BlackBerry maker Research in Motion has reported first-quarter earnings that were even worse than analysts’ lowered expectations, resulting in the company lowering its outlook and plummeting shares.
RIM is not only dealing with increased demand and production delays, but it plans to cut an unspecified number of jobs, the company said in a statement.
RIM reported profit of $695m, or $1.33 per share, for the three months that ended 28 May, compared with $769m, or $1.38 per share, in the same period last year. For the current quarter, it forecast earnings of 75 cents to $1.05 per share, less than analyst expectations of $1.36 per share.
The smartphone maker also lowered its annual earnings outlook to a range of $5.25 to $6 per share, down from an April forecast of $7.50 per share.
"The slowdown we saw in the first quarter is continuing into Q2, and delays in new product introductions into the very late part of August is leading to a lower than expected outlook in the second quarter," said Jim Balsillie, RIM’s co-chief executive officer, said in the statement.
RIM shares fell nearly 15pc to $30.13 in after-hours trading Thursday.
Photo: Jim Balsillie, RIM’s co-chief executive officer