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RIMM Earnings Out

Tyler Durden's picture





 

And the numbers are out:

  • RESEARCH IN MOTION 4Q REV. $4.19B, EST. $4.51B
  • RESEARCH IN MOTION 4Q ADJ. EPS 80C, EST. 81C

Terminations:

  • RESEARCH IN MOTION SAYS BALSILLIE RESIGNS FROM BOARD
  • RESEARCH IN MOTION SAYS JIM ROWAN TO LEAVE

No more guidance:

  • RIMM WONT' GIVE QUANTIVE VIEWS DUE TO LONG TERM FOCUS

But here is what the market will focus on:

  • RESEARCH IN MOTION REVIEWING STRATEGIC OPPORTUNITIES

Key excerpts from release:

WATERLOO, ONTARIO--(Marketwire -03/29/12)- Research In Motion Limited (RIM) (NASDAQ: RIMM - News)(TSX: RIM.TO - News), a world leader in the mobile communications market, today reported fourth quarter results for the three months and fiscal year ended March 3, 2012 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Highlights:

--  $2.1 billion in cash, cash equivalents, short-term and long-term investments at the end of the quarter, which increased by approximately $610 million in the quarter
--  Cash flow from operations of approximately $1.1 billion, up from approximately $900 million in Q3
--  Revenue of $4.2 billion, down 19% from the third quarter
--  GAAP net loss in Q4 of $125 million or $0.24 per share diluted; adjusted net income of $418 million or $0.80 per share diluted
--  BlackBerry smartphone shipments of 11.1 million in Q4, down 21% from Q3
--  RIM to discontinue providing specific quantitative guidance
--  RIM provides update on organizational changes

Q4 Results:

Revenue for the fourth quarter of fiscal 2012 was $4.2 billion, down 19% from $5.2 billion in the previous quarter and down 25% from $5.6 billion in the same quarter of fiscal 2011. The revenue breakdown for the quarter was approximately 68% for hardware, 27% for service and 5% for software and other revenue. During the quarter, RIM shipped approximately 11.1 million BlackBerry smartphones and over 500,000 BlackBerry PlayBook tablets.

"I have assessed many aspects of RIM's business during my first 10 weeks as CEO. I have confirmed that the Company has substantial strengths that can be further leveraged to improve our financial performance, including RIM's global network infrastructure, a strong enterprise offering and a large and growing base of more than 77 million subscribers. I'm very excited about the prospects for the BlackBerry 10 platform, which is on track for the latter part of calendar 2012. Notwithstanding these strengths and opportunities, the business challenges we face over the next several quarters are significant and I am taking the necessary steps to address them," said Thorsten Heins, President & CEO of Research In Motion. "In addition to delivering the BlackBerry 10 platform and refocusing resources on RIM's key opportunities, such as BlackBerry Mobile Fusion and new integrated service offerings, we will also drive greater operational performance through a variety of initiatives including increased management accountability and process discipline. In parallel, we are undertaking a comprehensive review of strategic opportunities including partnerships and joint ventures, licensing, and other ways to leverage RIM's assets and maximize value for our stakeholders."

The Company's GAAP net loss for the fourth quarter of fiscal 2012 was $125 million, or $0.24 per share diluted, compared with GAAP net income of $265 million, or $0.51 per share diluted, in the prior quarter and GAAP net income of $934 million, or $1.78 per share diluted, in the same quarter of fiscal 2011. Adjusted net income for the fourth quarter was $418 million, or $0.80 per share diluted. Adjusted net income and adjusted diluted earnings per share for the fourth quarter exclude the impact of pre-tax charges of $355 million which are predominantly non-cash ($346 million after tax) for the impairment of goodwill and $267 million ($197 million after-tax) for an inventory provision taken primarily on certain BlackBerry7 products. These charges and their related impacts on GAAP net income and diluted earnings per share are summarized in the tables below.

