RIM suffers another financial setback
RIM revenues: a downward spiral
Research In Motion (RIM) has announced its Q1 results, which show that the BlackBerry manufacturer has suffered a significant loss in revenue.
While it has been predicted that RIM would face a setback, the drop in revenue is worse than expected. FactSet analyst polls predicted that there would be a fall of 3 cents (£0.02) per share. However, recent figures show that losses in fact stood at 37 cents (£0.24) per share. Due to the plummet, RIM is now valued at under $5bn (£3.2bn), significantly less than the $144bn (£92.22bn) from June 2008.
The RIM Q1 results also highlight the severe drop in revenue RIM has suffered. Year on year, this figure has fallen by 43 percent to $2.8bn (£1.79bn). BlackBerry sales have also taken a hit as only 7.8m units were shipped, much less than the 13.2m sold the previous year.
A number of analysts have spoken out about the decline in revenues. Matthew Thornton, senior analyst at Avian Securities, has said: “It’s like watching a puppy die. It’s terrible.”
Even more bad news
Alongside its dramatic deterioration in revenue, RIM has announced that it will be cutting 5,000 jobs as a direct result of its heavy financial loss.
The company has also been forced to delay its BlackBerry 10, which will be released early 2013 rather than during the Christmas period. Natalie Booth, assistant marketing manager at theEword, said: “The BlackBerry 10 could have acted as a small saving grace for RIM, drumming up interest and sales. However, setting back the release date means that the company will miss out on precious Christmas sales, while the delays could also dampen consumer interest.”