RIM Earnings: Here’s Why the GLORY DAYS are OVER

Research In Motion Limited (NASDAQ:RIMM) swung to a loss in the first quarter, missing analysts’ forecast. Research In Motion is a designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market.

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Research In Motion Limited Earnings Cheat Sheet

Results: Reported a loss of $518 million (99 cents per diluted share) in the quarter. Research In Motion Limited had a net income of $695 million or $1.33 per share in the year-earlier quarter.

Revenue: Fell 42.7% to $2.81 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Research In Motion Limited reported an adjusted net loss of 37 cents per share. By that measure, the company fell short of mean estimate of 43 cents per share.

Quoting Management: “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.”

Key Stats:

Revenue has fallen for the last four quarters. Revenue declined 24.6% to $4.19 billion in the fourth quarter of the last fiscal year. The figure fell 5.9% in the third quarter of the last fiscal year from the year earlier and dropped 9.8% in the second quarter of the last fiscal year from the year-ago quarter.

For two quarters in a row, the company has come in under analyst estimates. In the fourth quarter of the last fiscal year, it missed expectations by one cent with net income of 80 cents versus a mean estimate of net income of 81 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is 33 cents per share, down from 62 cents ninety days ago. For the fiscal year, the average estimate has moved down from $2.91 a share to $1.87 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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