RIM warns of Q1 operating loss, hires JP Morgan and RBC for strategic review

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RIM issued a press release that confirmed analysts’ worst fears – RIM will post an operating loss and fall well short of Wall Street estimates in Q1 2012. The Canadian company blamed its poor performance on “the on-going competitive environment.”

The handset maker also said it has hired JP Morgan Securities LLC and RBC Capital Markets for a strategic review of its financial situation. RIM said it will “evaluate the relative merits and feasibility of various financial strategies, including opportunities to leverage the BlackBerry platform through partnerships, licensing opportunities and strategic business model alternatives.”  A possible outcome of this move is a major restructuring (read:layoffs) or a sale of the company’s assets.

When it announced this news, RIM halted trading of its stock. Trading resumed after hours and the stock has dropped 13 percent as of the writing of this post.

[Via RIM]

  • http://www.mygossip565.com/ JasonSantoro

    Hopefully they can turn things around.  I love my BlackBerry and would hate to have to get an iphone or Android. 

  • http://www.facebook.com/people/Min-Zhu/100003101682617 Min Zhu

    RIM has strange culture and self distruct political environment.
     
    In RIM if a new hired person figure out major problem and introduce efficient approach, both manager and his buddy group member will proof their wrong approach works. just like someone point out driving a car is right way, pushing a car is wrong way, then both manager and his buddy group member will hate you, and proof that 3 person can also move the car by pushing it. cheating email will be sent to some vice president, saying like: see, the car moving, pushing a car is a natural part of the process, in order to deny new hired contribution of introducing skill of drive a car, they have to deny merit of driving a car.
     
    It is very strange company culture and strange company political environment, it promote stealing and cheating skill. RIM’s management may be a typical instance in MBA course.
     
    This culture deny or steal hardworking team members’ contribution/innovation, generate strange political environment, destroy RIM.

  • http://www.facebook.com/people/Min-Zhu/100003101682617 Min Zhu

    RIM has strange culture and self distruct political environment.
     
    In RIM if a new hired person figure out major problem and introduce efficient approach, both manager and his buddy group member will proof their wrong approach works. just like someone point out driving a car is right way, pushing a car is wrong way, then both manager and his buddy group member will hate you, and proof that 3 person can also move the car by pushing it. cheating email will be sent to some vice president, saying like: see, the car moving, pushing a car is a natural part of the process, in order to deny new hired contribution of introducing skill of drive a car, they have to deny merit of driving a car.
     
    It is very strange company culture and strange company political environment, it promote stealing and cheating skill. RIM’s management may be a typical instance in MBA course.
     
    This culture deny or steal hardworking team members’ contribution/innovation, generate strange political environment, destroy RIM.

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