This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

RIM Shoots Self in Foot, Then Puts Foot In Mouth

Stocks in this article: RIMM AAPL GOOG MSFT FB NOK

Over the past several weeks, Research In Motion's software development teams have made major progress in the development of key features for the BlackBerry 10 platform; however, the integration of these features and the associated large volume of code into the platform has proven to be more time consuming than anticipated.

Excuse me? Let me get this straight: This project has been your so-called "number 1 priority" but it has been mismanaged to the extent that not only will it miss the all-important holiday shopping season, but its delay will only increase the level of difficulty for RIM to regain any market share not just from Apple and Google, but now from even Microsoft (MSFT) and Nokia (NOK)?

I'm not quite sure if RIM has fully embraced the severity of its current situation. If it has, it certainly has not acted accordingly. Even worse, it needs to stop sending mixed messages.

The Quarter That Wasn't

For the quarter RIM reported revenue of $2.8 billion, almost 10% below analyst estimates of $3.1 billion. The $2.8 figure represents a sequential drop of 33% and a decline of 43% from the same period of a year ago. While the company did ship almost eight million BlackBerry units, it is down 40% from the 13.2 million it shipped last year. Its PlayBook tablets are not exactly flying off the shelves either.

For the quarter RIM only shipped out 260,000 units, a decline of almost 50% from the 500,000 sold last year during the same period. It is remarkable when one considers that Apple sells over one million iPads per week while it expects to sell approximately 30 million iPhones for quarter.

From the standpoint of earnings per share, RIM logged a loss of $518 million representing 99 cents per share on a GAAP basis. In the same period of a year ago, it reported a net loss of $192 million.

As far as the real numbers go, investors need only know this: It seems every quarter Apple is reporting profits in the area of $10 billion while RIM has reported a loss of over half a billion dollars. The story is clear and it does not appear that things are expected to get any better because RIM also expects an operating loss in the second quarter of fiscal 2013.

The only question is, when will someone come in and put RIM out of its misery? Its challenge was to find new markets while preserving the monopoly it once had in the enterprise space. It simply could not do that. 

2 of 3

Select the service that is right for you!

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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