Research In Motion Ltd (BBRY) Shares Drop Almost 30% Due To Quarterly Losses
Research In Motion Ltd (NASDAQ:BBRY) shares are down almost 27% as of yesterday because the company reported an $84 million net loss for the first quarter. BlackBerry shares closed at $14.48 on the NASDAQ stock market on Thursday and dropped down almost 28% to $10.46 by the end of trading on Friday. It is also down 27% to $11.02 Canadian on the Toronto Stock Exchange. Over 40% of RIM’s shares are held by short sellers, which causes a lot of fluctuation.
The company’s quarterly loss came in at 16 cents per share. The $84 million net loss is narrower than the year before at $518 million. These are the first results that BlackBerry provided since the release of the Z10 and the Q10.
Around 6.8 million of RIM’s smartphones was shipped for Q1, which is an increase of 13% from the previous quarter. About 40% (2.7 million) of that figure was the newer models.
RIM has 72 million customers across the world, which fell by 4 million. RIM will no longer provide these figures in the future because they feel that it does not accurately reflect their reworked business model.
Sales for RIM increased to $3.07 billion, which is up from $2.81 billion one year ago. RIM indicated that the company’s figures are not showing any signs of improvement in the near term. BlackBerry is expected to book an operating loss in their second quarter earnings.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry