expenses in fiscal 2012 included approximately $11 million, $18 million, and $67 million, respectively, in after-tax charges related to the cost optimization program to streamline operations across the Company.
(4) During fiscal 2012, the Company experienced a service interruption which resulted in the loss of service revenue and the payment of service credits totally approximately $54 million, approximately $40 million after tax, related to the interruption in the availability of the Company's network.
(5) Subsequent to fiscal 2012, the Company performed a goodwill impairment test and based on the results of that test, the Company recorded a non-cash pre-tax goodwill impairment charge of approximately $355 million, approximately $346 after tax.
(6) In the fourth quarter of fiscal 2012, the Company recorded a pre-tax provision of approximately $267 million, $197 million after tax, which was mostly non-cash, primarily related to its inventory valuation of certain BlackBerry 7 products.

Change to Guidance Practices and Outlook:

The company expects continued pressure on revenue and earnings throughout fiscal 2013. Due to a desire to focus on long term value creation and the current business environment, RIM will no longer provide specific quantitative guidance. Some of the factors contributing to this include, ongoing weakness in the Company's U.S. smartphone business, an increased focus on selling BlackBerry 7 smartphones to grow the subscriber base in advance of the BlackBerry 10 launch, increasing competitive pressure in the Company's international markets and the introduction of certain new lower tier service pricing initiatives and a higher mix of sales coming from entry level products.

Organizational and Board of Directors Update:

Jim Balsillie, former Co-CEO of the Company, has resigned as a Director on the Company's Board.

"As I complete my retirement from RIM, I'm grateful for this remarkable experience and for the opportunity to have worked with outstanding professionals who helped turn a Canadian idea into a global success," said Jim Balsillie.

"On behalf of the Board and everyone at RIM, I would like to thank Jim for his 20 years of service to RIM," said Barb Stymiest, Chair of RIM's Board of Directors. "His energy, drive and enthusiasm helped build one of the most successful technology companies of our time."

In addition, David Yach will be retiring from his role as CTO, Software after 13 years with the Company and after 4 years with the company and following an open dialogue on the future of global operations, Jim Rowan, COO, Global Operations, has decided to pursue other interests. The Company is currently undertaking a search to hire a single COO with responsibilities to run the Company's operations.

"RIM would like to thank David Yach and Jim Rowan for their years of service and many contributions to RIM," said Thorsten Heins, President and CEO. "We wish them well in their future pursuits."

Reader comments

Press Release: Research In Motion Reports Year-End and Fourth Quarter Results for Fiscal 2012

92 Comments

What's to sum up; the fact that RIM's trading has been halted on the Nasdaq and T-S-X pretty much says it all.

Comments like this are what prove you should not learn about the stock market from people who don't understand the stock market.

 

A trading halt like this is due to pending news.  That's all there is to it.   

The question is, will they lift the halt for the opening of trade tomorrow? I assume this was to prevent after hours trading of the stock so that it didn't open with a monster drop tomorrow.

Oh please. Stocks are not halted for just any "ordinary" pending news. They are halted for a specific period of time - in the United States for 1 hour and in Canada for 2 - 3 hours - wherein the pending news is taken to be of such significance that a halt is justified in order to give investors and the markets time to digest the news in the hope of avoiding overeaction. In the case of RIM's update, the stock was halted because of the significant negative news that RIM has provided. My original comment stands if you understand the tone in which it was written in.

RIM is falling :( I Hope they can release BB10 quick and make it strong enough to boost the company back to it's heights

And the BB10 SHOULD NOT have any issues right out of the box like Bold 9900 with hardware quality control issues to software issues later even with official OS releases.

No, until BBX comes out the next couple of quarters will be similar.

What should be taken away from this is that Mr. Heins is willing to face reality and will be clearer when discussing the state of the company than previous management. That's a good thing.

But they lay it out that they will be taking hits as they try to divest themselves of the BB7 devices and restructure the company.

