Research In Motion Ltd.’s revenues for the second quarter of fiscal year 2005 far exceeded year-ago quarterly revenues, according to the company’s financial results released late Thursday.
RIM’s revenues for the second quarter were $310.2 million, up 15 percent from $269.6 million recorded in the first quarter and up 147 percent from $125.7 million in the second quarter of 2004. Net income was $70.6 million, or 36 cents per share, up from $55 million, or 28 cents per share, last quarter.
“RIM is reporting another strong quarter, and we are pleased with our momentum as BlackBerry quickly approaches the 2-million subscriber mark,” said Jim Balsillie, RIM’s chairman and co-chief executive officer.
RIM said handhelds made up 71 percent of its revenues, service accounted for 18 percent, software licenses made up 8 percent and the remaining 3 percent was from other categories. The company added 317,000 BlackBerry subscribers in the quarter, bringing total BlackBerry subscribers to 1.657 million.
For the third quarter of FY 2005, RIM expects to record revenues between $340 million and $360 million, and earnings are expected to be between 40 cents and 44 cents per share. For the fourth quarter, RIM expects revenue to grow to $385 million to $410 million, with earnings between 45 cents and 50 cents per share.
“The current quarter is off to a good start with RIM and its partners executing well and continuing to expand the market opportunity within existing geographies,” said Balsillie. “We are also making steady progress in terms of geographic expansion and look forward to entering new markets, including China, in coming months.”
Friday morning, shares of RIM were trading down slightly at $75.54. Banc of America Securities reiterated its “neutral” rating on the stock and raised its target price from $66 to $75. It also raised 2005 and 2006 earnings per share estimates to $1.95 and $2.24, up from $1.75 and $2, respectively.
