Research in Motion Posts Disappointing Results and its Shares Fall
BlackBerry maker Research In Motion delivered more grim financial news on Thursday that caused some analysts to call into question the future of the company that created and once dominated the smart phone market.
The company said that its second quarter net income fell by 58.7 percent to $329 million, or 63 cents a share, from $797 million, or $1.46 a share, in the same quarter a year ago. Revenue fell by 10 percent to $4.2 billion, an amount greater than analysts anticipated.
“We question the company’s long-term viability,” said Bill Kreher, an analyst with Edward Jones. “The clock is ticking.”
Saw this coming a mile away. The market shifts much too quickly when the technology behind it is booming. Below is a prime example of why RIM is slipping. How did they expect a tablet with such a profound limitation to succeed? (emphasis mine)
He said RIM will display at a trade show next month a revamped version of the operating system that overcomes the greatest shortcoming of the PlayBook: its inability to directly receive BlackBerry e-mail. As he was with the new phones, however, he was vague about when the software will be available.