RIM soars on strong growth

Shares of Research In Motion Ltd. rocketed after the company broke the 10-million subscriber mark and issued a positive outlook for the rest of the year.
The BlackBerry maker reported second-quarter revenue of $1.37 billion, more than doubling revenue during the same period last year and up 27% from the previous quarter. RIM said it earned $287.7 million during the period, up from a net income of $140 million during the second quarter last year.
Hardware accounted for 78% of revenue during the quarter, while service generated 15% of revenue.
The company also said it added 1.45 million new subscribers and shipped more than 3 million devices during the period. RIM ended the quarter with 10.5 million subscribers, and projected third quarter revenues between $1.6 billion and $1.67 billion.
“RIM’s second quarter results were exceptionally strong on all metrics including revenue, subscriber account additions and net income,” said co-CEO Jim Balsillie. “With over 10 million BlackBerry subscriber accounts and over 20 million handsets shipped, we are pleased with our position in the market today and we expect recent product and market initiatives to extend our business momentum through the remainder of the fiscal year.”
Investors responded aggressively, sending shares up more than 11% to $112.06 following the news.