Press Release: Research In Motion Reports Q1 Results for Fiscal 2013 - BlackBerry 10 phones delayed until Q1 2013

Thorstein Heins
By Adam Zeis on 28 Jun 2012 04:23 pm EDT
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Research In Motion has just reported their results for the first quarter of the 2013 fiscal year. We kind of knew what to expect after a business update was issued only a month ago, but it will be interesting to hear what RIM CEO Thorstein Heins has to say during the conference call. The CORE (cost optimization and resource efficiency) program still aims to save $1 billion by the end of fiscal 2013. RIM has faced a few challenges over the last few months but we're hoping that things pick up speed as we head toward the releae of BlackBerry 10. It's noted here that it's still "our number one priority" --however the updated release date for BB10 devices is now Q1 of 2013. 

You can check out our full coverage and follow along with our live podcast and webcast during the call. Be sure to stick around after to hear our thoughts on it all. We'll be following up shortly with a breakdown of just what it all means, so be sure to check back later. 

Press Release

Research In Motion Reports First Quarter Fiscal 2013 Results

WATERLOO, ONTARIO--(Marketwire - June 28, 2012) - Research In Motion Limited (RIM) (NASDAQ:RIMM)(TSX:RIM), a world leader in the mobile communications market, today reported first quarter results for the three months ended June 2, 2012 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Highlights:

  • Cash, cash equivalents, short-term and long-term investments increased to $2.2 billion at the end of the first quarter
  • Cash flow from operations was approximately $710 million in the first quarter
  • Revenue of $2.8 billion in Q1, down 33% from $4.2 billion in the prior quarter
  • GAAP net loss in Q1 of $518 million or $0.99 per share diluted; adjusted net loss of $192 million or $0.37 per share diluted
  • Shipments of BlackBerry smartphones were 7.8 million and shipments of BlackBerry PlayBook tablets were approximately 260,000
  • BlackBerry 10 smartphone launch now scheduled for Q1 of calendar 2013
  • Restructuring efforts underway that will include a workforce reduction of approximately 5,000 employees as part of RIM's efforts to realize over $1 billion in cost savings, based on RIM's Q4 FY2012 run rate
  • Launched World Tour BlackBerry Jam developer sessions in 23 countries resulting in strong adoption and support by application and developer partners for BlackBerry 10 platform
  • BlackBerry App World continues to grow with over 89,000 applications available
  • The overall BlackBerry subscriber base continued to grow, and the subscriber base grew in all regions except for North America
  • RIM names Steve Zipperstein, former General Counsel of Verizon Wireless, as Chief Legal Officer

Q1 Results

Revenue for the first quarter of fiscal 2013 was $2.8 billion, down 33% from $4.2 billion in the previous quarter and down 43% from $4.9 billion in the same quarter of fiscal 2012. The revenue breakdown for the quarter was approximately 59% for hardware, 36% for service and 5% for software and other revenue. During the quarter, RIM shipped 7.8 million BlackBerry smartphones and approximately 260,000 BlackBerry PlayBook tablets.

GAAP net loss for the quarter was $518 million, or $0.99 per share diluted, compared with a GAAP net loss of $125 million, or $0.24 per share diluted, in the prior quarter and GAAP net income of $695 million, or $1.33 per share diluted, in the same quarter last year.

Adjusted net loss for the first quarter was $192 million, or $0.37 per share diluted. Adjusted net loss and adjusted diluted loss per share exclude the impact of pre-tax charges of $335 million ($326 million on an after tax basis), which are predominantly non-cash related to the impairment of goodwill. This charge and its related impact on GAAP net loss and diluted loss per share are summarized in the table below.

"Our first quarter results reflect the market challenges I have outlined since my appointment as CEO at the end of January. I am not satisfied with these results and continue to work aggressively with all areas of the organization and the Board to implement meaningful changes to address the challenges, including a thoughtful realignment of resources and honing focus within the Company on areas that have the greatest opportunities," said Thorsten Heins, President and CEO. "Our top priority going forward is the successful launch of our first BlackBerry 10 device, which we now anticipate will occur in the first quarter of calendar 2013. In parallel with the roll out of BlackBerry 10, we are aggressively working with our advisors on our strategic review and are actively evaluating ways to better leverage our assets and build on our strengths, including our growing BlackBerry subscriber base of approximately 78 million, our large enterprise installed base, our unique network architecture and our industry leading security capabilities."

The total of cash, cash equivalents, short-term and long-term investments was $2.2 billion as of June 2, 2012, compared to $2.1 billion at the end of the previous quarter, an increase of approximately $100 million from the prior quarter. Cash flow from operations in Q1 was approximately $710 million. Uses of cash included intangible asset additions of approximately $285 million, capital expenditures of approximately $155 million and a business acquisition of approximately $100 million.

BlackBerry 10 Update

The successful launch of the BlackBerry 10 platform and the delivery of high quality, full-featured BlackBerry 10 smartphones remain the Company's number one priority. Over the past several weeks, RIM's software development teams have made major progress in the development of key features for the BlackBerry 10 platform; however, the integration of these features and the associated large volume of code into the platform has proven to be more time consuming than anticipated. As a result, the Company now expects to launch the first BlackBerry 10 smartphones in market in Q1 of calendar 2013.

"RIM's development teams are relentlessly focussed on ensuring the quality and reliability of the platform and I will not compromise the product by delivering it before it is ready. I am confident that the first BlackBerry 10 smartphones will provide a ground-breaking next generation smartphone user experience," said Thorsten Heins, President and CEO. "We are encouraged by the traction that the BlackBerry 10 platform is gaining with application developers and content partners following the successful BlackBerry Jam sessions that we have held around the world since the beginning of May. Similarly, the reception of the BlackBerry 10 platform by our key carrier partners has been very positive and they are looking forward to going to market with BlackBerry 10 smartphones in the first quarter of calendar 2013."

