This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Smartphone Sales Boost Research In Motion's Earnings

Stocks in this article: RIMM

Despite the slowdown in the global economy, Research In Motion (RIMM) (RIMM) reported on Dec. 18, 2008, that its third-quarter fiscal 2009 earnings grew 7.0% on strong holiday sales of its BlackBerry smartphones.

Net income for the quarter advanced to $396.30 million or 69 cents per share from $370.46 million or 65 cents per share in third-quarter 2008. Excluding one-time charges, the company earned $477.30 million or 83 cents per share, which were in line with the most recent consensus estimate.

During third-quarter 2009, the company's revenue surged 66.3% to $2.78 billion from $1.67 billion on higher sales of BlackBerry smartphones. Out of the total revenue, 81% was attributed to device sales, while service, software and other revenue added 13%, 2% and 4%, respectively.

Furthermore, Research In Motion shipped approximately 6.7 million devices during the quarter and 2.6 million of net new BlackBerry subscriber accounts were added. At the end of the quarter, the company's total BlackBerry subscriber account base was approximately 21 million, up 14% over second quarter 2009.

Recently, Research In Motion entered into an arrangement to acquire Chalk Media for C$23.13 million or C$0.14 per share in an all-cash deal. Additionally, it announced that its wholly owned subsidiary commenced an unsolicited takeover bid to purchase all outstanding common shares of Certicom for C$1.50 per share. Moreover, Rogers Communications Inc.'s (RCI) Rogers Wireless and Research In Motion launched the BlackBerry Curve 8900 smartphone.

Looking forward to fourth-quarter 2009, the company expects its earnings per diluted share to be in the range of 83 cents to 91 cents per share on revenue of $3.3 billion to $3.5 billion. Furthermore, net subscriber account additions are anticipated to be approximately 2.9 million. Moreover, the shipments volumes were estimated to range between 7.5 million and 8.0 million units.

Once these most recent quarterly results are finalized, they will be run through TheStreet.com Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit TheStreet.com Ratings Screener.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs