Research in Motion Cuts Earnings Forecast

SAN FRANCISCO -- BlackBerry maker Research in Motion (RIMM Quote) lowered its forecast for third-quarter revenue and earnings per share, citing the impact of the strong dollar and the weak U.S. economy.

The Waterloo, Ontario-based company said it now expects its adjusted earnings to be in a range between 81 cents and 83 cents a share for the quarter ended Nov. 29. That's down from its initial forecast of between 89 cents and 97 cents a share.

Analysts had been expecting, on average, earnings of 91 cents a share, according to a survey by Thomson Reuters.

The lowered forecast was "primarily due to the lower-than-estimated revenue and the unfavorable impact of the strengthening U.S. dollar during the quarter," the company said late Tuesday.

It said it now expects third-quarter revenue to be in a range between $2.75 billion and $2.78 billion, down from a previous range of $2.95 billion to $3.10 billion.

Analysts had expected revenue of $2.96 billion.

RIM said two-thirds of the difference in the revenue forecast was because of lower-than-estimated unit shipments of existing products, which it attributed to the weak U.S. economy and shifts in product launch dates within the quarter.

It said its gross margin for the quarter would be between 45 and 46%, which it described as lower than expected.

RIM said it expects the number of net new BlackBerry subscriber accounts added in the quarter to be about 2.6 million, lower than the 2.9 million forecast earlier.

But it cited strong customer response to its new BlackBerry phones launched in the current quarter and noted "strong momentum" in recent weeks.