Organizational Update

RIM today also announced the appointment of Steve Zipperstein, former General Counsel of Verizon Wireless, as its Chief Legal Officer. Prior to joining Verizon, Mr. Zipperstein previously served as Deputy General Counsel for GTE Corporation and was employed with the United States Department of Justice as a federal prosecutor. Mr. Zipperstein joins Kristian Tear, Chief Operating Officer and Frank Boulben, Chief Marketing Officer as the latest additions to RIM's executive management team.

CORE Program

The Company announced its CORE (Cost Optimization and Resource Efficiency) program in March of this year. The program is focused on delivering operational savings through various initiatives, with financial objectives for the program targeted to drive at least $1 billion in savings by the end of fiscal 2013, based on RIM's Q4 FY2012 run rate. As a result of the shift in BlackBerry 10 launch timeline, the increasingly competitive environment, as well as the identification of additional cost saving and efficiency opportunities, the Company may increase the scope and magnitude of these programs, and considers these original estimates as minimum numbers it will be pursuing.

To date, the Company has started implementing a number of these initiatives including:

  • a reduction in the number of layers of management to drive better clarity, efficiency and accountability across the organization;
  • the continued streamlining of our supply chain, which includes the consolidation of our manufacturing footprint from 10 external manufacturing sites to three, and working closely with our suppliers and other partners to identify ways to drive further efficiency;
  • outsourcing key parts of the Company's Global Repair operations, including management of device level repairs;
  • targeted use of resources in our sales and marketing initiatives to more effectively leverage marketing windows and prioritize our marketing efforts and spend in regions that offer the highest opportunity and return;
  • further outsourcing of non-core functions as determined during the implementation of the CORE program; and
  • a global workforce reduction of approximately 5,000 employees, which is expected to be completed by the end of fiscal 2013.

The Company expects to incur restructuring related charges of approximately $350 million by the end of fiscal 2013, primarily associated with the global workforce reduction. Other charges and cash costs may occur during this process, and the Company intends to share more details throughout the year regarding its progress as programs are implemented or changes are completed.

Outlook

The Company expects the next several quarters to continue to be very challenging for its business based on the increasing competitive environment, lower handset volumes, potential financial and other impacts from the delay of BlackBerry 10, pressure to reduce RIM's monthly infrastructure access fees, and the Company's plans to continue to aggressively drive sales of BlackBerry 7 handheld devices. The Company expects to report an operating loss in the second quarter of fiscal 2013, as RIM continues to invest in marketing programs and continues to work through the transition to BlackBerry 10, as well as the Company's fixed costs being allocated over a lower volume of shipments. This outlook excludes the impact of charges related to the CORE Program.

Reader comments

Press Release: Research In Motion Reports Q1 Results for Fiscal 2013 - BlackBerry 10 phones delayed until Q1 2013

293 Comments

Oh man. That's gonna hurt RIM. Add to that revenue down 33% and the cutting of 5,000 jobs... tomorrow is gonna be a rough day for RIM stock.

Maybe we will be given a lovely surprise and they will release the Full touch screen and keyboard versions at the same time in March of Next year.

Or maybe it means that the Keyboard version is now being delayed until Q3/4 2013

Heh. I'd think with this delay, we may see both launch at the same time. Form what I understood, the hardware was pretty much baked, it was the BB10 OS that needed to be polished.

Dear Canadians,

We have to support RIM until the very END. RIM has become a symbol of pride to every Canadian. I am a Canadian and I don't care if other companys are better than us in technology. I just care that our jobs in Canada depend on this company. If RIM stays alive then we will prosper as a nation. It's not about being faithful to a brand anymore. It's about being loyal to the Canadian flag. Backberry has become our flag of pride. If Blackberry dies, a BIG part of Canada will die too. I will be ashamed to be a Canadian if Blackberry goes under. Everyone in the world will think Canada is a technological ill country. They will think that Canada is not prosperous and we will not benefit from trade with them. I will support Blackberry to the very end. Now is the time to show RIM our support. My current phone is a Blackberry, and my next phone is still going to be a Blackberry.

Loyal Canadian

I guess that means I have to buy Apple or Google products and "support the American flag". Either that OR we can buy from the company that we like and the products that we like and hope that the company can be successful internationally. I like the second option personally. It doesn't seem to reek of blind superficial patriotism and allows for the consumers to win. I will stick with RIM, even in their trouble times.

So Blackberry is 100% completely out of the game for 2012 and the early part of 2013? How can you remain positive?

From what I read, there were a great deal of people who were going to wait for the keyboard version of BB10 to hit anyway, so really there will be little to no difference for them.

Hopefully....

We need to be optimistic here Westex74!
It's still "go time", realignment, restructure, rebrand, whatever needs to be done! Be loyal man, STAY WITH IT!

Yeah,..but RIM is giving us any signs on what the hardware will be. Dual core? Quad Core? 14 hours of Talk-time? 3.x, 4.x or 5.x size screen! There is a laundry list of things I'd like to have in my next smartphone,...and RIM is falling extremely short at the moment. This news akin to heart failure!

Dear Canadians,

We have to support RIM until the very END. RIM has become a symbol of pride to every Canadian. I am a Canadian and I don't care if other companys are better than us in technology. I just care that our jobs in Canada depend on this company. If RIM stays alive then we will prosper as a nation. It's not about being faithful to a brand anymore. It's about being loyal to the Canadian flag. Backberry has become our flag of pride. If Blackberry dies, a BIG part of Canada will die too. I will be ashamed to be a Canadian if Blackberry goes under. Everyone in the world will think Canada is a technological ill country. They will think that Canada is not prosperous and we will not benefit from trade with them. I will support Blackberry to the very end. Now is the time to show RIM our support. My current phone is a Blackberry, and my next phone is still going to be a Blackberry.

Loyal Canadian

Dear Canadians,

We have to support RIM until the very END. RIM has become a symbol of pride to every Canadian. I am a Canadian and I don't care if other companys are better than us in technology. I just care that our jobs in Canada depend on this company. If RIM stays alive then we will prosper as a nation. It's not about being faithful to a brand anymore. It's about being loyal to the Canadian flag. Backberry has become our flag of pride. If Blackberry dies, a BIG part of Canada will die too. I will be ashamed to be a Canadian if Blackberry goes under. Everyone in the world will think Canada is a technological ill country. They will think that Canada is not prosperous and we will not benefit from trade with them. I will support Blackberry to the very end. Now is the time to show RIM our support. My current phone is a Blackberry, and my next phone is still going to be a Blackberry.

