WATERLOO, Ontario-Research In Motion Ltd. said it will take an additional provision of up to $8 million due to its patent battle with NTP Inc., bringing its provision cost to about $40 million.
RBC Capital Markets downgraded the company following the news. RIM’s stock was down slightly to around $12.40 per share.
“While legal disputes regarding patents are common for technology companies, we consider such disputes to be especially important for companies that license their technology, such as RIM,” said UBS Warburg in a research note. The firm is maintaining its Neutral 2 rating on the company.
