NEW YORK ( TheStreet) -- Research In Motion ( RIMM) shares dropped as much as 16% in after-hours trading Thursday following the company's disappointing first-quarter earnings report, another cut in its full year outlook and the announcement of plans to reduce headcount. BlackBerry maker has struggled to keep up with rivals Apple ( AAPL) and Google ( GOOG) in the smartphone sector, in part because it hasn't released a new model in months.
The company posted adjusted earnings of $1.33 per share, below year-ago earnings of $1.38 and edging analyst expectations of $1.32 per share. RIM also reported revenue of $4.9 billion, which was lower than estimates of $5.1 billion but higher by 16% over the same period last year. RIM also sharply reduced its full year fiscal 2012 outlook to between $5.25 and $6 per share. "Fiscal 2012 has gotten off to a challenging start," co-CEO Jim Balsillie said in a press release. "The slowdown we saw in the first quarter is continuinginto the second quarter, and delays in new product introductions into the very late part of August is leading to a lower-than-expected outlook in the second quarter." RIM shares have dropped almost 40% year-to-date, as the company continues to lose smartphone market share to the iPhone and Google's Android devices. Its PlayBook tablet device, designed to rival the iPad, was largely panned by tech reviewers. The company shipped 13.2 million BlackBerrys and 500,000 PlayBooks during the first quarter. Analysts had anticipated shipments of 13.5 million smartphones and 350,000 PlayBooks. Earlier today RIM announced the departure of its chief operating officer, Don Morrison, who will be taking a medical leave from the company. Former RIM chief operating officer Larry Conlee will return as a special adviser. On an earnings call with analysts, Balsillie and co-CEO Mike Lazaridis denied there were any problems with the company's executive management structure. "Our commitment to RIM is stronger than ever," said Lazaridis. "We know what we have to do jointly." --Written by Olivia Oran in New York. >To follow the writer on Twitter, go to http://twitter.com/Ozoran. >To submit a news tip, send an email to: email@example.com.