Loyal Canadian

Thorsten. You had better have your CMO on board ASAP and give him a $hitload of support (not to mention body armour).

Wait what!!! What the f***!! I was waiting for Blackberry 10! I was saving to buy this year. Android 4.1 Jelly Bean is coming and is looking bad ass. Now I might have to jump ship to android. This news really ruined my day!

Miss it? C'mon man, how much money have you lost clinging on to the hope of this company? It is over. Even if 10 is great, with a 2013 release, it is like launching a completely new company. Very difficult to do and compete with iOS and Android. Sorry I am a fan, but its past saying the writing is on the wall. RIM is almost trading at Palm prices before they disappeared. The ship has sunk. All due to horrible management decisions.

Dear Canadians,

We have to support RIM until the very END. RIM has become a symbol of pride to every Canadian. I am a Canadian and I don't care if other companys are better than us in technology. I just care that our jobs in Canada depend on this company. If RIM stays alive then we will prosper as a nation. It's not about being faithful to a brand anymore. It's about being loyal to the Canadian flag. Backberry has become our flag of pride. If Blackberry dies, a BIG part of Canada will die too. I will be ashamed to be a Canadian if Blackberry goes under. Everyone in the world will think Canada is a technological ill country. They will think that Canada is not prosperous and we will not benefit from trade with them. I will support Blackberry to the very end. Now is the time to show RIM our support. My current phone is a Blackberry, and my next phone is still going to be a Blackberry.

Loyal Canadian

Yikes! Not having a new phone before 2013 is really gonna hurt. Down 15% after hours so far.

Q1 2013. P.R.E.D.I.C.T.A.B.L.E

Watch Q1 2013 - they'll be another business update with the launch then to be Q2. And when Q2 rolls around...well my dear reader, by then they'll be gone. Poof.

Yes, given that they've been hammered so heavily and have so little options while just trying their best to stay afloat.

I'm not going to go into details but if they were not given the rough treatment they have I'm pretty sure they've have the capital, suppliers, momentum, to get it out sooner.

Not that any of the detractors will admit it, but they share some responsibility in this.

What are you an economist? You should be ashamed of yourself. If everyone in the world shared your attitude, nothing would get done!

Well I guess that dispels the rumor of BB10 coming out in September/October.

Watch for comments and media now spelling Armageddon/RIM's dead/it's over, blah blah blah.

I hate to admit it, but you are right. RIM just needs to be acquired or be chopped up. It can't compete anymore. Heck, it is already out of the race. Can you even buy the Playbook anymore?

Wow...There is absolutely no way anyone can try to spin something good out of this.

Sorry Kevin but RIM is in some serious shit now

Birdman is absolutely right, it's not hate it's reality. It's simple, if you set timeframes, keep them. They're unable to do so even when it's absolutely critical to do so.

I'm not making excuses or defending RIM because I could have stomached the sales #s..but the announcement of the BB10 delay kinda sucks. My guess though is your company has NEVER EVER missed a deadline, right?

You can guess whatever you like as much as you like. As for RIM they have constantly missed their own timeframes. The times are way too crucial for this ish again.

A deadline yes. I have been personally accountable for missing a deadline. Deadlines ... no. Never. Not with the sense of urgency and impact to the business that RIM must be experiencing? It's like they are not thinking about that.

It's almost another year.

They have the wrong people if they couldn't pull this off.

And I'm not saying that I'm fine with them missing their deadlines.. but, to put it in perspective, they aren't just building a calculator app... they are buidling a WHOLE NEW OS. Apple and Google are STILL revising and updating their OSes.. RIM is trying get done in 2-3 years what it has taken Apple to accomplish in 5-6..

+1000

BB_Vee, you're spot on with your comment, they don't ever meet dates they publicly state, and that is why they are getting no support from vendors and partners. Such VAR/ISV can't put resources towards any new Blackberry R&D because of all the delays.

Then maybe they should be super tight lipped about their products like Apple does... either way, people would bitch. Scenario #1 (current scenario) - they release tidbits of information and dates.. and people get all up in arms when things get delayed. Scenario #2 (Apple scenario) - they don't say a word about their coming devices until a week/month before they are ready... and people get all up in arms that RIM isn't sharing information. SMH

Keep on living in your wonderful world of candy and gum drops. The so called trolls live in reality and can smell another palm and nortal. By delaying till next year they pritty much commited sucide. By fall RIM stock will be below 5 dollers and a buyout will happen shortly after.

Dude...

1. it is Nortel

2. Nobody is living in a world of candy and gumdrops.. 99.9% of the users of this site realize reality.

3. Those "so called trolls" don't live in reality... they are losers with nothing better to do than rub your nose into situations like this.. yet they don't realize that karma's a bitch.. and they could be the one getting laid off because their employer has the same issues (assuming that they are employed).

It is not Nortel (yet at least). Nortel has a long list of problems including bookkeeping issues, conflicts of interest, hacking issues, and legal troubles. Right now RIM doesn't have those issues (yet, maybe an investigation will show they do have issues similar to that).

RIM is doing most things right, with the exception of these delays, but are having trouble competing. If anything, RIM underestimated Apple and Google and now are playing catchup with considerably less cash. Apple will be in the same boat, playing catchup, but because of it's diversity in products it will not be as cash strapped and will catchup faster than RIM can ever do right now.

At about $2 I thought Nokia were dirt cheap. When Kevin bought an Android I missed the writings on the wall, when BGR slated RIM i thought there were rabid, delusional fools, when RIM desperately showed the same "preview" around the world i was encouraged, when the render "leaks" started doing the rounds at N4BB i sat back in anticipation. When the stock kept tanking I went meh, what do they know?
And today this? A year to make a device? A year to optimise the PB OS for a phone?
Really?
Anyone still want me to show them a big fool?