They had their chance, with the current situation, even if they put in their full effort and launch an amazing BB10 in mid-Q3, they will certainly not be able to turn around.

If they somehow managed to survive and launch several successful products then they may be able to very slowly get certain shares back.

Considering that Apple only launched iPhone 4s last year and the better android phones were mostly released in Eastern Asia and didn't get released in Europe and the States until very late in RIM's fiscal year, the figures are really saying that RIM IS losing even when its competitors have done very little...this is a very bad sign...and I am very tempted to say that whatever RIM is doing is too little and way too late...

You strike me as someone who holds Apple in higher regard than RIM, which given their relative business TODAY, one can hardly take issue with. What I can, and do take issue with, is your steadfast predictions that all hope is lost for RIM. If you've read Steve Jobs biography you'll know that more than once Apple was written off as a goner. Is Apple the ONLY company that can reinvent itself? How did Apple Become so good at what it does? Focus!! Which sounds awfully familiar to what Thor was talking about. And for the record I own an iPhone, a MacBook Air, two iMacs as well as a PlayBook and a BlackBerry so I am not a RIM fanboy. Does Thor have his work cut out for himself? Absolutely, but Apple's own history puts the lie to your belief that it's too late for RIM.

Short term growth opportunity: license BBM to use on iOS and Android and have people pay a $5/month fee to use the service.

Longer term: license BB10 (maybe just for tablets) to Samsung or other interested parties. PlayBook is awesome, but RIM should realize it needs to offer other choices of tablet hardware and don't have the resources to develop this new hardware (need to focus on the software for BB10 implementation).

Why would I use BBM though on Apple?

Only if my friends all have BlackBerry.

But guess what, if I can use BBM on iPhone, I might as well have an iPhone and not a BlackBerry.

So thats a $60 a year take rather than a $200 take for RIM.

Not something that's likely to happen.

BB10 licensing is a better proposition. And for Samsung etc, would get them away from the Android patent wars.

All my friends already use a cross-platform non SMS messaging app (whatsapp). It works on iOS and Android and is free or 99¢. Nobody on iOS or Android would pay for BBM. Too little too late.

" and a higher mix of sales coming from entry level products."

This is the killer. High end users have switched to iPhone and droids. What's left for bb? The bottom users still buying curve 8520's

and the bottom end is not sustainable, because android and iPhones will always have outdated handsets with lowered price...this means that in the higher end and middle of the spectrum, the market is obligopolised by android and iPhone, driving app development, communications (such as os based IM like iMessage), etc to the two platforms. The bottom end will move on to the two platforms' outdated handsets at some point since the inferior BB handsets has pretty much the same specs and less common user base...

It is simply impossible to sustain a minority share in the smartphone market; people expect communication to be compatible... once everyone find iMessage being the more compatible IM like BBM once was, any efforts will be futile...a couple thousand of hardcore BB fans will not even be enough to keep a plant running...

Not surprising given the pent up demand for new BB devices in qtr 3.

They've taken a number of charges during the quarter. No doubt to give themselves a head start for the next fiscal year by laying the issues at the door of earlier management.

+1. Thor is laying the ground work to be able to start from (almost) scratch. RIM definitely needs to show that change is upon us and this is the only right first step to take. Owning the current issues, while at the same time putting them at the feet of previous management to put him in a position to bring confidence to his regime and their work to speak for itself. The math is pretty bad but its all just done to set up the future so that any improvements and progress moving forward are not hampered by having to incorporate the mess that was there before. Sometimes you have to take a step backwards to be able to get a running start and carry momentum.

A toast to the future...progress and development!

He did the right thing. He didn't BS around with the bad news like Jim and Mike. He owned it, even though it was an inherited mess, and he took decisive action to where he saw ineffective leadership taking place. He set the market expectations that it's not good and might get bad. However, in doing all of that, if he's successful and it gets better it will be viewed as a significant positive message from RIM to the market.

I've long suspected that operations was a complet mess. Now if could do something about that marketing department.

