RIM Can't Deliver
And the total subscribers to the company's BlackBerry service grew by 620,000 users. The company had previously predicted that subscribers would grow by 620,000 to 650,000 users in the quarter.
On the call, Kavelman attributed the company's software and subscriber growth results to seasonality, particularly in Europe. Software sales were also likely affected by customers' anticipation of the expected release of the company's server software later this year, he said.
That uptick in operating expenses weighed on the company's second quarter as well, at least compared with the first quarter. The sequential growth in the company's spending on research and development, marketing and amortization all outpaced the company's overall sales growth.
Still, RIM had much to crow about with its strong overall growth. Meanwhile, the company promised better things for investors later in the year. The company expects to surpass 5 million subscribers by the end of the year, and predicted significantly better-than-expected results in its fourth quarter.For the fourth quarter, RIM projects that it will earn 74 cents to 81 cents a share on sales ranging from $590 million to $620 million. Analysts had predicted earnings of 71 cents a share on sales of $586.6 million.
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