WATERLOO, Ontario-Research In Motion Ltd. reported revenues of $73.4 million for its second quarter, and lowered its outlook for the rest of the year as well as its target to reach profitability.
Investors seemed relatively heartened by the news, sending the company’s stock up about 5 percent to almost $9 per share.
“The success or failure to the RIM story will continue to rest on demand in the end market,” wrote UBS Warburg in a note to investors. “How big this market actually is and whether or not new BlackBerry products will stimulate demand remains to be seen.”
For its part, RIM signaled confidence in its products and future.
“RIM achieved strong BlackBerry subscriber growth during the second quarter while steadily progressing the development and testing of new products and services with carrier partners around the world,” said Jim Balsillie, chairman and co-chief executive officer for RIM. “BlackBerry remains the leading platform in the wireless enterprise sector and we continue to feel confident in our competitive position and business plan looking forward.”
RIM’s subscriber base grew by about 48,000 to 403,000. The company’s net loss for the quarter was $14.3 million, which includes costs associated with patent litigation. The company said its lowered outlook for the next few months reflects the uncertainty of its carrier channels.
Over the next several months, RIM expects to launch BlackBerrys running on CDMA 1xRTT networks as well as Nextel Communications Inc.’s iDEN network.
