Wednesday, December 17th0.3°C
24563
23979

Call it in, RIM posts profit

Quarterly results at Research In Motion managed to beat the expectations of the market, but investors showed Thursday that they're still not convinced the BlackBerry maker's business model is going to be a smashing success.

After the third-quarter report was issued, RIM's shares surged more than eight per cent in after hours trading. But the stock began a dramatic retracement once executives laid out details of some service fees associated with the make-or-break launch next year of the BlackBerry 10 smartphones and operating system.

RIM shares (Nasdaq:RIMM) fell more than 10 per cent, or $1.41, to $12.71 as of 6:40 p.m. ET in New York.

The sticking point for investors appeared to be comments from chief executive Thorsten Heins which suggested the lucrative service fees charged to BlackBerry subscribers to use its secure network won't necessarily be a priority for the company anymore.

"We will be transforming our service revenue platform to reflect different usage levels of our network infrastructure, and different value-added software, security and service packages," he said.

RIM (TSX:RIM) plans to launch an a la carte menu of services where both enterprise customers and casual smartphone users can pick their packages, ranging from a "platinum package" that offers all of the security that BlackBerrys offer today, to a more stripped back offering that could focus less on security and more basic email services.

Heins said some smaller business, for example, are just looking for the basics rather than the encrypted technology that RIM has built its name on.

"Subscribers that require enhanced services ... are expected to continue to generate monthly service revenue," he said on the conference call.

"Other subscribers who do not utilize such services are expected to generate less or no service revenue."

Those comments about the future of RIM overshadowed an otherwise surprisingly stable third-quarter earnings report, which showed that the company was riding out the countdown to the BlackBerry 10 launch relatively well, especially considering it's currently selling products that are seen as ancient in the ever-changing technology world.

The company reported a $9-million profit, or two cents per share, for the three months ended Dec. 1, compared with a profit of $265 million or 51 cents per share a year ago.

Revenue totalled $2.73 billion, down from $5.17 billion.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14213.88+352.36
S&P CDNX659.00+16.65
DJIA17356.87288.00
Nasdaq4644.312+96.477
S&P 5002012.89+40.15
CDN Dollar0.8596+0.0008
Gold1194.40+0.10
Oil56.34-0.13
Lumber337.20+3.00
Natural Gas3.702-0.001

 
Okanagan Companies
Pacific Safety0.125+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.27+0.04
Cantex0.03-0.005
Anavex Life Sciences0.1659-0.0241
Metalex Ventures0.05-0.005
Russel Metals27.18+1.03
Copper Mountain Mining1.54+0.11
Colorado Resources0.105-0.005
ReliaBrand Inc0.0199+0.0065
Sunrise Resources Ltd0.055+0.005
Mission Ready Services0.22+0.02

 
24130




FEATURED Property
2140435680 Bluenose Rd.
10091074 bedrooms
$400,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Managing your sales team

Managing a sales team can be quite a challenge. Harnessing individual personality preferences and getting everyone focused on the same goals, moving at the same pace, and working in collaboration to d...


Working under the table

They say there are only two things that are certain in life: death and taxes. Not exactly an uplifting thought, but true nonetheless. Some people try to avoid paying tax by “working under the ta...


Housing prices to skyrocket?

As most of you know, this column was started with a focus on Okanagan real estate. Over time, more and more columnists started covering the real estate sphere and so it morphed in to a personal colum...

_



24476

24111


Member of BC Press Council