Top Tech News

CIO Today Network Sites:   Top Tech News  |   CIO Today   |   Mobile Tech Today   |   Data Storage Today
News & Product Reviews for Tech Leaders
Vblock™ Systems:
Advanced converged infrastructure
increases productivity & lowers costs.

www.vce.com
Thursday, April 24th 
Next Generation Data Center Is Here!
Trending Topics:   Security Heartbleed Big Data Cloud Computing Windows XP Data Centers OS X Mavericks
Home
Network Security
Tech Trends
Cloud Computing
Hardware
Applications
Microsoft/Windows
Apple/Mac
Mobile Tech
World Wide Web
Big Data
Communications
Hackers
Chips & Processors
Linux/Open Source
Personal Tech
Press Releases
 
Free Newsletters
Top CIO News
 
Mobile Tech Today
 

Mobile Tech

RIM Remains Optimistic, Despite Q3 Hit

RIM Remains Optimistic, Despite Q3 Hit
December 21, 2012 11:03AM

Bookmark and Share
Although optimism for RIM's BlackBerry 10 (BB10) has been growing in recent weeks and helping RIM shares more than double off the 52-week low, analyst Shaw Wu says there's still need for broader BlackBerry 10 support. On the upside for RIM, is the company's $2.3 billion in cash reserves, despite its huge operating losses.

APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.

Research In Motion's third-quarter results didn't surprise many analysts. Nevertheless, investors were selling off shares Friday as the BlackBerry-maker signaled falling unit sales and revenue. RIM only shipped 6.9 million BlackBerry smartphones and 255,000 BlackBerry PlayBook tablets.

Revenue for the third quarter of fiscal 2013 was $2.7 billion. That's down 5 percent from $2.9 billion in the previous quarter and down 47 percent from $5.2 billion in the same quarter of fiscal 2012. About 60 percent of RIM's revenues came from hardware, 36 percent for service and 4 percent for software and other revenue.

"RIM continued to execute on its product roadmap plans and to deliver on key financial metrics as it gets set for the global launch of BlackBerry 10," said Thorsten Heins, president and CEO of RIM. "During the third quarter, we continued to demonstrate our strong financial position, generating $950 million in cash flow from operations, and increasing our cash position significantly to more than $2.9 billion."

Handset Sales Slow

Heins remained optimistic. He said more than 150 carriers are completing technical acceptance programs for the first BlackBerry 10 products, and beta trials of BlackBerry Enterprise Service 10 are under way at more than 120 enterprises, including 64 Fortune 500 companies. BlackBerry 10 rolls out on Jan. 30.

Still, RIM admitted that the picture might grow dimmer before BlackBerry rises again. RIM expects to feel continued pressure on operating results as it gets set to launch its BlackBerry 10 platform in its fourth fiscal quarter. The company said it plans to consider using pricing initiatives on BlackBerry 7 devices and service fees in some markets as a way to maintain its subscriber base and drive more BlackBerry users.

RIM also noted that the timing of the BlackBerry 10 launch event could impact sales of current BlackBerry 7 products as some customers may put off purchase decisions and wait for BlackBerry 10 devices. All these factors are expected to affect unit volumes, subscribers, margins and service fees. RIM signaled a significant increase in its marketing spending this quarter to support the global launch of BlackBerry 10. That will lead to a fourth-quarter operating loss.

Hanging in the Balance

Shaw Wu, an analyst at Sterne Agee, told us the most important metric remains RIM's $2.3 billion in cash despite huge operating losses.

"It is not clear how sustainable this is as this is an accounting maneuver as opposed to an improvement in its fundamentals," Wu said. "The other big question is whether the company has a sustainable profitable business model where it needs to invest heavily to keep up with the vast resources of Apple, Google and Microsoft. The company is currently losing several hundred million dollars per quarter with profitability likely four to five quarters away."

Although optimism for BB10 has been growing in recent weeks -- and helping RIM shares more than double off the 52-week low -- Wu said there's yet a need for broader BlackBerry 10 support.

"For carriers, the rationale is simple where many are increasingly leery of the growing dominance of iOS and Android and have been looking for a viable third or potentially fourth platform with the hope that either BB10 and/or Windows 8 takes off," Wu said.

"But does the world really need a third or fourth mobile OS touchscreen platform? And what makes it different? So far, developer support and customer adoption have been lukewarm, so it remains to be seen if carrier hope wins out. To us, it's not just the number of apps, but the quality of apps, and whether developers are making money and customers are using them."

Tell Us What You Think
Comment:

Name:



 Mobile Tech
1. Opera Coast Offers Safari Alternative
2. What Might an Amazon Phone Offer?
3. OnePlus One Boasts Android Weapon
4. Samsung: $2.2B Too Much for Apple
5. Review: Windows Phone Advances




 Most Popular Articles
1. Resetting All Passwords Now May Be Worst Heartbleed Fix
2. Silverpop: IBM Marketing Portfolio Gets Personal
3. Is Heartbleed the Biggest Web Security Threat Ever?
4. Analyst: Samsung Galaxy S5 Won't Sway iPhone Lovers
5. Where Do Web Sites Stand, Post-Heartbleed?

Have an informed opinion on this story?
Send a Letter to the Editor.
We want to know what you think.
Send us your Feedback.

 Related Topics  Latest News & Special Reports

  IBM Targets Big Data with Power8 Line
  Opera Coast Offers Safari Alternative
  FCC Defends Internet Traffic Proposal
  Fund Seeks To Head Off Heartbleeds
  Salesforce Developing App SOS Button

 Technology Marketplace
Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
Next Generation Data Center Is Here! Vblock™ Systems from VCE
 
Contact Centers
HP delivers the future of the contact center with HP Qfiniti 10.
 
Data Storage
Next Generation Data Center Is Here! Vblock™ Systems from VCE
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Enterprise Hardware
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
Tech Giants Fund Initiative To Prevent Future Heartbleeds
Can more funding prevent Heartbleed vulnerabilities in future open-source software? A new Core Infrastructure Initiative at the Linux Foundation is attempting to find out.
 
What Verizon's Data Breach Report Can Teach Enterprises
It’s probably not a jaw-dropper, but cyberespionage is officially on the rise. And the use of stolen or misused credentials is still the leading way the bad guys gain access to corporate information.
 
Top Cyberthreats Exposed by Verizon Report
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Navigation
Top Tech News
Home/Top News | Network Security | Tech Trends | Cloud Computing | Hardware | Applications | Microsoft/Windows
Apple/Mac | Mobile Tech | World Wide Web | Big Data | Communications | Hackers | Chips & Processors
Linux/Open Source | Personal Tech | Press Releases
Also visit these Enterprise Technology Sites
Top Tech News | CIO Today | Mobile Tech Today | Data Storage Today

Services:
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About CIO Today Network | How To Contact Us | Article Reprints | Services for PR Pros (In partnership with NewsFactor) | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 Top Tech News. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.