Will the last one here in the room still holding a blackberry, please turn off the light. I am heading to the Apple Store. Who wants to join?

Why would you go to the apple store? How can you wait for a BB but when it gets delayed you go to apple? I think you were waiting for a BB for the wrong reasons. I own a BB and want a BB10 for the value that it brings (will bring) and I can't find it with other phones, and for sure I will not find it with Apple!

HAHAHAHAHAHAHAHAHAHAHAHAHAHA a LOT of people on here are furiously trying to remove their feet from their mouths now.

Yeah LOL What we'll hear from the RIMPIRE folks is hopeful optimism while RIM sinks further into obscurity. LOL

If you are personally offended by any news or comments about any random major corporation, I'd suggest you, sir, re-evaluate your priorities. Name calling? I remember when I was in 4th grade.

Hey everyone, BashBerry15 wants you to believe he is out here sharing the news of "any random major corporation"... You sir, are a moron.. and I'm sure you do remember when you were in 4th grade as it was just about 2 months ago when school let out for the summer.

Again, you miss the mark. Personal insults from behind a keyboard are about as substantial as Paris Hilton. I was simply stating that if you are personally offended by comments or news about a corporation (in this case RIM), you should perhaps think about why it is that you feel that way.

Do you work for RIM? Is your job in danger due to this news? Is a large portion of your retirement fund based in RIM stock? Are you one of the corporate big-wigs at RIM and thus responsible for much of this bad news?

If you answered yes to any of the above, I could certainly understand your dismay, though name calling should be reserved for the less-educated (I assume that as a hockey coach you are in charge of children, or perhaps young adults if you are quite adept at your profession, and are thus well-enough educated to understand name-calling is an ineffective means of communication). However, if you are just the average tech consumer like myself and the majority of those here, I would suggest that you relax a bit and not take things so seriously.

I find it funny how you come out here and bash RIM (aka troll) and then call me out for being childish.... because what YOU are doing isn't childish.

Pot...... meet kettle.

You (and many others) are crying over bad news that in no way affects anything real in your life - which cell phone you own is, despite popular belief, quite trivial in the grand scheme of things. And thus, I laugh. In no way was this bashing RIM, nor was the laughter even directed at the company itself.

Also, you ignored my entire post above (or more likely had no intelligent retort) and so simply resorted to calling me a hypocrite (though I'll give you credit for the novel and brilliant metaphor of the pot and the kettle). I once owned a kettle. Oddly enough, however, it wasn't black, it was silver, which leads me to always laugh when someone brings up a pot calling a kettle black. Don't people know pots and kettles come in all shapes and colors? Furthermore, what place is this where kitchen utensils can talk to one another? And who overheard them talking in the first place to decide it was, indeed, the pot who called the kettle black, and not the other way around?

Anyway, perhaps instead of fussing over the future of a company that has literally nothing to do with you, you could delve deeper into this mystical legend of the talking pot and kettle. It would be just as much a waste of your time and energy.

Speaking of wasting of time and energy.. way to write a dissertation about a common idiom.

"Anyway, perhaps instead of fussing over the future of a company that has literally nothing to do with you" - touche

2013? thats a bit much now. i dunno if i can wait that long. my torch is due for an upgrade. maybe i'll buy bb7 in cash and save mu upgrade for bb10

Kinda what I'm thinking. And I think a lot of people are going to be in that position. If this turns out to be true then the sales on BB10 are going to suck pretty hard simply because everyone will have upgraded their 9900's to droids and iphones. Waiting a couple of months is one thing, waiting six is CRAZY.

I tried it and it's really nice. Go Lumia if you do, but you'll be back when BB10 comes out. I tried a Lumia 710 for a month, then gave it to my girlfriend.

Not waiting anymore going next week and getting a galaxy nexus a shot. If rim servives this one might be back in 2 years.

ya i could see the end of the tunnel when they said this year but now its a new year its a bit harder to wait.

I'm an optimistic when it comes to RIM, but I am now getting close to agreeing with the naysayers. That's at least three months for Windows Phone 8 who is coming for a lot of the same "get stuff done" market.

we were all optimistic but....as usual...rimm fails to deliver...after reading the article below makes me wonder why we were optimistic

RIM faces the most difficult period in its history. RIM, which fathered the ground-breaking BlackBerry in 1999, has hired a team of bankers to help it weigh its options. Those options include partnering with other companies, licensing software and overhauling its business.

Here's a look at recent developments as the company struggles to regain market share lost to Apple's iPhone and devices running Google's Android operating software:

Sept. 15, 2011: RIM reports a sharp drop in net income and revenue in the fiscal second quarter and says it has sold far fewer PlayBook tablet computers than it expected.

Oct. 10: Email and Internet services are disrupted for three days, primarily outside North America. RIM says a crucial link in its infrastructure had failed, and a backup didn't work either. By the third day, other users, including those in the U.S. and Canada, were affected by a backlog of traffic.

Oct. 25: RIM says it is delaying the launch of an upgraded operating system for the PlayBook until February, saying it isn't up to its standards yet. The company also says the new version initially won't have the popular messaging service BlackBerry Messenger. It's the third delay announced since the features were promised in April.

Dec. 2: RIM says it is writing off much of its inventory of PlayBook tablets after it had to sell them at a deep discount. The model originally priced at $500 now costs $200. The company says it's taking a pre-tax charge of $485 million in the just-ended quarter. RIM also says it will sell fewer BlackBerrys in the holiday quarter than in the one that just ended. It also says it won't meet full-year earnings guidance of $5.25 to $6 per share, the third cut in a row.

Dec. 6: RIM says "BlackBerry 10" will be the new name for its next-generation system after the company loses a trademark ruling on its previous name, BBX.

Dec. 15: RIM says new phones deemed critical to the company's future won't be out until late 2012. The company says the BlackBerry 10 phones will need a highly integrated chipset that won't be available until mid-2012, so the company can now expect the new phones to ship late in the year. The company also says BlackBerry sales will fall sharply in the holiday quarter compared with the three months that ended Nov. 26. RIM says it would only ship between 11 million and 12 million BlackBerrys in the fourth quarter, down from 14.1 million in the third quarter.

