Press Release: Research In Motion Reports Third Quarter Fiscal 2012 Results

By Kevin Michaluk on 15 Dec 2011 04:15 pm EST
-
loading...
-
loading...
-
loading...

Research In Motion

Research In Motion just reported their earnings for the third quarter of fiscal 2012. You can catch the press release below and jump over to marketwire for the full press release (w/ statements). The earnings call will take place at 5pm EST. We'll be live blogging it right here on the blogs and you can also listen live here. Once the dust has settled we'll follow up with our analysis and commentary.

Press Release

Research In Motion Reports Third Quarter Fiscal 2012 Results 

WATERLOO, ONTARIO--(Marketwire - Dec. 15, 2011) - Research In Motion Limited (RIM) (NASDAQ:RIMM)(TSX:RIM), a world leader in the mobile communications market, today reported third quarter results for the three months ended November 26, 2011 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Highlights:

* Revenue of $5.2 billion, up 24% from last quarter
* BlackBerry smartphone shipments of 14.1 million, up 33% from Q2
* GAAP net income of $265 million or $0.51 per share diluted; adjusted net income of $667 million or $1.27 per share diluted
* Subscribers up 35% year-over-year to almost 75 million
* Cash flow from operations of approximately $895 million
* Total of cash, cash equivalents, short-term and long-term investments of $1.5 billion

Q3 Results:

Revenue for the third quarter of fiscal 2012 was $5.2 billion, up 24% from $4.2 billion in the previous quarter and down 6% from $5.5 billion in the same quarter of last year. The revenue breakdown for the quarter was approximately 79% for hardware, 19% for service and 2% for software and other revenue. During the quarter, RIM shipped approximately 14.1 million BlackBerry smartphones and approximately 150,000 BlackBerry PlayBook tablets.

"Despite the challenges faced in the third quarter, the BlackBerry subscriber base grew to almost 75 million customers around the world. In addition, RIM launched a range of new BlackBerry 7 based smartphones globally and introduced holiday promotions that helped drive growth in the installed base of BlackBerry PlayBook users," said Jim Balsillie and Mike Lazaridis, Co-CEOs at Research In Motion. "RIM continues to have strong technology, unique service capabilities and a large installed base of customers, and we are more determined than ever to capitalize on our strengths to overcome the recent execution challenges surrounding product launches and the resulting financial performance. As part of our commitment to improving our performance to better meet the expectations of shareholders and customers, we continue to evaluate ways to improve in several areas of the Company's operations. It may take some time to realize the benefits of these efforts and the platform transition that we are undertaking, but we continue to believe that RIM has the right set of strengths and capabilities to maintain a leading role in the mobile communications industry."

The Company's GAAP net income for the quarter was $265 million, or $0.51 per share diluted, compared with GAAP net income of $329 million, or $0.63 per share diluted, in the prior quarter and GAAP net income of $911 million, or $1.74 per share diluted, in the same quarter last year. Adjusted net income for the third quarter was $667 million, or $1.27 per share diluted. Adjusted net income and adjusted diluted earnings per share exclude 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 $7 million ($6 million after tax) for the Company's cost optimization program that was implemented in the second quarter of fiscal 2012.Q4 Outlook

Revenue for the fourth quarter of fiscal 2012 ending March 3, 2012 is expected to be in the range of $4.6-$4.9 billion. Gross margin percentage for the fourth quarter is expected to be approximately 38%. BlackBerry smartphone shipments are expected to be between 11 million and 12 million units. Earnings per share for the fourth quarter is expected to be in the range of $0.80-$0.95.

Conference Call and Webcast

A conference call and live webcast will be held beginning at 5 pm ET, December 15, 2011, which can be accessed by dialing 1-800-814-4859 (North America), (+1)416-644-3415 (outside North America) or through your personal computer or BlackBerry® PlayBookTM tablet at www.rim.com/investors/events/index.shtml. A replay of the conference call will also be available at approximately 7 pm ET by dialing (+1)416-640-1917 and entering passcode 4466493#. A replay of the webcast will be available on your personal computer or BlackBerry PlayBook tablet by clicking the link above. This replay will be available until midnight ET, December 29, 2011.

