RIM Taking $485 Million Charge Related To Unsold Tablets
Research In Motion (NASDAQ:RIMM) will be taking a $485 million noncash charge in the fiscal third quarter after making down the value of their large PlayBook tablet inventory. RIM also needed to lower their project for earnings and revenue for the rest of the year. BlackBerry shipments are expected to fall in this quarter.
The PlayBook tablet launched out of the gate without poor reviews, especially due to the lack of e-mail and BBM services. RIM remains profitable and has a large cash pile. The good news for the company is that RIM shipped more phones for the quarter ending November than the previous quarter. RIM warned that less BlackBerry devices will be shipped in the fiscal fourth quarter.
RIM shipped 500,000 tablets in the first quarter of availability and then another 250,000 in the following quarter. RIM said today that they have shipped 150,000 PlayBooks in the third quarter.
“RIM is committed to the BlackBerry PlayBook,” said the company in a statement. RIM sold 14.1 million BlackBerrys in the third quarter. RIM’s said that its adjusted revenue in the quarter would fall slightly short of its previous guidance of $5.3 to $5.6 billion.@amitchowdhry or on Google+ at +AmitChowdhry