Blackberry-maker RIM reports $125m loss
Published: 29th Mar 2012 22:59:23
Blackberry manufacturer Research in Motion (RIM) has reported a quarterly loss, due in part to falling revenues on the back of weak smartphone shipments.
The Canadian company made a net loss for the three months to 3 March of $125m (£78m), compared with a profit of $934m a year earlier.
Revenues fell to $4.2bn from $5.2bn.
The firm also suggested it would refocus on the corporate market rather than on individual consumers.
It also announced the resignation of former co-chief executive Jim Balsillie.
Chief technology officer David Yacht will also be standing down.
Shipments of BlackBerry smartphones in the quarter fell to 11.1 million, down 21% from the previous three-month period.
Shipments of the company's PlayBook tablets hit 500,000, largely due to substantial discounting.
For the full financial year, the company made a net profit of $1.2bn, down from $3.4bn in the previous year.
The results were worse than analysts had expected and RIM shares fell sharply in after-hours trading.
RIM has struggled to keep up with rivals in the smartphone market, such as Apple's iPhone and handsets running on Google's Android operating system.
It has also struggled to gain a foothold in the tablet market.
Newly-appointed chief executive Thorsten Heins said the company would now focus on its traditional core market of corporate customers rather than on individual consumers as part of a strategy to turn the business around.
"We plan to refocus on the enterprise business and capitalise on our leading position in this segment," he said.
"We believe that BlackBerry cannot succeed if we tried to be everybody's darling and all things to all people. Therefore, we plan to build on our strength."
Analysts said the company could continue to struggle until it became clear whether this turnaround plan would succeed.
"They clearly have no fix on when this process will bottom, and until it really does, it's going to be very difficult for a lot of investors to come back in," said Eric Jackson at Ironfire Capital in New York.
Harvard CitationBBC News, 2012. Blackberry-maker RIM reports $125m loss. [Online] (Updated 29 Mar 2012)
Available at: http://www.manchesterwired.co.uk/news.php/1419615-Blackberry-maker-RIM-reports-125m-loss [Accessed 10th May 2013]
At 14:17:45 in OtherA man has been arrested on suspicion of indecent assault as part of a police investigation into historical sexual abuse at a Manchester musi...
At 14:15:43 in OtherThe proposed route for the new HS2 train line, bypassing Warrington, will have a negative impact on the town's economy, councillors hav...
At 11:17:34 in OtherThe High Court has upheld a decision by a judge that a man accused of child sex abuse offences whose trial collapsed is mentally unfit to st...
At 11:14:46 in OtherA man has been charged with the attempted rape of a woman in the Radcliffe area in Greater Manchester. ...
At 08:05:39 in OtherOrganisers of the National Eisteddfod should consider holding the event in England to widen its appeal, according to two politicians. ...
At 04:33:45 in OtherCouncillors have deferred a decision over plans for a 200-bed hotel on a university campus in Bristol....
At 03:01:03 in OtherSexual abuse complaints against a Church of England cleric were not referred to police by then Archbishop of York, David Hope, it has emerge...
At 22:09:38 in OtherA Bolton animal farm torched in an arson attack has been "inundated" with offers of help from around the world. ...
At 21:34:03 in OtherA police officer has set off on a 230-mile (370km) charity run in memory of murdered Greater Manchester PCs Fiona Bone and Nicola Hughes....
At 21:28:18 in OtherAn arts project designed to attract visitors to the East Lancashire stretch of the Leeds to Liverpool canal has been awarded £2m by the Arts...
News In Other Categories
Dirty Dancing is to replace Spice Girls musical Viva Forever! after it closes at the Piccadilly Theatre in London's West End....
A voluntary hygiene rating scheme for tattoo studios in Wales, the first of its kind in the UK, is set to be introduced next year....
The jury in the Eddy Shah rape trial at the Old Bailey has been discharged....
The introduction of energy smart meters in 30 million UK homes will be delayed for more than a year, the government has announced....
A two-year degree in heavy metal music has been branded an "easy option" by education campaigners....
With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol ba...