RIM CEOs take $1/year salary, BlackBerry 10 phones not due until late 2012, 71% YoY drop in net income

playbook-down

RIM announced their quarterly results tonight, and the big bombshell is that the two CEOs, Jim Balsillie and Mike Lazaridis will be swapping out their standard salary for just $1 each year. This isn’t entirely uncommon in the business world, but is a show of good faith to critical investors who have been calling for a change in leadership. The two are obviously huge stakeholders in the company, and this is a reasonable compromise, but it’s also clear that the two aren’t going to be kicked out of the company. Here’s a quick summary of the broad strokes from fiscal Q2 2012.

  • Revenue of $5.2 billion, up 24% from last quarter
  • BlackBerry smartphone shipments of 14.1 million, up 33% from Q2
  • GAAP net income of $265 million or $0.51 per share diluted; adjusted net income of $667 million or $1.27 per share diluted
  • Subscribers up 35% year-over-year to almost 75 million
  • Cash flow from operations of approximately $895 million
  • Total of cash, cash equivalents, short-term and long-term investments of $1.5 billion
  • BlackBerry smartphone shipments are expected to be between 11 million and 12 million units in Q4

RIM spent a lot of the call admitting that OS 7 launches didn’t go as well as they wanted, but they’re still optimistic. RIM isn’t satisfied with their performance in the U.S., and they intend on cranking out tons of advertising and promotions in the area, but they’ve seen 56% growth internationally. Net income sits at $265 million for the quarter, versus $911 million the year prior at the same time, which is a 71% drop no doubt thanks to their mark-down of PlayBook value. Another big disappointment is that we won’t see BlackBerry 10 devices, like the Milan, until late 2012 due to availability of a particularly battery-efficient dual-core processor that could handle LTE. That wait alone may kill RIM. At least they’re in the black for the time being, eh?

You can take a closer look at RIM’s financials over here.

Back to top ▴