It is not all that bad. Came out truthfully and made a lot of shake ups. The things he said today were much different than when he first became ceo. A lot of positives to take out and good potential but I dont like the idea of opening up to the selling of the company.

PALM rarely made money, this is RIM's first loss in a decade. They could vanish tomorrow and still not be PALM.

Except Samsung would probably not be interested in it.

Samsung's S Pen phablets line are doing great...it would be very odd for them to suddenly start developing another line with functionalities that their current lines already have.

I think a huge reason for Samsung's development of its own os was due to their nationalist ideology in hoping of having a Korean os rather than hoping to abandon android...and there's really very little reason for a company whose os has just failed to purchase or request license of another os that is not doing well...

At this stage I genuinely doubt Samsung know anything more about BB10 than any of us do...it would be quite odd for them to even consider about making a huge investment at this point based on complete speculations of an os

As most of us "sane people" predicted, RIM is bleeding badly. It's pretty clear that results will continue to be dismal for at least 2 more quarters (or until BB10 at the earliest).

Who knows whay the effect will be on the stock - $12 is quite reasonable I would think.

Could a takeover be in the wind? What are the patents worth to SAMSUNG?

They need to get BB10 launches as soon as possible. I actually processed an upgrade of my 9630 to an HTC Rezound (I was under phone fever or something). Fortunately, I came to my senses and refused the shipment. Seriously, I want a new Berry but not a OS7 when I know BB10 is coming and especially not for two bills.

There...

just slightly more than a week ago, several people here called everyone with a reasonable sense of rationality trolls and claimed that RIM is doing well and growing and insisted that we will be "surprised"

I would really like to see those people's comment now....it's certainly not a pleasant surprise...

your strategy of giving false hopes and pretending problems never happened certainly worked in bringing down RIM...now is the time for RIM to realize what deep trouble they are in and actually give in their full effort and do something in a timely manner

Yeah . Same here . They know what's wrong , they know how to fix it , and it's been done before . Just like they said , it won't happen overnight , and I'm not going anywhere !

Honestly, I don't see what all the fuss is about. did anyone expect anything different and is any of this remotely relevant for consumers? Nope not one iota. For consumers the important news is what will BB10 be like. That's it.

Now if you think RIM is going to be sold and the new owners will halt BB10 it might matter, but if anyone is going to purchase RIM (which they won't before BB10) and put a halt to BB10 I could see this being relevant, but we know that won't happen. So this is irrelevant.

All earnings information is backward, not forward, lookingso not relevant. It might be if RIM had only BB7 devices planned and nothing new, but again that's not the case.

Even saying they have 77 million users is irrelevant because those users are not on BB10.

RIM is in much the same position as Nokia, Nokia's solution was to adopt WP, RIM has created their own. We don't know how either will work out. We do know that WP look and performs well so there is a little more info, but again anything that was said today doesn't matter.

It does matter for consumers well BB fans anyway...

A company in deep trouble will drive away investors meaning the company will have decreasing resources to work with for developing their products...

A decrease in their sales of handsets means the capabilities of the os-based IM is decreased...less BBM users, less useful BBM is, more iPhone users, more useful iMessage is

If the higher-end handsets are not selling, that means carriers would be reluctant to have these handsets in the future or at least would spend much less resource marketing them, which means consumers wouldn't even get to see them

Less handsets means app developers would be less motivated to develop for the os, meaning less apps, thus a less functional os

And no BB10 is not going to turn around the situation, iPhone didn't became widespread and popular in its first iteration, neither did BB only just started catching up by developing BB10...the catching up happened way before that...the data are indicative of their progress...and this is clearly showing that they are not doing well...

There is no miracle product; RIM is not inventing something new; RIM is fighting for the smartphone market and the figures are telling us that they are losing and from the figures we can extrapolate that this trend will sustain for quite a bit of time...BB10 is not going to suddenly change everything...

No irrelvant.

RIM has all the money they need to bring out BB10, investors will decide then. Driving them away now doesn't matter one iota.