32 comments

HabsSuck

better to understate than overstate a forecast

tumer

wow im sorry to say it but this is slowly begining to look like palm its down to 14$ wow someone is going to eat this up soon

HabsSuck

do some research, Palm lost money for years, RIM will make a profit of about $1.8 Billion this year

tumer

im goign to listen to the conference call i swear if jim says anything like spectacular or jawdropping tremendouse i am goiung down to head office and kicking his a**!

XPEH

Lol. I bet one share of RIM that he'll say at least one of these words: "extraordinary", "leapfrog", "amazing", or "unbelievable".

RIMPpire 817

That forecast of only 11-12 million units in the seasonally strong Q4 means that BB7 device sales have been weak and the pipeline is full

Darlaten

"During the quarter, RIM shipped approximately 14.1 million BlackBerry smartphones and approximately 150,000 BlackBerry PlayBook tablets."

And how many were returned I wonder?

ifarlow

Please don't forget that "shipped" is not the same as "sold." Although I would be interested to know how many were returned, I would be more interested to know how many were actually sold to end users.

andrewinsauga

I returned both my Playbooks. What a terrible piece of hardware

HabsSuck

I bought two for my kids, pre christmas presents, and they love it. I had one since April and it's a great piece of hardware bridges to my BB, internet access anywhere, love it.

mattBAM

Hardware is great, software is only half there though.

Jonathank

A 1080p camera is almost $200, Plus you get a great web browser on top of that. I would say it is worth $200...No?

sbx9900

i have a 1080p canon camera...no web browser, no games...worth more than $200....maybe i should return my canon and get PB instead? LOL...

Hwycop

What issues did you have with the hardware?

Rootbrian

I can only guess that was the reason. Keep tablets and other sealed battery technology away from it.

Heavens1

Good on Rim:

* Revenue of $5.2 billion, up 24% from last quarter
* BlackBerry smartphone shipments of 14.1 million, up 33% from Q2

ignites

you're missing the bad part. (ie. the last two paragraphs).

Its kinda how companies write their statements. Last few paragraphs are the 'real-deal' factors

CrackBerryTorch9800

RIM needs to stop with the 80's elevator music. Get into the new age, with ur music and ur phones.

ignites

they are trying to limit the conference calls to only 800,000 people by only allowing pb users to get on ;). Trying to limit the trolls i guess.

(i'm just teasing)

HabsSuck

market make no sense RIM reported exactly what was announced on Dec 2.
Q4 profit is going to be in the range of $460-500 Million yet the stock is down, what is important are the BBX and PB OS2.0 deadlines if those dates are pushed back then I can understand the drop in the share price.
The crazy thing about RIM stock is that Nokia has a better valuation and are losing money!

lgmarines

Stop being pessimist and get on the Blackberry Fan Wagon. As an Apple fan of many years I can attest to the great potential the Blackberry Playbook holds. I'm not saying that iOS is bad but let's be honest, it's getting old and boring fast. Now if RIM has something going for its self is that it offers something new for old customers of Apple. If they play their cards right they might still stand a great chance of winning faithful Apple customers back. They did with me. Blackberry rocks!

JPMorgan_

That's nowhere near good if you compare it with the industry growth, and direct competitors results

HabsSuck

and that's why they are still making money, the smartphone market is still growing.

Their biggest problem is that the market knows new phones are coming and many are waiting for them thus not buying BB7. That's the biggest problem when you are doing a massive transition to a new product line, who wants to be stuck with the old device?

Kiddo2050

meh, no news here. All this sh*t is irrelevant because the company's future depands on the BB10 phones pure and simple.

PineappleUnderTheSea

Not too bad, the PB is what stank it up. RIM should put its focus on phones, not that lame duck.

carlyincanada

Your title should be 2011...(not 2012, lol)

I love my Playbook & so happy with it.. looking forward to the upgrade in Feb!

ignites

they are talking about rim's fiscal year not calendar year. so it is rim's fiscal 2012 ending in march.

aswego13

Say what you will, but they still make the best hardware devices

maddie1128

We need a like button here- cuz I "like" what you said aswego and totally agree with you.
I also love my Playbook! I am looking forward to the upgrade for it- but in no means in a hurry as it pretty much everything I need it to do now.

anthogag

Okay you gave it to us right between the eyes...now let's rock.