Latest IT News » Business It News » RIM announces drop in profits and announcing layoffs

RIM announces drop in profits and announcing layoffs

RIM has in the fiscal first quarter 500 000 Playbooks and sold 13.2 million BlackBerrys. (Photo: Josh P. Miller, News.com) Research In Motion (RIM) has a balance sheet (PDF) for the first fiscal quarter 2012 (until 28 May) presented. Compared with the previous quarter, net profits of Canadian mobile phone manufacturer shrank by 10 percent to 695 million dollars (490 million euros). The operational costs but increased by 45 percent to 1.26 billion dollars (890 million euros). RIM wants to reduce as a result from the second quarter of its workforce.

Revenues climbed from March to May by 16 percent to 4.9 billion dollars (3.5 billion euros). Compared to the previous quarter, however, RIM took 12 percent less. Moreover, there is the $ 4.9 billion and well below its own forecast from 5.2 to 5.6 billion dollars that RIM had lowered the end of April due to low sales numbers already. RIM’s total set in the first fiscal quarter and 13.2 million BlackBerrys 500,000 Playbook Tablets from.

“The fiscal year begins in 2012 with a challenge. The gradual decline that we saw in the first quarter, continues in the second quarter,” said one of the two CEOs, Jim Balsillie. The introduction of new products is delayed until the end of August, which is why the predictions were lower for the second fiscal quarter than expected.

“RIM’s business is profitable and remain in the face of growing market share in many countries around the world sound,” added Balsillie. The balance of his company, from a cash of nearly $ 3 billion. “We believe we are the new products we will introduce in coming months, and an updated cost structure in the latter part of fiscal year 2012 to achieve high profits.”

The planned layoffs are to affect positive according to the company from the third quarter on the balance sheet. RIM but did not mention the number of employees who will receive a termination.

In the current second fiscal quarter, RIM expects revenue from 4.2 to 4.8 billion dollars. The Blackberry sales will be between 11 and 12.5 million units. The profit forecast for fiscal 2012, RIM also corrected downwards. It is now 5.25 to 6 dollars per share. Possible one-time charges and stock buybacks are not included.

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