Everything going on now is BB7.

Also, don't make the mistake that a "turn-around" means BB10 beats iPhone. We all know that won't happen. Apple has been going great guns on their laptops and what market share do they have????? 5% LOL

I can tell you this, if RIM posts solid quarter on quarter increases in BB10 sales the stock will act like a rocket even if total BB users fall because it's all about the future, and BB7 is the past.

On App dvelopers I agree that's a big issue, but again todays' news is irrelevant in that regard since all hard data deals with BB7 which doesn't help BB10 development at all.

well...only if you lived in a world where all investors are risky gamblers who don't look at track record and have no power to withdraw their investment now

and what about BB7, do you think BB7 has nothing to do with RIM? BB7 is a part of RIM and will continue to be a part of RIM, BB7 handsets will continue to be RIM's products that they sell well after BB10's launch...There will not be a line dividing BB7-era and BB10-era, it's a gradual process, and poor BB7 will directly hurt BB10.

The carrier will certainly play a very important part

And no, if BB's user base is falling despite BB10's sales causing an increase in sales, the stock will likely fall, since it certainly doesn't indicate that RIM is profitable.

and why would today's news be irrelevant; do app developers travel back in time to release BB10 apps before BB10 is launched? if you drove away the carriers and developers, then your initial sales will suffer because there will be little carrier promotions and little functions to your os, and when your initial sales suffer, they will be further discouraged...

By your logic, companies can sell things only in one quarter per year and do extremely well in that quarter and expect to do well...

no, i'm saying BB10 is a huge change for RIM, and it's the future that counts.

You are saying that future doens't matter let's focus on the past. The nad news we see today was set in lace years ago when RIM sat on its ass while other passed it by.

If you don't think future sales matter you will have no idea how to justify Apple's stock price. That price has little todo with todays sales (they don't justify the price) it has to do with expectations of future sales, not Apple's past sales.

Fine is you want to say BB10 doesn't matter you know BB10 will fail because BB7 isn't good enough then go ahead but your thinking is mor wishful thinking that solid thinking. The turth is you don't know and neither do I.

nobody ever said future doesn't matter, I made it very clear that future is affected by past records...I said BB10 will be negatively affected by this report. Certainly releasing a BB10 that's good and one that's a complete piece of trash would have wildly different result, but thinking that a good BB10 would save RIM is not at all reasonable, it simply wouldn't. A good BB10 may mildly relief the current situation RIM is in and make it less bad and a bad BB10 will certainly drive away whatever remaining investors left during release but given the current situation, thinking BB10 alone could turn the situation around and make things good is just impossible. It would take products after products to reestablish, and even if RIM put in full effort, there is still a great chance that RIM will not make it because it's in such a bad situation.

Thinking that a company can ignore its current position and disregard its funding, carriers and developers and something magical would happen the moment something new is released and apps would suddenly appear without people writing them and phones suddenly selling without carriers' supports and funding coming out from nowhere is just not a very reasonable assumption.

and you have a very grave misunderstanding of Apple's stock price...the anticipation of future sales comes from extrapolation of today's and past sales...investors don't make up a number concerning estimated future growth with no basis, and the basis is Apple's past track record...

You seem knowledgeable on a lot of things, but as someone who has worked for over twenty years in the investment business your last paragraph shows a distinct lack of knowledge about what drives a companies stock price up or down.

You purchase the stock of any company for one thing and one thing only..... It's FUTURE earnings. When the market as a whole thinks that those earnings have lots of room to grow the stock price moves up. In the case of RIM, market sentiment us definitely bearish at the moment.

But don't,the think for a moment that positive earnings growth won't change that, because it will. Especially given the fact that RIM is trading below break up value right now.

Am I saying you should run out and buy RIM stock just because it's down? Not at all. But you should realize that if Apple ever sees a slowdown in its earnings, the stock will decline as a result. It doesn't have immunity from that and Stevens famous reality distortion field will not work when it comes to the capital markets.