Jan. 22, 2012: RIM founder Mike Lazaridis and long-time executive Jim Balsillie announce they will step down as co-CEOs. Thorsten Heins, a chief operating officer who joined RIM four years ago from Siemens AG, was named as their replacement. Lazaridis and Balsillie remain on the board.

Feb. 21: RIM finally releases an upgraded operating system for its PlayBook. The free upgrade allows for built-in email, calendar and contacts on the tablet — features promised within 60 days after the PlayBook's launch last April. The PlayBook had received negative reviews because it launched without an email program and the popular messaging service BlackBerry Messenger. The new version still doesn't include the messaging service.

March 29: RIM says Balsillie has resigned from its board, and two top executives are leaving. RIM also writes down the value of its product inventory again as the company reports a loss of $125 million, its first quarterly loss since fiscal 2005. Heins doesn't rule out a sale, but he says it is not the main direction of the strategic review he's overseeing.

April 26: Newest board member of RIM says a turnaround could take three to five years. Prem Watsa, RIM's third-largest investor, says he sees his investment in the company as a long-term one, adding that RIM's fortunes won't be reversed soon.

May 1: RIM unveils a newly designed smartphone prototype powered by its upcoming BlackBerry 10 system. The prototype BlackBerry has a touchscreen, but no physical keyboard like most BlackBerry models. No update was given on the new system's launch date.

May 2: Company stresses that while the prototype has no physical keyboard, RIM will continue to make some models with one.

May 8: RIM announces hiring of two senior executives from struggling tech companies. Frank Boulben, the new chief marketing officer, comes from LightSquared. Kristian Tear, the new chief operating officer, is from Sony Mobile Communications.

May 29: RIM says it will have an operating loss in the current quarter and significant layoffs this year. The company says it has hired J.P. Morgan and RBC Capital Markets to help evaluate various strategies, including opportunities to partner with other companies and license software.

June 20: RIM says it has started laying off employees as part of a restructuring plan aimed at saving about $1 billion this year.

June 21: Company says the first BlackBerry device running BlackBerry 10 will not have a physical keyboard, only a touch-screen one. Ones with hard keyboards will eventually be made, but the company declines to say when.

Monday: Stock hits lowest level since 2003. Morgan Stanley's Ehud Gelblum says the company is facing a "triple whammy" in the current quarter. Gelblum says RIM's phones are aging, growth in the global smartphone market is slowing, and shipments are likely to decline ahead of the launch of BlackBerry 10 phones.

Thursday: RIM issues earnings for the fiscal first quarter after the market closes.

bro if anybody gets anything positive out of what you just wrote they are crazy, all what you wrote happened and now the one little saving grace they had which was a September resurgence of new os and new phone and they are pushing it to next year after new about google jelly beans, windows phone 8 and iphone 5, i think my next phone for sure wont be a blackberry and that not trolling just straight consumer observation

+100k

I hate all other phones, but my current bb is so old and i've waited far too long for bb10, so its a nexus, s3 or W8.

RIMM just fucked themselves. Its odd that they think they can afford to wait until q1 of 2013. Hmm I need to figure out if I wanna go android or apple now.

I am a pretty strong defender of RIM - Blackberry, but you're right. NEXT YEAR??? If this doesn't kill them, I don't know what will. I've already tried the two A's. I want a new BB! Damn.

Well, after waiting for Sept/Oct, I think this has finally put me over the edge with RIM. BB10 sounds awesome but I'm not waiting until possibly March, April, or May. Looks like after 5 years, I will be leaving BlackBerry for possibly iPhone.

OK so everyone who said that Thor hasn't missed a deadline, he just missed his first! BB10 missing the holiday season is just inexcusably stupid at this point. And now you've just pushed back the window for developers too, so anyone developing apps for BB10 will now have to wait even longer to see any possible revenue from it. What happened to "laser focus" to meet deadlines.

But I thought you weren't trolling.. just sharing the news of "some random major corporation"?

ps. You butthurt because I called out your boyfriend?

Haha yeah you guys are making me LOL too, never thought I could be so amused watching my money pi** down the drain.

I wish I had something strong to drink.

BB10 phones will never launch. I think the reality that RIM will no longer be a player in the smartphone market is finally here. I actually think not beating Windows Phone 8.0 to market puts them too far behind iOS, Android, and WP to recover.

This is all a sneaky plan for all of us that were holding out for our upgrades to now go out and get BB7 phones!

Oh no! The trolls and haters are gonna be beside themselves with joy at the revenue being down 33% and the delay of BlackBerry 10 until Q1 of 2013. Come on RIM - we're all rooting for you!

They are already out in full force... and iBGR already has two big front page articles up about it.. I could stomach the revenue issue, but the BB10 delay sucks. Oh well, my 9900 isn't eligible for an upgrade for at least another year.

Adam, I am hoping that they are pushing out BB10 to get rid of some inventory but seeing that really makes me think they will not make it to January which is after every season in which people purchase phones. I dont think they can afford to miss back to school september black friday november or christmas december and still be a viable company! I still have hope and will have a BB for better or worse either way

With a couple billion in cash, no debt, and an expanding subscriber base everywhere outside North America, how do you see that?

q1 makes sense, Qualcomm probably put them behind everyone else for getting chips and they (qualcomm) are already maxed out.

Still here.

I don't see a push-back from Q4 2012 to Q1 2013 as massive. Certainly not good news, but not the end of the world.

While it's not the end of the world; it's the optics that are bad. Yet again, this is another example of RIM failing to deliver on its promises when it says it will deliver on it. Delay after delay after delay is what most adversely effects this company; that is, people simply do not believe or trust that RIM can deliver on anything that it promises.

With the new CEO; the new launch of BB10, RIM had one opportunity to show that it had changed; to separate themselves from RIM of the past; to show to consumers, stock holders, the media, and others that they finally got it. And they failed.

