Research In Motion may have some good news for a change, as their second quarter results beat analyst expectations.
After the markets closed on Thursday, RIM unveiled its numbers and surprised some shareholders with revenue of $2.9 billion – that’s up two percent from the previous quarter. Its net loss was still 45 cents per share, which includes costs associated with its restructuring scheme. After restructuring costs, net loss was reported at an adjusted rate of 27 cents a share. All told, the Waterloo company reported a loss of $142 million over the last year.
Analysts were apparently expecting revenue in the $2.5 billion range, with a net loss of 70 cents per share – 47 cents per share after adjustments.
“It’s still bad, but it’s a much smaller disaster than expected,” said Sterne Agee analyst Shaw Wu. “These stocks all trade on expectations. Expectations were really low, and they were able to beat that.”
With those low expectations defeated, RIM shares rose 15 percent during after-hours trading.
“Make no mistake about it, we understand that we have much more work to do, but we are making the organizational changes to drive improvements across the company, our employees are committed and motivated, and BlackBerry 10 is on track to launch in the first calendar quarter of 2013,” Heins said in the company’s earnings release.
RIM still expects to post a third quarter loss, mind you, and should see continuous pressure throughout the next few months at the very least. The company hasn’t done anything to dig out of the hole it finds itself in, but at least it appears to have mitigated the disaster somewhat. This has to be a “good” sign.
The announcement that RIM added two million to its subscriber base in the quarter to land at an even 80 million is also a good sign, with shipments of 7.4 million smartphones and 130,000 PlayBooks in the quarter adding to the pile.
RIM still has to figure out a way to take on the competition, however, and an awful lot is riding on the BlackBerry 10 product line. Many will look to condemn the products before they’re even released and the company’s recent rash of failures will be hard to get over from a public relations standpoint, but this slight “upturn” in fortunes may provide the necessary motivation to push on.