You are wasting your time responding. He ALWAYS thinks RIM is going to be fine. He and a lot of the folks here have been echoing that sentiment for years, and every year RIM loses more grounds while they wait for the "next" thing.

I love RIM. I just wish they listened to their critics sooner. The fanboy bunker approach does not work in real life. Clearly.

yes...I have been saying it for a very long time...but certain people on here love calling whoever have thoughts trolls and shutting everyone up until it looks like RIM is doing fine...

You would either have to extremely optimistic and senseless or purely sarcastic to make it sound like BB10 could be RIM's golden egg...no, RIM is dying and this is their chance for survival...not just any chance...

I don't even know if it's their last chance anymore...from the look of it, since other handset makers are clearly making a lot of progress and did an extremely good job at differentiating their own products, it looks like the last chance was the early 2012 release date for BB10.

No matter how the secrets are kept, we always get leaks about next gen features, we knew about SIRI months before iPhone 4S' announcement, we knew about a 5" Samsung tablet with stylus way before Note's announcement and we are getting absolutely nothing from RIM except rumours of not being able to integrate BIS and BES into QNX...even without rumours, not getting any leaks at all is extremely worrying, it's almost like saying there's nothing special with the upcoming product.

The only information given by RIM was the new chip for LTE to save battery...but in their pursuit of this chip...the issue is already resolved...Motorola released a phone that resolved the issue a month ago. This new technology that RIM is pursuing took so long that it's not useful anymore and it's going to be half a year behind.

When your future speculations given the current information is not exactly good and your past track records are going downhill...no matter how optimistic you are, if you are a sane person, the situation cannot be good.

People call you a troll because you talk sh*t, and try to pass it off as knowledge. Basically what you are saying is I don't knoe anything now so I know it's bad. I'd be surprised if you hold a degree in anything thinking that way. You sure as heck would not pass any business class I teach.

If you would say, I don't know anything and I think that's bad, people wouldn't call you a troll, because basically you are admitting you know f-all. And that would be a 100% accurate statement.

And BTW I'm saying it comes down to BB10 for consumers because I see it in myself. If BB10 can't compete I'm switching. I'm no blind RIM lover and I'm not saying BB10 will make everything good I'm saying BB10 is what matters for RIM's future. You are saying it doesn't matter because you already know it isn't good. that's a troll comment because you don't KNOW.

why is it that you switch occupation in every post...do you ever hold a job for more than two days?

and if you cared to read, I didn't say BB10 is bad, I said BB10 is not going to a ticket to winning the market, it's a ticket to continue surviving in the market, not winning.

RIM isn't raising additional capital so not sure where your logic of "a company in deep trouble will drive away investors meaning the company will have decreasing resources to work with" relates.

RIM makes more money than it spends right now so it has cash as a resource to use to develop products. Again, not saying that it doesn't have challenges, but a company that is profitable and not highly leveraged could hardly be described as "deeply troubled". They lost their way. I could name you ten companies that did that (Apple under Mr. Amelio for for one) that have found their way again.

Lighten up a bit on the relentless world view that RIM is done.

Hmm... for Q4'2011 which includes Christmas sales, a -19% revenue, -21% sales, and now a swing to a net loss from Q4'2011 operations...
[Edited: Just got the sales decrease from Globe & Mail].

Now we start to talk about cash burn rate, etc.

Remember, this is an exploding smartphone market, and Blackberry has a *drecrease* in both revenue and sales!
Significantly, RIM is ceding some of its high-end smartphone marketshare to its competitors (iPh*ne and Andr*id)...

So what happens when the smartphone market matures in 2-3 years time? That's when everyone got their smartphone already, and have just finished upgrading to their future smartphones for next generation in 2-3 years time...

Let's hope (pray) that RIM gets it right with end-year BlackBerry 10 smartphones, with good developer App support... (and please do not repeat that PlayBook v1.0 fiasco with RIM's core business which is the smartphones!).

Best of luck, RIM !

