Smartphone Sales Boost Research In Motion's Earnings
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.
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