Is the end of the world coming because of this? Of course not. But did RIM manage to convince people that they have changed; that they were able to compete; that they were able to deliver exceptional products on time - no.

And that is why this delay is so damaging. RIM of today is no different than RIM of yesteryear. And in that, the outlook is poor.

Come on RIM! You're not helping my decision to stay or jump ship. Releasing BB10 this year is a MUST!

That's devastating news. Why they allowed all the 'ahead of schedule' leaks and failed to address them if this is the true situation. All I can say is that I am really disapointed. The new CEO did not follow through on his promises. It makes all of us advocates and supporters look bad, since we try to defend this company using his words.

The only thing that can save this is putting at least one phone out in Q4!

Let's freaking rock'n'roll this already!!!

I have been holding my upgrade waiting for Sep/Oct...a Q1 timetable is unacceptable and I will look at getting the new Iphone or Android instead. My 9800 is beat, battery lasts less than an hour. Been committed to BB since the 7130c...but they've failed me and others too many times.

Im on you with this one my 9800 is dying!!! I was patiently waiting for BB10 but this is just unacceptable. Ill upgrade and once BB10 is out if they are still around we will see. But this is just unacceptable!!!!

Feel your frustration,right with ya...my curve is on it's last leg-have a upgrade waiting but didn't want to waste it .

For a lot of people this delay is the final straw. Can't say I blame them. RIM shit the bed again. So sad. I took a quick look at CNN and I couldn't find the story. Good thing ObamaCare and the Eric Holder story are more important.

I can understand the losses, it was expected, but the delay in BB10 is a major blow. I am a die hard advocate for RIM, but i dont know how to process this. While i know that i will wait it out because my 9900 is still going strong and does what a phone is suppose to do "communicate", others will certainly call this the last straw.

All I can say now is Good Luck RIM.

So now that's possibly a delay of another 9 months. That's just disgusting and inexcuseable. The fact that RIM has been working for about 1 1/2 to 2 years on this phone and OS and to delay it even further...

I'm a big proponent of not pushing anything until it's ready, and I've argued in favour of RIM; however this delay with the new phone is possibly one of the worst things that could happen. I was just looking at my coworker's Droid and he was playing a wicked game. Before reading the RIM news I was thinking I could possibly be playing that same game this fall...

and then the hammer fell..

Now maybe you guys will realize it's still the same old RIM. You can't even act surprised, when is the last time they didn't delay something?? It is only going to get worse...

At least Italy won eh Kevin. Where are you Kevin? Your flock needs you. Have you now gone Android Central full time?

What a joke! RIM doesn't deserve QNX...i wish samsung or HTC bought QNX...hate to see a good platform go to waste...how can any user or investor trust anything they say at this point...Let's Rock and Roll these nutz!

No one who truly understands RIM should be surprised that, yet again, there is a delay with a product launch. This was to be expected. It's disappointing to be sure. But if you've been with Blackberry for any length of time, you honestly should have expected this.

I wonder if the OS 2.1 update for the Playbook has been delayed as well?

It would almost have to be, if they are behind on getting the new devices out and the new OS, then I am sure the PB's upgrade schedule has been pushed back as well.

"...the integration of these features and the associated large volume of code into the platform has proven to be more time consuming than anticipated."

Yet they're reducing their workforce by 5000. Smart thinking.

Hiring for BB10, laying off for old technology. Should have done more of that sooner! Why were bonuses given recently?

If their churn is mainly focused on BB10, how will they support OS 7 (and PlayBook 2.0)? It doesn't look reassuring for current device owners, not to mention families of RIM employees.

So much for, "We must launch products on time as promised".

That "priority" failed coming out the gate.

Not good news. I think it's over for RIM. They should release BB 8 for all existing BB 7 phones and hope for the best.

Hmmmmm. Fifth generation iPhone will be out in Sept/Oct time frame. Difficult to see RIM catching up, or even making a sizable dent.

That may be the time to give it up and buy one of the new iPhones.

There is an old saying about businesses: "The first symptom of death is denial." Is RIM a sleeping giant or a ripening cadaver?

That is it, then. Another Canadian high tech company dies. Nexus 7 announcement yesterday will put a serious crimp in Playbook sales, and now BB10, the only real hope RIM had to get itself straightened out is being pushed back 1-2 quarters, with BB10 being targeted at existing BB users. By the time Q1 2013 rolls around, there won't be enough BB users to keep RIM alive at the rate that BB is losing its user base. By then, even if every existing BB user were to go to a BB10 device, it still won't keep RIM afloat.

Kostas

Will they be pushing any more updates etc for bb 9900 to keep all the current flagship bb owners happy or do we all just shut up keep lapping up hype and finally get bb10 next march ,not a knocker as i love my bold

Windows is good. Only thing I didn't like was the Zune sync nonsense, because it lacks usb storage mode.

Man. These comments are full of depressing shit. Don't tell me about reality. If all you negative fucks would fuck off, I'd kindly wait until 2013 for my BB10 device. You entitled cunts.

So this delay is because of the OS and coding? if the team working on the hardware isnt behind scedule could that mean more than one phone at launch?

This is truly a disappointment,just stab us RIM and get it over with...Q1 2013 psssh rather hold that thought....

Its always the same thing with RIM I'm fed up. I'm getting iPhone 5 (=| not gonna wait another 6+ months for one device when others can release more than one every year

Its always the same thing with RIM I'm fed up. I'm getting iPhone 5 (=| not gonna wait another 6+ months for one device when others can release more than one every year

He is coming over to your house to give your stupid a_s a beat down and then take away your mommy's iPad so you stop trolling. Better go hide b_tch...

After hours now down over 17%...yea, not looking too good. And to think, my portfolio over the years was RIM, Nokia, Palm, & Motorola. I sure know how to pick-em!

It's over!! So much new stuff coming out this year. It had to be this year or forget about it. Why should anyone wait...I'm a die hard blackberry fan, but I'm not waiting on blackberry 10.

