RIM Reaper Comes for Tech Faithful

SAN FRANCISCO -- For those investors clinging to Research In Motion(RIMM Quote) as one of tech's last safe havens, please release your grip now.

The maker of the ubiquitous BlackBerry handheld device said late Tuesday that it will post third-quarter earnings and revenue below both its prior projection and current Wall Street estimates.

The company's revenue forecast of $2.75 billion to $2.78 billion, for example, was as much as 7% below analysts' consensus projection of $2.96 billion.

Shares of RIM fell as much as 4% in early trading, but bounced back to a recent gain of nearly 1% to $37.68 as the broader market climbed in an attempt at an almost-unheard-of sixth rally in eight sessions.

Regardless of the near-term settling of RIM shares, the company has confirmed something we should have already guessed: An economic recession combined with an historic downsizing of Wall Street, along with a pinch of strength in the dollar isn't good for business.

RIM said about two-thirds of its revenue shortfall was due to fewer product shipments, with the rest coming from falling foreign currencies against the dollar. RIM said it would add 2.6 million net new subscribers in the corner, below its forecast of 2.9 million subscribers.

A couple of points that are worrisome for RIM investors and tech traders in general: First, with each passing week, investors are hoping to get additional insights into how long any economic sluggishness may last. Unfortunately, the most common forecast from tech companies seems to be: "We really have no idea." Uncertainty is the worst news of all.