Change to Guidance Practices and Outlook:

The company expects continued pressure on revenue and earnings throughout fiscal 2013. Due to a desire to focus on long term value creation and the current business environment, RIM will no longer provide specific quantitative guidance. Some of the factors contributing to this include, ongoing weakness in the Company's U.S. smartphone business, an increased focus on selling BlackBerry 7 smartphones to grow the subscriber base in advance of the BlackBerry 10 launch, increasing competitive pressure in the Company's international markets and the introduction of certain new lower tier service pricing initiatives and a higher mix of sales coming from entry level products.

Organizational and Board of Directors Update:

Jim Balsillie, former Co-CEO of the Company, has resigned as a Director on the Company's Board.

"As I complete my retirement from RIM, I'm grateful for this remarkable experience and for the opportunity to have worked with outstanding professionals who helped turn a Canadian idea into a global success," said Jim Balsillie.

"On behalf of the Board and everyone at RIM, I would like to thank Jim for his 20 years of service to RIM," said Barb Stymiest, Chair of RIM's Board of Directors. "His energy, drive and enthusiasm helped build one of the most successful technology companies of our time."

In addition, David Yach will be retiring from his role as CTO, Software after 13 years with the Company and after 4 years with the company and following an open dialogue on the future of global operations, Jim Rowan, COO, Global Operations, has decided to pursue other interests. The Company is currently undertaking a search to hire a single COO with responsibilities to run the Company's operations.

"RIM would like to thank David Yach and Jim Rowan for their years of service and many contributions to RIM," said Thorsten Heins, President and CEO. "We wish them well in their future pursuits."

 

Stock is currently halted and will resume trading at 5:10 pm

Stock resumes trading at around $12.60


 


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Thu, 03/29/2012 - 16:49 | Link to Comment DormRoom
DormRoom's picture

Blackberry is the new Palm

Thu, 03/29/2012 - 16:59 | Link to Comment Ruffcut
Ruffcut's picture

where is hp when you need them.

oh, swirling the same bowl.

it is allowable to fail, just so you are not a bank.

Oh rim, where art thou??

Thu, 03/29/2012 - 17:07 | Link to Comment Cadavre
Cadavre's picture

The 'old' Palm is jealous.

`Minds of that old PBS series call "Max". Fuzzy but thinking that "Max", a computer, and his perky 'user' would solve gargantuan problems, like how big a box should be, with simple algebra (is the 'al' in 'algebra' a banned syllable yet?). Anyway, in one segment, the "Max" was asking his 'user' for dating advice regarding the sexy fridge in his user's kitchen.

Remember when RHT was under 20?

Draft legislation proposed to make it illegal to distribute port watching software. Makes sense sice anyone not a member of the white shoe boys' club is pretty much a threat anyway and every desktop is probably a terror communications center. Get a license now, or roll your own later,

Thu, 03/29/2012 - 17:10 | Link to Comment maxmad
maxmad's picture

wait for it.... wait for it..... Looks like a RIMM shot!  BOOM!

Thu, 03/29/2012 - 17:13 | Link to Comment maxmad
maxmad's picture

12.55!  Bitchez!!!!

Thu, 03/29/2012 - 20:52 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

RIMMMMMMMMMMMBER!

Thu, 03/29/2012 - 17:14 | Link to Comment Cursive
Cursive's picture

@DormRomm

BlackBerry is the new Yahoo!, as in, "Help us, big daddy Microsoft?"

Thu, 03/29/2012 - 16:49 | Link to Comment lizzy36
lizzy36's picture

BBerry sales down 21% from last quarter.

No guidance bc of continued weakness.

Pretty sure unless bernanke is buying bberry handsets as part of QE3 - #BTFD might NOT be the best strategy here.

Thu, 03/29/2012 - 17:44 | Link to Comment Cadavre
Cadavre's picture

Pretty sure unless bernanke is buying bberry handsets as part of QE3

Saw banners the FED was planning to convert about 7 billion of assets (or reserves in FED lingo) . then spent 30 hours guuging for a factory or farm or widget cottage or anything that was remotely associated with 'tangible' production owned by the FED - couldt find narry a none - so wondering on - how did the FED manage to acquire something it could sell if it never ever produced a f-ing thing?