This #*@+!/in sucks. I've been very patient waiting for BB10. I've been holding on to my 9800, but its already long in the tooth. Now is a good time to allow us to upgrade to a BB7 phone and still not loose our upgrade deal next year with a BB10 phone. I'd really rather not switch to an Apple or Android phone. I guess I'll just get a 9900 if push comes to shove.

Same here. Really disappointed by these news but first these were rumors, and second we *wanted* to believe that a change in CEO guaranteed a fixed delay for BB10. I guess we were wrong.

Anyhow, that doesn't remove all these wonderful features we've seen so far about BB10, and if they have to take time to finish them correctly, with a bunch of other features they haven't announced yet, I'm with them.

For now, my upgrade will go for a 9900, which I'm sure will give me a better experience than my BBOS 5.

Still waiting for this awesome BB10 phone!

Hey BashButthole15... shouldn't you be heading over to iBGR. They like your kind over there. You know, the "sharing news about a random major corporation"... aka LOSER TROLL

How in Gods name did RIMs cash INCREASE from 2 billion to 2.1 billion from last quarter?

Whatever, honestly, to me it's not so much about when BB10 will be released as much as it is IF BB10 will be released.

Yes, they still sold 7.8 million BBs, however even those numbers are going to look great compared to the next 2 quarters. Think about it, in the markets where they are growing user bases it is places that BBs are literally a luxury item...what that means is a large percentage of the population can't afford one. So BB better hope and pray they can move a bunch of phones overseas, because there is ZERO reason to upgrade to BB7 now and people who are due for upgrades are unlikelty to wait until perhaps April of 2013 to get a BB10

If I understand the call correctly - and Chris I would love to hear some comments from you on this - RIM is taking the income they are making from selling off inventory and not spending the money so it builds up their cash - but that would mean they are not building new phones, new tablets, buying new machines to build out the new phones etc, so it's a double edged sword. I think it means that once they begin the ramp up to BB10 then - watch the cash start to draw down quickly.

In addition it sounds like they are losing money on the phones they are selling now - but taking the hit to raise cash for at least 2 more poor quarters and the BB10 build out and promotion.

In addition think about all the "advancements" BB10 is supposed to have, will those things be the norm by the time the phone comes out? If so another piece of bad news for RIM.

What a mess.

Yeah, I'm sure you are loving it. Who wouldn't like seeing thousands of people lose their jobs? I know morons like you are probably sitting back with a tiny chubby and a bottle of KY... just remember chump, KARMA'S A BITCH!!

LOL LOL LOL

Are you gonna blame me for the 5k layoffs?

Could it be my short selling the one responsible for RIM f*ckups?

Go get your medication, you junkie!

Yeah bro, I'm blaming you for the 5K of layoffs... Go celebrate some more that good people are losing their jobs and have to now find alternate ways to feed their families and pay their mortgages. What kind of low life does that? Seriously... you should be ashamed of yourself!!

This sucks... I'm going to use this opportunity to test out windows phone 8 which looks promising in the fall. At least RIM should have solid OS running by then we hope.

This sucks! I don't think BB10 will ever come out now. :( I mean, how can they keep up with Google?! or Apple? or Microsoft? not happening. No- RIM is finished. :(

This website is destined to become just like WebOS "nation" :( And I lived on Crackberry for the longest time.

A lot of people can't wait this long to upgrade and are understandably going to jet- Now RIM has to win those people back when it could have just kept them. and everyone knows it's super hard to get people to leave the iOS cult. As more time goes by, it is getting exponentially more difficult to compete with the Android virus and the iPhone cult. I hope RIM can succeed, and if they do, they wont be anything like the company RIM is today.

Not trolling one bit, just sad-

the US customer base wanted to see BB10 phones this year. I can see a lot of user switching to the new android and apples devices towards the end of the year. especially if the iphone 5 comes out before the BB10 devices. the new Features look great for bb10 and would offer a great boost over current phones. maybe to dissuade the masses they should find a way to gear the new os to work on the bold and torches??? keep the user base happy and give them a reason to upgrade to the newer hardware.

Anyone else ever going to ever believe a deadline RIM will set? They've never met one in the past 3 years. What a joke - new CEO didn't do anything, can't blame Mike and Jim anymore, the whole company from ground up is a shit hole.

Who cares...life goes on

We'll see improvements to the playbook. The SDK is improving.

Current BB phones are still excellent for communicating.

RIM needs to step-up with marketing current products.

This is definitely the final nail in the RIM coffin, I'm glad I sold my PlayBook last week when it still had some hope of being valuable.

I have a beautiful 9860 which is a fantastic phone and a playbook for all my media stuff while travelling. I tried both iphone and HTC which just are simply not as good as bb. I am happy to wait until Thor is ready to let us have bb10. I understand people will be disappointed and this is gonna hurt, but bringing out another half baked product will undoubtedly kill RIM. I still have faith, I haven choice because I don't like the competition...... LOL!!!

So what are they gonna do between now and 2013? Releasing another crappy curve? Oh my god, what a disaster! The Android Jelly Bean looks amazing, iPhone5 is just around the corner... people will buy them and by the time BB10 is out people will already have new phones...

I think that's it really. We can say goodbye to Blackberry.

I'm still happy with my BB7 9900 and don't mind waiting. I know everybody may think the pastures are greener on the other side, but I know I've always come back to BB. Even if those other phones have all the best hardware and a ton of apps I always come back to a solid communication device. Remember when everyone complained that RIM put out a half baked tablet? Maybe they don't want that again hence the delay of BB10 phones.

here's my issue, by the time this gets released lets say jan/feb (unlikely but you never know) will bb10 be behind the game.... apple will be more than halfway ready for ios7 and android on to the next desert named os.

i mean any new technology they have been developing im sure is already being duplicated by apple, google, microsoft, etc...

next dessert should be key lime pie. My bro says it goes in alphabetical order, but you're right about all these features being used elsewhere. the bb10 keyboard is already being used in iphone cydia or whatever it's called.

Yup. They delivered an awesome developer experience showcasing some cool tech... and proceed to give the competition had a year to figure it out.

