Shares in Research In Motion (RIM) fell almost 10 percent in after-hours trading as the BlackBerry-maker reported weaker than expected quarterly profit and an outlook that disappointed analysts. Revenue for the company's fiscal second-quarter was US$3.53 billion, up 37 percent from US$2.58 billion in the same quarter of last year while net income for the quarter was US$475.6 million, down from US$495.5 million a year ago.
Adjusted net income was US$588.4 million. The company's main devices segment accounted for 81 percent of revenue (in addition to 14 percent for services, 2 percent for software and 3 percent for other revenue). RIM said it shipped approximately 8.3 million devices in the quarter and added 3.8 million net new BlackBerry subscriber accounts, bringing its total BlackBerry subscriber base to around 32 million.
RIM forecast revenue for its current quarter in the range of US$3.60-US$3.85 billion, a gross margin of 43 percent and net subscriber additions in the range of 4.0-4.3 million. However, the outlook received a lukewarm reception from many analysts. A lot of people on Wall Street have been talking up Q3 as one where RIM was going to come and blow everybody away and so there was this expectation and even though it's perfectly decent guidance with all kinds of great year-over-year growth and gross margins, it doesn't live up to the advance billing.
RIM forecast revenue for its current quarter in the range of US$3.60-US$3.85 billion, a gross margin of 43 percent and net subscriber additions in the range of 4.0-4.3 million. However, the outlook received a lukewarm reception from many analysts. A lot of people on Wall Street have been talking up Q3 as one where RIM was going to come and blow everybody away and so there was this expectation and even though it's perfectly decent guidance with all kinds of great year-over-year growth and gross margins, it doesn't live up to the advance billing.
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