RIM Can't Deliver
Meanwhile, the company predicted in June that it would earn 57 cents to 63 cents a share on a GAAP basis on revenue ranging from $465 million to $490 million.
But on a conference call, CFO Dennis Kavelman encouraged investors to cut the company some slack. Included in RIM's bottom-line results were charges of $6.2 million related to an inventory write-down and a warranty issue, as well as another $6.6 million for litigation expenses related to its ongoing legal dispute with the patent-holding company NTP, Kavelman said.
Without those charges, he noted, RIM would have earned $120.2 million, or 61 cents a share.
"Adjusting for the impact of [those charges], our results were in line with our previous forecast," Kavelman said on the call.Investors however, didn't seem to fully buy into Kavelman's explanation. Although they gained some ground, RIM's shares were still off from Wednesday's close after the conference call. In recent trading, RIM's stock was down $2.90, or 3.8%, to $74.35. And the company had a bit of mixed news for investors on its current period as well. On the one hand, it brought up its revenue guidance for the third quarter. But it didn't take up its revenue expectations, citing an expected increase in operating expenses. By the numbers, the company predicted that it would earn 62 cents to 68 cents a share in the current quarter on sales ranging from $540 million to $570 million. Previously, the company projected that it would pull in sales of $525 million to $550 million in the quarter. Wall Street was calling for third-quarter profit of 66 cents a share on $547.7 million in revenue. Although the company posted strong sales growth in the just-completed quarter, there were some disappointments. Software sales came in around $41 million, which was less than the company expected.
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