RIM’s Profits Are Down 71% In Q3 Due To PlayBook
Research In Motion Limited (TSE:RIM) has announced their third quarter earnings earlier today. RIM reported $265 million in earnings, which is 51 cents per share for the quarter. This is down 71% from $911 million during the same quarter a year ago. The reason for the drop is because of the $485 million hit RIM took due to unsold PlayBook tablets.
There is also a $54 million charge the company took when they had a worldwide outage this past fall. RIM’s overall revenue is down only 6% at $5.17 billion from $5.5 billion last year. About 14.1 million BlackBerry smartphones and about 150,000 PlayBooks were shipped in the quarter. RIM said that they plan on shipping about 11 and 12 million more smartphones in the next 3 months.
[Barrons]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry