TORONTO-Research In Motion Ltd. reported a strong quarter with results in-line with the company’s projections, as well as increased sales of its BlackBerry wireless e-mail device.
The company’s stock remained relatively unchanged following the news, its stock trading about $13.70 per share.
RIM reported revenues in the third quarter of $74.2 million, up slightly from $73.4 million in the previous quarter. The company’s BlackBerry subscribers increased by about 60,000 to 463,000 total subscribers. The number of businesses using the BlackBerry Enterprise Server increased to over 8,500.
“During the last quarter, RIM made significant advances on a number of strategic fronts including product introductions, licensing agreements, and operational improvements,” said Jim Balsillie, the company’s chairman and co-chief executive officer. “We are especially pleased to report that the strong subscriber growth trend for BlackBerry is continuing, with 60,000 net subscriber additions in the quarter.”
Research firm BMO Nesbitt Burns slightly lowered its estimates for the company’s fourth quarter, adding that although carrier efforts to sell advanced BlackBerrys seem to be picking up there needs to be further evidence of sustained sales.
RIM’s loss in the third quarter widened dramatically from the same period a year ago because of a patent infringement dispute and a special charge related to a recent restructuring.
For the period ended Nov. 30, RIM posted a loss of US$92.3 million, or US$1.20 a share, compared with a loss of US$6.3 million or US$0.08 per share a year earlier.
Excluding the charges, RIM had a loss of $14.3 million or 19 cents. That was within the company’s internal range for a loss of 18 to 23 cents a share.
In the third quarter, RIM said it took a restructuring provision of $6.6 million linked to cuts announced last month. For the first time since it went public in 1997, RIM slashed 10 percent of its work force and cut its discretionary spending. It also recorded a provision of $27.8 million for damages and current legal costs with respect to a jury verdict in the patent dispute with NTP Inc.
