RIM: Outages Caused by European Backlog

NEW YORK ( TheStreet) -- Global disruptions in Research In Motion's ( RIMM) service beginning earlier this week were caused by the breakdown of a core switch in Europe and the subsequent malfunction of its back-up system, the BlackBerry maker said Wednesday in a press conference.

These failures then resulted in a backlog of unsent messages which have caused service problems and disruptions for other RIM users around the world, including the U.S. and certain countries in South America, including Brazil and Argentina.

"We have global teams working around the world who are focused on containing the issue," RIM's CTO for Software David Yach said. He declined to provide a timeline when service will be restored.

Yach also said the service issues were not the result of a security breach or hacking.

This week's service disruption is just the latest setback for RIM, which has seen its stock fall nearly 60% in the past year amid struggles to keep up with competitors Apple ( AAPL) and Google ( GOOG) in the smartphone race.

RIM's share of the U.S. smartphone market slid in August to 19.7% from 24.7% three months earlier, according to Comscore.

Shares of RIM closed down 2.2% to $23.88 on Wednesday.

-- Written by Olivia Oran in New York.

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