16 December 2011 | Author: R Wood Media Intern
BlackBerry makers Research In Motion has released its third quarter fiscal numbers, revealing a 6 per cent slump in profits compared with the same period last year.
The flagging company reported profits of $265 million (£170 million) - compared with $911 million (£586 million) a year earlier.
According to CNET, prior to the Q3 results the company warned it would miss expectations this year.
A series of PR fails and botched product launches - most notably the BBM crash in October and the poorly-selling PlayBook - has caused investors to lose confidence in the company and push for a management shakeup.
In the last year, RIM's stock lost more than three-quarters of its market value as the company's flagship product - the BlackBerry - struggled to keep up with market competitors.
Still, in spite of a difficult year and weak Q3 results, RIM co-CEOs Jim Balsillie and Mike Lazaridis remain optimistic.
"Despite all the challenges faced in the third quarter, the BlackBerry subscriber base grew to almost 75 million customers around the world," the two said in a press release.
"As part of our commitment to improving our performance to better meet the expectations of shareholders and customers, we continue to evaluate ways to improve in several areas of the Company's operations."
However, following the announcement that the next generation phones - the BlackBerry 10 - won't be out until the latter half of 2012, RIM may well find user patience is wearing thin.
"It may take some time to realize the benefits of these efforts and the platform transition that we are undertaking, but we continue to believe that RIM has the right set of strengths and capabilities to maintain a leading role in the mobile communications industry," RIM said.
BlackBerry profits slump
BlackBerry makers Research In Motion has released its third quarter fiscal numbers, revealing a 6 per cent slump in profits compared with the same period last year. The flagging company reported profits of $265 million (£170 million) - compared with $911 million (£586 million) a year earlier.
According to CNET, prior to the Q3 results the company warned it would miss expectations this year.
A series of PR fails and botched product launches - most notably the BBM crash in October and the poorly-selling PlayBook - has caused investors to lose confidence in the company and push for a management shakeup.
In the last year, RIM's stock lost more than three-quarters of its market value as the company's flagship product - the BlackBerry - struggled to keep up with market competitors.
Still, in spite of a difficult year and weak Q3 results, RIM co-CEOs Jim Balsillie and Mike Lazaridis remain optimistic.
"Despite all the challenges faced in the third quarter, the BlackBerry subscriber base grew to almost 75 million customers around the world," the two said in a press release.
"As part of our commitment to improving our performance to better meet the expectations of shareholders and customers, we continue to evaluate ways to improve in several areas of the Company's operations."
However, following the announcement that the next generation phones - the BlackBerry 10 - won't be out until the latter half of 2012, RIM may well find user patience is wearing thin.
"It may take some time to realize the benefits of these efforts and the platform transition that we are undertaking, but we continue to believe that RIM has the right set of strengths and capabilities to maintain a leading role in the mobile communications industry," RIM said.
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