RIM Q2 Results Miss Expectations Due to Visto Case
By Simon Sage on Friday, September 25th, 2009 at 8:18 AM PST In Financial/Corporate News, RIM (Research in Motion)
Research in Motion posted their second quarter financial results yesterday, narrowly missing analyst expectations by about $0.17 per share. If it weren’t for the $112.8 million RIM owed Visto due to patent disputes, the BlackBerry (NSDQ: RIMM)-maker would have made off with $588.4 million in income, which would have reasonably in-line with forecasts. Here’s a quick run-down of the numbers.
- Revenue: $3.53 billion (+3% from $3.42 billion last quarter; +37% from $2.58 billion last year)
- Net income: $475.6 million, $0.83 per share (versus $643.0 million, $1.12 per share last quarter quarter; $495.5 million, $0.86 per share last year)
- 8.3 devices shipped, 3.8 million new subscribers, 32 million subscribers total
- Q3 expecations: $3.60-$3.85 billion revenue ($1.00-$1.08 per share); gross margin 43%; 4.0-4.3 million net additional subscribers.
There’s a fair bit of disappointment, and RIM’s lukewarm forecast for next quarter has spurred a stock sell-off (price is currently $70.49, down from $88.05 Wednesday afternoon), but many, like myself, remain hopeful in light of the upcoming additions to the Storm and Bold families. So, what are the analysts saying?
“Sales were a little weaker than I thought, though gross margins were pretty good, which is usually the issue with RIM. … I think the numbers were good, just weren’t as good as investors wanted to believe they were.” – Tavis McCourt, Morgan Keegan
“Even though it’s perfectly decent guidance with all kinds of great year-over-year growth and gross margins, it doesn’t live up to the advance billing. … [Analysts] set the bar pretty high. … When RIM came in with just a decent number, not a blow-out number, the stock sold off. Two weeks ago I think this would have been regarded as perfectly fine.” – Duncan Stewart, DSam Consulting
“We think the outlook for RIM in the [second half] looks challenging. … Their new product portfolio appears to offer little that is meaningfully different from existing products, while competitors will be launching numerous new phones.” – Brian Modoff, Deutsche Bank.
“It doesn’t appear that carriers are building up inventories and that’s hampering hardware shipments.” – Deepak Chopra, Genuity Capital
To keep tabs on RIM’s stock performance and that of others in the wireless world, be sure to scope out our Finance section.
[via RIM]
