Research In Motion Slammed After Mixed Report
Partially offsetting the hardware troubles, the company saw a surge in customers upgrading to its recently released update for its BlackBerry Enterprise Server, Kavelman said.
"We had a perfect storm in software this quarter," he said.
The shift to software did have a positive benefit: the higher margin sales helped the company's gross margin jump to 56.8% of revenue, up from 52.3% in the third quarter and 49.1% in the year-ago period. The company expects its gross margin to settle in the mid-50s, percentagewise, "going forward," Kavelman said.
RIM added 470,000 subscribers in the quarter to its BlackBerry service, up from 387,000 in the third quarter, giving it a total of 2.51 million subscribers at year end. The company had just 1.07 million subscribers at the end of its previous fiscal year.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV