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RIM Q2 revenue plunges 31%

BlackBerry maker Research In Motion (RIM) has reported a revenue of $2.9bn for the second quarter of 2013 ended 1 September 2012, down 31%, compared to $4.2bn it reported during corresponding quarter last year.

The revenue however increased 2% compared $2.8bn it reported during the first quarter of 2012.

The company recieved approximately 60% for its revenue from hardware, 35% from service and 5% from software and other revenue.

For the second quarter of fiscal 2013, the company posted a net loss of $235m, or $0.45 per share diluted, compared to a net income of $329m, or $0.63 per share diluted, a year earlier.

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The company shipped about 7.4 million BlackBerry smartphones in the quarter and sold 130,000 PlayBook tablets.

RIM president and CEO Thorsten Heins said: "Subscribers grew to approximately 80 million global users, revenue grew sequentially from the first quarter, cash, cash equivalents, short-term and long-term investments increased by approximately $100m to $2.3bn, and carriers and developers are responding well to previews of our upcoming BlackBerry 10 platform."

The company is planning to continue to invest in targeted marketing and sales programmes to drive sales of BlackBerry 7 handheld devices before the expected launch of the BlackBerry 10 smartphones.

RIM anticipates to report an operating loss in the third quarter of fiscal 2013 as it continues to work through the transition to BlackBerry 10 and complete its cost optimisation and resource efficiency programme.

"Make no mistake about it, we understand that we have much more work to do, but we are making the organizational changes to drive improvements across the company, our employees are committed and motivated, and BlackBerry 10 is on track to launch in the first calendar quarter of 2013,"Heins said.

Earlier this month, RIM had fixed a BlackBerry service outage across parts of Europe, the Middle East and Africa that left users without access for around seven hours.
This article is from the CBROnline archive: some formatting and images may not be present.

CBR Staff Writer

CBR Online legacy content.