RIM experiences US$125m net loss in fourth quarter

30 Mar 2012

Former co-CEO of RIM Jim Balsillie

RIM’s revenue for the fiscal fourth quarter was US$4.2bn, down 19pc since the previous quarter with a US$125m net loss. Former co-CEO of RIM Jim Balsillie has resigned as director of the company’s board.

RIM’s revenue was down 19pc from the third quarter and down 25pc from US$5.6bn from the same quarter in the previous year. Its net loss for the quarter was US$125m before adjustments.

Sixty-eight per cent of revenue was made up of hardware, 27pc was made up for service and 5pc was software and other revenue. RIM shipped 11.1m BlackBerry phones and more than 500,000 BlackBerry Playbook tablets in the quarter.

The company expects ‘continued pressure’ on revenue and earnings throughout the next fiscal year. It said it will no longer provide public projections on what it plans to make from phones sales from future quarters due to weak smartphone sales, increased pressure in international markets and an increased focus to grow BlackBerry 7’s subscriber base.

Thorsten Heins, president and CEO of RIM, said that while the company has “substantial threats”, it still faces a number of significant challenges over the next several quarters.

He said the company will drive “greater operation performance” with increased management accountability and process discipline. He said RIM was reviewing strategies, such as joint ventures and licensing. He also said its new OS BlackBerry 10 was still on track for the end of 2012.

RIM also announced that Balsillie, former co-CEO of the company, has resigned as director of RIM’s board.

“As I complete my retirement from RIM, I’m grateful for this remarkable experience and for the opportunity to have worked with outstanding professionals who helped turn a Canadian idea into a global success,” said Balsillie.