RIM Sinks as Forecast Falls Flat

RIM tried to allay concerns and suggested the increased spending is on marketing in anticipation of new product launches later this year.

So far, RIM had announced just the BlackBerry Bold, a 3G phone with strong multimedia features. However, many analysts believe that the company may be also readying to launch newer phones including a touch-screen BlackBerry, fresher versions of its Pearl phone and a flip phone.

Meanwhile, the launch of the BlackBerry Bold is likely to be delayed from the late July or early August that most company watchers had been expecting, according to a report Wednesday by Mike Abramsky, an analyst with RBC Capital Markets.

RIM did not offer a specific date for launch but company co-CEO Jim Balsillie said the device will be ready for release this summer. "We have made the Bold available to carriers for testing," he said.

The impact from the phone's sales are likely to be felt in the third quarter, rather than the current one, the company said.

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.

For the second quarter, RIM expects gross margin at around 50.5%.