For any RIMM shareholders expecting a miraculous deus ex, somewhat like Europe's broker beggars who still are choosers, to come out of left field in today's earnings reports, there was nothing but epic disappointment.
- Revenues came in at $2.81 billion on expectations of $3.1 billion, and down from $4.91 billion a year prior
- EPS were $(0.37) on expectations of just a 7 cent miss.
- The outlook is just as horrible, with RIMM announcing it expects a Q2 operating loss
- It also see lower shipment volumes, and delayed the launch of Blackberry 10 to Q1 2013
- Finally, the firm will cut 5,000 jobs
If the stock isn't moving much it is because it has been halted since pre announcement. It will reopen at 4:40pm, probably between 10 and 20% lower.
From the Outlook section in the press release:
The Company expects the next several quarters to continue to be very challenging for its business based on the increasing competitive environment, lower handset volumes, potential financial and other impacts from the delay of BlackBerry 10, pressure to reduce RIM's monthly infrastructure access fees, and the Company's plans to continue to aggressively drive sales of BlackBerry 7 handheld devices. The Company expects to report an operating loss in the second quarter of fiscal 2013, as RIM continues to invest in marketing programs and continues to work through the transition to BlackBerry 10, as well as the Company's fixed costs being allocated over a lower volume of shipments. This outlook excludes the impact of charges related to the CORE Program.
We do use the term outlook loosely: at this point we are not sure whose odds of being a viable going concern in 2013 are higher: Greece or the once proud Canadian corporate fixture.
We will post an after hours chart as soon as the stock is unhalted.
RIMM just opened at $7.5 from its $9 after-hours close before the halt - a mere 17% drop.