WATERLOO, Ontario-Research In Motion Ltd.’s earnings report beat expectations for its revenues and sales, causing several research firms to upgrade the company’s stock, but investors seemed hesitant as RIM’s shares dropped slightly in trading following the news.
RIM’s shares were down about 1 percent to about $22.46 per share in trading.
RIM reported first-quarter revenues of $104.5 million, up from the $87.5 million it scored in the previous quarter. The company’s net loss was $8.2 million, down from the $31.1 million net loss it recorded in the previous quarter. RIM added 81,000 new BlackBerry subscribers for a total of 615,000.
“We are raising our rating to Outperform (from Market Perform) due to the strong recent financial results, continuing BlackBerry momentum, improving visibility and increased forward guidance,” wrote BMO Nesbitt Burns in a research note.
“We are encouraged,” wrote Credit Suisse First Boston in a research note. “We believe that over time RIM could trade similar to software companies.”
