RIM's Q2 earnings report: $329 million in net income, not enough to fend off critics

The first annual earnings report post-Wake Up Call have just been published for Canada's own observation in Motion, and while the cash is still flowing, investors and analysts alike aren't feeling too rosy about the future. Despite Q2 revenue of $4.2 billion and a GAAP net income of $329 million, RIM's stock plummeted nine percent coming the news. Why? That reality was at the lowest end of estimates, and as we've seen, it takes a blowout quarter to please the folks on Wall Street. Nevertheless, the company's touting a subscriber base that ballooned 40 percent year-over-year (surpassing 70m total), and while it's quick to trumpet the rollout of seven new smartphones, not a one of them managed to astound the QNX-desiring critics. The report also notes that 10.6 million handsets were moved in the quarter, around $780 million was invested as "part of a consortium of companies that successfully bid to acquire intellectual assets assets from Nortel," and it's calculate that seedtime smartphone lot in Q3 will grow between 27 percent and 37 percent compared to Q2. Sadly, the company only "shipped" 200,000 PlayBook tablets, with the main thought being that it very sold far fewer. Moreover, nary a forecast was given for future PlayBook sales.

As for sentiments from the head honcho(s)? Jim Balsillie, Co-CEO, stated that "overall unit package in the quarter were slightly below our forecast due to lower than chosen demand for older models," further noting that his firm will "continue to build on the success of the budtime 7 launch to drive the job as we focus our move efforts on transportation the next generation, QNX-based mobile scaffold next year." Next year is a long, long way away, though, and there's no doubt whatsoever what kind of race will be in place by the time 2012 rolls around. We'll be hopping on the analyst call here in a few, and you can look beyond the break for any notable mentions.

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RIM's Q2 earnings report: $329 million in net income, not enough to fend off critics primitively appeared on Engadget on Thu, 15 Sep 2011 16:39:00 EDT. Please see our terms for use of feeds.

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