BlackBerry maker Research in Motion (RIMM) this afternoon reported fiscal Q1 revenue below analysts’ estimates, but profit a penny ahead, and a Q2 revenue forecast well below estimates, and cut its year outlook.
The company will pursue cost reductions, including laying off workers, and will buy back shares, it said.
Revenue in the three months ended in May rose 16%, year over year, and fell 12%, quarter to quarter, to $4.91 billion, yielding EPS of $1.33.
Analysts had been modeling $5.15 billion in revenue and $1.32 in EPS.
Co-CEO Jim Balsillie remarked, “Fiscal 2012 has gotten off to a challenging start. 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.”
He added, “RIM will see strong profit growth in the latter part of fiscal 2012.”
The Q1 results were consistent with RIM’s updated forecast, provided April 28th, of revenue slightly below $5.2 billion, and EPS in a range of $1.30 to $1.37.
However, unit sales of 13.2 million were below even the company’s reduced forecast for 13.5 million to 14.5 million units.
Gross profit of 44% was slightly better than the company expected, it said, based on a better mix of devices sold.
One bright spot: RIM shipped 500,000 units of its PlayBook tablet computer in the quarter, it said. That estimate was higher than general expectations on the Street for 400,000 or so units. (Barron's)
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