I've got four lines on my account. Two lines eligible to upgrade now, another in June and the last in December. It looks like by the time RIM brings BB10 to market (if ever) I'll be in good shape.

if we all start buying their shares, they will automatically go up in value, its how the market wrks. Our buying stocks make it rally, when it starts t rally other bigger investors become interested and excited about it. its a win win situation for all, we invest, we make money, RiM makes money and then we get t enjoy new products from our favorite business.

yes...bigger investors who don't do research...

I'm sure the "bigger investors" would love to sell you their stocks right now...

Hmm not sure where this comes from, for me again it depends on BB10 so we just don't know. If BB10 is as big a flop as Playbook then we can say last one out turn off the lights. I do see a sure buying opportunity yet.

seriously, BB's are overpriced, they need to market it to a leaner crowd. iphone's are a social gimmicky thing, they are primarily targeted to teens with disposable income. RIM should be looking at their model and seeing what they can do similar, the best way to attain success is to emulate others success.

The PB was priced right in November but should have been priced at that point right from launch, being so high priced at launch kinda dinged them and put consumers off ( even with the lack of features). The $200 mark is the sweet spot for tablets and it hit big for RIM, they saw sales increase immensely. But now they should focus on lowering the price of their handsets so that more people can actually buy them. I don't have $600 to spend on a Phone, heck 20 years ago I could buy a used car in decent condition for that, now that is rent for a month. I hope they do better this quarter and forward through 2013.

and so they suffer...come to East Asia and buy any BB and you get a PB for free...and you can always sell your BB for the same price you bought it as long as you haven't used/abused it because the price is so low already.

So yeah free PB for anyone in Eastern Asia basically...well, except Japan where you have to be citizen to buy a phone...

It doesn't look too promising, but it was to be expected. I also expected the 2 quarters before bb10 to be the worst. Its obvious, everyone is waiting for bb10 now. BB7 was just to generate income. I think we all realize the massive potential with qnx.. Tat, html5 and just SO much goodness that will be incorporated into bb10. They just have to deliver. No, it won't be easy, but why is everyone actually expecting them to do great? LIke they practically let us all know their future plans. The media just won't quit whining and thats also hurting them. They spend so much energy on RIM but the thing is that RIM isnt promising anything until bb10. The future starts now. Like Thorsten said, they have to start reviewing their assets to generate more income, because, as predicted, bb7 sales would stop generating enough cashflow. RIM has enough cash to hold on till bb10, they are planning for the future of that release.

Many get very discouraged by the earnings call. Its not the best, thats for sure, but i think its much more promising in the way that their future is not just 'another' operating system.. Its a god damn beast of an operating system that has so much going forward for it and so much potential, and so much to build upon for the future. Thats how we should see RIM. They have it all, but will they deliver? Will bb10 ever reach its incredible full potential? We'll find out.

They get discouraged because they invest real emotions into RIM. Don't treat your cell phone manufacturer like your wife. Treat it like a prostitute.

People are forgetting that RIM wrote off half a billion dollars from the Playbook, something to consider from the profit side of the reports

+1 Alot of people seems to be weighing the overall bottom line without looking at how it got there. They took a bunch of hits right on the chin this time around, but it was done in an effort to get them out of the way in order to showcase future results on their own merits. With BB10 coming and the perception of RIM's future squarely dependent on it's success, it only makes sense to let it shine or drown on its own. If they didn't take these hits now and waited for a more "successful" quarter, it would completely dilute that success and its perception.

