Posted on 05/29/2012 7:39:13 PM PDT by MinorityRepublican
Research In Motion Ltd. RIMM +2.09% warned its business is deteriorating and will likely lose money for the second straight quarter, underscoring the uphill battle to turn around its flagging BlackBerry smartphone business.
The dire outlook comes as RIM scrambles to cut costs ahead of the rollout of its next BlackBerry expected this year. RIM is depending on this phone and a new mobile operating system to rescue the business, yet it still hasn't provided a date for the debut.
Analysts have been marking down their earnings estimate for the quarter for weeks, but most had still figured RIM would turn a small profit in the period. The company posted a $930 million profit in the year-earlier quarter, and it has maintained an annual profit since fiscal 2004.
RIM also said Tuesday it had hired outside advisers to help its board to figure out how to salvage—or possibly sell parts of—its business.
The company said it hired bankers at J.P. Morgan Securities and RBC Capital to assist in a previously announced strategic review of options. Representatives at RBC and J.P. Morgan declined to comment.
The banks are helping executives "evaluate the relative merits and feasibility of various financial strategies, including opportunities to leverage the BlackBerry platform through partnerships, licensing opportunities and strategic business model alternatives," said Chief Executive Thorsten Heins in a statement.
(Excerpt) Read more at online.wsj.com ...
My old curve was traded in for an iPhone. Love my iPhone. How much I like it has kinda blown me away.
The irony here is that RIMM is not the only company about to hit the skids. All of the facades of companies “doing well” are about to come falling down.
RIM will lose another customer (Mrs. Bustard) in August ... probably to Samsung. They lost me two years ago.
I am getting rid of my blackberry in September when i am due for an upgrade.
They took what used to be a reliable good phone and turned it into a mess of bugs, lockups, etc.
Using the internet on the phone is BRUTAL. Seriously brutal.
I applied for a job at Research In Motion, but on the way to the interview, I turned the car around.
I realized I did NOT want a R.I.M. jo.... no, I better not.
Don’t knock it until you try it. It all depends on who is doing the “hiring”.
“You can not beat BB’s QWERTY keyboard!”
BUMP.
My wife has a Droid, kids have IPhones; I wouldn’t trade my BB Bold for all of them.
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