It must be dat ole intangible asset rehypothocation white shoe gypsy boys' voodoo magic.

it put a spell on you everytime and dats for sure/

 

 

 

Thu, 03/29/2012 - 16:49 | Link to Comment CvlDobd
CvlDobd's picture

The unhalt should be fun.

Thu, 03/29/2012 - 17:13 | Link to Comment blu
blu's picture

magic 8-ball sez: gravity

update: insanity reigns. 1M shares in 30 seconds. seriously down. and bitchez are all over BTFD ...

Thu, 03/29/2012 - 16:51 | Link to Comment Lady Heather...UNCLE
Lady Heather...UNCLE's picture

...a situation stock a la Motorola?  BTFD!!!!

Thu, 03/29/2012 - 16:57 | Link to Comment DormRoom
DormRoom's picture

Google bought motorola mobility for the patents. In particular the near field communication patents.  Not too sure, how valuable, or desirable RIMM's patents are in silicon valley.

Thu, 03/29/2012 - 17:01 | Link to Comment Ruffcut
Ruffcut's picture

Dip? I'm wondering what a dead cat flop looks like.

Thu, 03/29/2012 - 16:51 | Link to Comment junkyardjack
junkyardjack's picture

RIMM's future revenue guidance..."Zero point Zero"

Thu, 03/29/2012 - 16:54 | Link to Comment mayhem_korner
Thu, 03/29/2012 - 17:05 | Link to Comment Ruffcut
Ruffcut's picture

there are negative numbers you know.  But at least the stock price can only zero out.

I will make a stupid prediction. Rimm will bottom at 7-8 a share and will be absorbed by some other blob and gutted.

Thu, 03/29/2012 - 17:07 | Link to Comment junkyardjack
junkyardjack's picture

I wouldn't put it past RIMM to achieve negative revenue

Thu, 03/29/2012 - 16:53 | Link to Comment mayhem_korner
mayhem_korner's picture

RIM to discontinue providing specific quantitative guidance

 

Death knell.

Farewell and adieu to you dear Spanish ladies.  Farewell and adieu dear ladies of Spain...

(Quint, Jaws)

Thu, 03/29/2012 - 17:07 | Link to Comment LouisDega
LouisDega's picture

What, No RImmmmmberrrrrrr?? 

Thu, 03/29/2012 - 16:54 | Link to Comment Bill D. Cat
Bill D. Cat's picture

Looking for partners . Heh .

Thu, 03/29/2012 - 16:58 | Link to Comment Ruffcut
Ruffcut's picture

isn't everybody? 

one night only here, bitchnessezz

Thu, 03/29/2012 - 17:00 | Link to Comment EscapeKey
EscapeKey's picture

Sheesh, it was only a few years ago, RIM were the Wall St darlings.

How quickly they've managed to piss away their advantage.

Although I will say their OS is pretty damn good, and the Playbook is probably one of the best tablets out there for the price.

Thu, 03/29/2012 - 17:17 | Link to Comment Cursive
Cursive's picture

@EscapeKey

I realy liked the Playbook and the QNX OS, but I had to return it. That damn power buttton was the deal breaker for me.

Thu, 03/29/2012 - 17:02 | Link to Comment Dr. No
Dr. No's picture

*sigh* seems like yesterday RIMM was a $100 stock....I looked at the chart and could beleive my eyes its $14.

Thu, 03/29/2012 - 17:08 | Link to Comment SheepDog-One
SheepDog-One's picture

$148 at the peak of RIMM's hype.

Thu, 03/29/2012 - 20:55 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Crapples fate awaits..........

