BlackBerry maker, Research In Motion– RIM, declared its financial results for the quarter ended 1st September 2012. The company reported revenues of $2.9 billion, up 2% compared to the previous quarter. It reported a net loss of $235 million which has declined compared to the net loss of $518 million that it reported in the previous quarter.
The company is witnessing a decline in the sale of its devices, specially in North America, and other mature markets, where customers are switching to Apple’s iPhone and devices that run Google’s Android mobile OS. It’s now fighting for the third spot in the Mobile ecosystem with Microsoft, which is about to launch the next iteration of its mobile OS, Windows Phone 8, with hardware partners like Nokia, HTC and Samsung. RIM is switching to a totally new platform, BlackBerry 10, based on the QNX real-time OS, but its new devices (existing devices excluding the PlayBook tablet are not upgradable ) will launch in the first quarter of 2013. It’s enticing developers and had recently demonstrated some of the features of the new OS at the BlackBerry Jam conference.
“Despite the significant changes we are implementing across the organization, our second quarter results demonstrate that RIM is progressing on its financial and operational commitments during this major transition,” said Thorsten Heins, President and CEO.
– The revenue breakdown for the quarter for the company, was approximately 60% for hardware, 35% for service and 5% for software and other revenue.
– During the last quarter, RIM shipped approximately 7.4 million BlackBerry phones and 130,000 PlayBook tablets.
– RIM has 80 million subscribers across the globe, and 60 million of them use its messaging service, BlackBerry Messenger (BBM).
– The total of cash, cash equivalents, short-term and long-term investments was $2.3 billion as of September 1, 2012, compared to $2.2 billion at the end of the previous quarter, an increase of approximately $100 million from the prior quarter.
RIM expects expects to report an operating loss in the third quarter of fiscal 2013 as it transitions to BlackBerry 10. It said that there will be continued pressure on operating results for the remainder of the fiscal year based on the increasing competitive environment, lower handset volumes, increased marketing expense associated with the launch of BlackBerry 10, and some impact from pressure by customers to reduce RIM’s monthly infrastructure access fees.