Everyone has said they better have a phone that is bug free and kick-ass. Rome wasn't built in a day and phones aren't either. BB10 OS will outpreform ios and android kiwi (just a guess of what the next tweak to droid os wil be) when the phones come out.

Although I am a BB fan, the truth is that this delay means I will shift to i-Phone 5 now. Not because I want to, but because I have to. My company has switched to BYOD and the app for email etc is not available for BB. I had hoped for BB10 for that. That may still be the case but if I wait until next year, I will loss significant tax advantage.... EUR 500 approximately and I won 't let that happen. I guess lots of other people will have firm reasons to switch, just because the delay causes too much practical problems to wait any longer for BB10. It's a pity though... Would have loved to get my hands on a BB10 device.... Maybe in the future.

What I would like to know, when is the fire sale? I would like to get my greedy claws on some cheap legacy devices like the playbook.

that's the only thing i'm upset with. I paid full price on day 1 for a 16gb playbook. sucks being an early adopter

Knew this was coming.....Do us all a favor, Crackberry...Quit talking about Blackberry 10....it's FAR off in the future(if ever). I know there is nothing much else to talk about, but I am sure RIM can give you something we all know is fabricated.

I for one will still be waiting for the BB10 next year. I'm still on my BB 8900 Curve, and it's getting out of date, but it's still going strong. I fell into the Lake while boating and my phone was in my pocket but it still works fine.

Am I pissed? VERY!

Will I wait? Unfortunately, yesl. I hate the Iphone because of all their proprietory software, and I don't really like Android. Ever since I got the playbook, I'm hooked to gestures, so I can't stand any other touchscreen.

COME ON RIM! YOU CAN DO IT! BUT DO IT FASTER!

You're a fool if you think BB10 will be released next year. RIM will not see the day of light through 2012. The writing was on the wall and optimist like yourself chose to be in denial. I mean really, you actually think BB10 will come to fruition? I have a bridge in Brooklyn to sell you or anyone else that thinks so.

I hope rim gives us a code to use our berries without bis. If they go out of business, if not it will be like owning a sidekick.

Stick a BIG fork in RIM........there DONE!!!........OH well, might as well start my research on a new brand (different) :(

Too bad! I feel sorry for RIM but if they are clearing up the mess good if they are running like headless chicken then no hope.Better to come up with good product rather than a shitty one just for the heck of it.
Still have high hopes from bb10.Till then my 9850 does me a good job.

No surprise RIM is dying. It's just a matter of time.

I was kind of stupid to select a bold 9900 six months ago, and I'll have to live with it for another 2.5 years. Who knows if RIM will survive that long?

Another Nortel.

It was stupid? Does your phone not work? Or did you buy it with the assumption that BB10 would be out in October.. but you still wouldn't be able to upgrade for 2+ more years?

my plan allows me to upgrade every year, but you don't have to wait, you can always pay retail for the phone or if you talk to them like you are leaving, they will upgrade you. you are living in the past if you think you have to wait two years. you sign a two year contract for the plan, not the phone itself.

Oh really? Why don't you tell AT&T that then.. because when you buy a subsidized phone (aka upgrade price) and sign a 2 year deal.. you are locked in to both the plan and phone for 2 years .. unless you want to pay FULL RETAIL price for a different phone. Don't believe me, call AT&T. They are so strict with their upgrades, they wouldn't let my wife upgrade 3 months early and just extend her new 24 month contract by the 3 months.

ps. AT&T doesn't give a rats arse if you leave. They'll make you pay your early termination fee and tell you to not let the door hit you on the way out...and it isn't like I have some $29.99 plan with them either.. my monthly bill is over $200 a month.

What are they waiting on now? I believe they were waiting on LTE chipsets. I guess they have bit off more than they can chew. Iphone and Android have to love it.

No matter what, RIM will not go out of business like Nortel. At least not in the next 5 years. Nortel had no money and owed a lot of money. RIM has money right now and if things go really bad, they will just get rid of whatever portions of their company that is no profitable.

Worst case scenario, RIM becomes a service oriented business and gets out of the hardware business.

Best case scenario, they bouce back and beat apple once people realize that Iphones are ifads.

I'm saddened by this news... I was willing to wait for BB10 until fall but next year??!! Probably not gonna happen. So I guess it will be an Android or Windows phone for me soon.... {sobbing & rocking in the corner} I just need to be held....

Honestly, after this call, what has really changed?

* BB7 phones are not the future but will have to keep the ship afloat for the short term
* BB10 was announced but not delivered
* BB10 is the only thing which can keep BB alive for the future
* RIM was bloated with too many staff and was into too many things at once (kinda like Apple was when Steve Jobs took over, and he also slashed products and projects and focused on just 3 or 4 from 50+)
* RIM had too many devices, too much complexity, resulting in too high a cost and scared away developers. They are forced into streamlining and simplifying their portfolio. Good!
* There is a still a huge market of people who don't like typing on touch screens, because of long nails or whatever. Nobody is really serving this market, and nobody can make QWERTYs like RIM.
* They still own the enterprise market, which is concerned with security and which doesn't really care about apps, and would give BB10 a serious look. Not all of them will switch to other products
* What they're aiming for with BB10, nobody else is doing. The professional who needs to have immediate and one-thumb access to all of their productivity with the flick of a thumb is alive and well. Apple makes devices for media consumption first and foremost. Android is copying Apple. Windows Phone keep changing things and breaking their own compatability with previous phones and don't have a good reputation in the mobile space and got no traction with Mobile 7.
* They need to buy themselves 9 months to survive. It used to be 6. Will 3 months be the end of them? Really? They have no debt so far. Even Apple borrowed large money before they turned around their company.

So while it sucks to wait even longer, this pent-up demand is still around, and people who aren't crazy about camps 1 and 2, may find a good alternative here. It won't be the platform for everyone, but if they can deliver a truly compelling, differentiating experience, I don't see why they couldn't make it work.

It they are really smart, they'll take the company private, and focus on delivering value rather than dealing with the street. It's become a sideshow and distracting them from their goals.

GO RIM!!!

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