RIM Rocked as Forecast Falls Short

SAN FRANCISCO - Shares of BlackBerry maker Research in Motion(RIMM Quote - Cramer on RIMM - Stock Picks) plunged after the company missed Wall Street's first-quarter expectations and guided below profit estimates for the second quarter.

Shares of RIM were down $11.26, or 7.9%, to $131.08 in recent extended trading.

RIM said first-quarter profit rose to $482.5 million, or 84 cents a share, compared with a net income of $223.2 million, or 39 cents a share, a year earlier.

Revenue rose 107% to $2.24 billion from $1.08 billion a year ago.

Analysts polled by Thomson Reuters were expecting revenue of $2.27 billion and earnings of 85 cents a share.

Approximately 2.3 million BlackBerry subscriber accounts were added in the quarter, bringing the total BlackBerry subscriber account base to more than 16 million. RIM had forecast net subscriber account additions to be approximately 2.2 million during the quarter.

For the second quarter, RIM guided revenue in the range of $2.55 billion to $2.65 billion. The company forecast earnings in the range of 84 cents to 89 cents a share.

Analysts were expecting revenue of $2.43 billion and EPS of 90 cents in the quarter.

Net subscriber account additions in the first quarter are expected to be approximately 2.6 million, said RIM.

RIM's stock had gained about 25% in the last three months, nearly the same as rival Apple(AAPL Quote - Cramer on AAPL - Stock Picks), even as competitors such as Motorola(MOT Quote - Cramer on MOT - Stock Picks) and Nokia(NOK Quote - Cramer on NOK - Stock Picks) have lost ground. Shares of Motorola were down about 23% and Nokia shed about 21% during the same period.