Technology 16 Sep 2011 09:03 am

RIM Takes Earnings Hit

by Sean Hackbarth

BlackBerry smartphones
Disappointing sales (only 200,000) of the PlayBook and tough competition with Android phones in the consumer market resulted in lower than expect earnings for RIM:

RIM said Thursday that its net income was $419 million, or 80 cents per share, in the three months ended Aug. 27. That’s down from $796.7 million, or $1.46 per share, a year ago. Analysts expected 90 cents per share, according to a survey by FactSet.

The company, based in Waterloo, Ontario, said revenue fell 15 percent to $4.2 billion.

Shares hit a fresh new five-year low, falling $5.74, or 19.4 percent, to $23.80 in after-hours trading. RIM’s stock has lost more than half its value this year.

“Phone Rivalry Drives Down RIM Earnings

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