Apple was on the brink of bankruptcy at one point and brought in a very smart person who took led the company to where it is today. RIM is in the same position now. I have a BB Tour and have been waiting, waiting and waiting for products to get RIM back into the market. I love the form factor of my Tour and would like to keep buying similar products. Seems like no other company can replicate the 9000 series form factor or else I would be owning one right now. Love RIM and keep hoping that they will be around to let me buy their products. People who own stock don't want to see their investments go up in smoke. Too early to tell with a new CEO in position for just a few weeks to turn a company around in such little time. Hard for someone on the inside to see the problems since that's how he has been working since he first started. Steve Jobs was brought back in when the company was a breath away of becoming just a mention in the history books and with some good planning and business decisions has them at the head of the pack in company valuation. RIM got caught sleeping and that's dangerous. The one place a company does not want to be in is when your at the top thinking you can not be pushed off. Apple keeps that in mind. A company has to have the mindset that they can be passed by. Once they have that kind of culture they can't be beat. RIM has a chance of being competitive and turn a profit. Design great products, tell the finance guys to figure out how to pay for it. Keep the features that made RIM great and add functionality for consumers that will make them want to buy their products.
Just because your at the top doesn't necessarily mean your smarter than the rest. That just means others want to prove you wrong. Apple knows this and thats why they stay their course. I just love RIM and will keep buying their products because they suit my needs. I hope they continue to do so......

Exactly. Motorola suffered from the same delusion of invincibility when they were on top. I'm not sure about Nokia... In any case, forget all the angst. All I care about is getting to upgrade my Tour to a BB10 device. As long as RIM can limp along that far...I'm good. I'm not going to cry about whether or not they will be around three years from now.

i still hope RIM can rise from all this. like apple it's the only other hardware/software maker out there and should continue to make the most out of their software...but they have to get developers locked in otherwise it'll be lights out.

that being said, some times rubbing it in just feels good (although cruel) so here goes....wow over 1 million playbooks out there now.....mmmm...what was that other tablet called?...the crap-pad was it....i'm sure with a name like that it wouldn't sell at all...

I think this is the reason why mike and jim decided to retired. Seemed like they know its coming. Mike and Jim made this big mess, now new guy has to clean it. RIM will not be PALM but. This is not good, i feel sad for this result.. I hope the best for RIM,. Im unsure how they would be able pull this. I really hope BB10 will be a killer, and I hope they would release it early.

As a loyal Canadian user, I hope this is not another Nortel in the making .
So if the reports here that RIM is going to concentrate on business users from now on, what's going to be happen to future BB devices for us crackberry addicts.

weirdly enough Nortel sold it's portfolio of 6000 patents for 4.5 billion (after Google low balled them at around 900 million with a stalking horse bid, it's CDMA and LTE sold assets for 650 million, it enterprise solutions business for 900 million, It's Metro Ethernet network for around 780 million, and it's GSM business for 150 million. It's next gen packet core assets were purchased for an undisclosed sum by Hitachi.
(this ignores sales of LG-Nortel (now LG-Ericson), Ottawa property etc)

In the end the value of the company was SIGNIFICANTLY higher than the stock price (a factor of 50x or more the final trading stock price)
Not even sure why they declared bankruptcy - at the time they had a 140million dollar interest payout to make on 2.3 billion in liquid cash they held....

mostly what brought down Nortel wasn't bad sales.. it was the bad accounting - Criminal Accounting and leadership who plundered her stock value.

While I do see some issues with RIM they still have a very Positive cash flow, they do still have many contracts and businesses - for every Halliburton they have a Aviva
for every hipster who owns an Iphone we have a lady Gaga photo using a blackberry :) http://www.blackberryblast.com/articles/2012/3/2012329-Lady-Gaga-uses-Bl...

To me it's not as if RIM is on the verge of bankruptcy or anything like that. Apple was, at one time but look at them now.

All it takes is a great product and bingo RIM would be world leader.

Cheers to all blackberry fans!

One positive thing about this earning is 2 BILLIONS IN CASH..that will get them going for at least 2 years..

BB10 will be a game changer for RIM! .. so they just need to ride out the storm for the next few months ... Playbook is awesome and getting better ... now is not the time to panic .. but smart money will invest now!

Oh RIM is still making money and debt free? Doesn't sound like a company that is going bankrupt anytime soon to me. Some of these posters need to look at Apple's, Microsoft's, and IBM's debt history, and see how far down a company can go before dying off.