Thu, 03/29/2012 - 17:08 | Link to Comment SheepDog-One
SheepDog-One's picture

AH yes RIMM....once the CNBC darling to the point CNBC anchors like Erin Burnett would 'oopsie' on cam and let her BB ring and buzz for a $5 stock pop...funny to think RIMM was only recently a Wall St darling like Apple. Just say the Name 'Baldsilly' and all the anchors would swoon.

Thu, 03/29/2012 - 17:08 | Link to Comment Ruffcut
Ruffcut's picture

Still halted. Fuck I gotta make din din. I did not buy in this time. Premiums on ops were to much. I might regret it, like I usuallly do.

A toast of cold beer to my friends of the hedge aannnddd goodnight.

Thu, 03/29/2012 - 17:08 | Link to Comment Seasmoke
Seasmoke's picture

RIMM Job

Thu, 03/29/2012 - 17:08 | Link to Comment Stax Edwards
Stax Edwards's picture

2 min and counting...

Thu, 03/29/2012 - 17:13 | Link to Comment Stax Edwards
Stax Edwards's picture

And express elevator service resumes!

Thu, 03/29/2012 - 17:09 | Link to Comment SheepDog-One
SheepDog-One's picture

But this is probably bullish overal for stocks Im sure. Or something.

Thu, 03/29/2012 - 17:09 | Link to Comment Bill D. Cat
Bill D. Cat's picture

The Nortel business model .

Thu, 03/29/2012 - 17:13 | Link to Comment tallen
tallen's picture

Looks like those investors are getting RIMMed

Thu, 03/29/2012 - 17:15 | Link to Comment navy62802
navy62802's picture

10% miss. Ouch.

Thu, 03/29/2012 - 17:37 | Link to Comment adr
adr's picture

I was contacted by a head hunter regarding a design job at RIM. I was seriously interested but I knew the direction the comapny was going, and I'm not relocating my family to Canada only to lose the job a few months later.

I asked the headhunter, "Is RIM serious about turning the company around and willing to throw everything out the window. Start fresh with a new design perspective? I have great ideas and could help the company but they need to be willing to listen and I won't take orders from some executive with a MBA who thinks he understands product."

The headhunter just said, "I don't know. I was asked to find qualified candidates for the the job."

RIM flew high when email on a phone was a hard thing to get. The problem with RIM is their email system and the extra charges that come with it. Now that you can buy 100 smart phones with advanced web and email capability, there is no need for a Blackberry. RIM also kept the trackball interface too long and failed to capitalize on larger touch screens.

Since I didn't take the job, I'll still give RIM some free advice. Ditch your system and go Android. People still like Blackberry and the brand, but your OS is dead. Market well designed phones with pysical keyboards and you will sell millions of phones. Samsung, LG and the rest are focusing on thin touchscreen only phones and turing their back on power users and corporate users that still want a physical keyboard. I won't purchase a smartphone without a keyboard. I won't give up the screen estate for the on screen keyboard and corporate emails are too lengthy to use a touchscreen.

Thu, 03/29/2012 - 17:43 | Link to Comment i love cholas
i love cholas's picture

com'on man, cut the bullshit. you were not contacted by a head hunter

Thu, 03/29/2012 - 17:45 | Link to Comment The Alarmist
The Alarmist's picture

Talk about gettin RIMMed.

Thu, 03/29/2012 - 18:02 | Link to Comment navy62802
navy62802's picture

I thought getting rimmed was supposed to be a pleasurable experience ...

Thu, 03/29/2012 - 18:04 | Link to Comment the grateful un...
the grateful unemployed's picture

if they have cash and they are willing to use it to ENHANCE shareholder value, then f**k the earnings. this is how Wall Street works.

Thu, 03/29/2012 - 18:23 | Link to Comment bugs_
bugs_'s picture

blackbury

Thu, 03/29/2012 - 20:30 | Link to Comment RussellChester8
RussellChester8's picture

my friend's sister makes $74/hr on the computer. She has been out of a job for seven months but last month her check was $17871 just working on the computer for a few hours. Read more on this site .... http://bit.ly/wYpMrv

Do NOT follow this link or you will be banned from the site!