June 17 (Bloomberg) - Research In Motion Ltd. fell as much as 13 percent in German trading after the BlackBerry smartphone maker said quarterly revenue may fall for the first time in nine years, and unveiled a plan to cut jobs.
Revenue of $ 4.2 billion to $ 4.8 billion in fiscal second quarter, RIM said in a statement yesterday. This was below the average analyst forecast of $ 5470000000 sales, according to the Bloomberg survey. Profit this quarter is 75 cents to $ 1.05 per share. Analysts had predicted $ 1.40.
RIM has been losing U.S. market share for Apple Inc. 's iPhone and phones running Google Inc.' s Android software, partly because not introduce a major new BlackBerry model since August. Google phones are cheaper and enlargements in Latin America, Asia and Europe, threatening the popularity of the cheaper models like the BlackBerry Curve.
"With this product portfolio is simply not up to snuff with its key competitors," says Paul Taylor, Chief Investment Officer, BMO Harris Private Banking in Toronto, which manages about $ 14500000000, including RIM's shares.
RIM, based in Waterloo, Ontario, yesterday, fell as much as 17 percent to $ 29.50 in late U.S. trading after the report. German trade shares fell as much as 13 percent today, equivalent to $ 30.28 in Frankfurt at 9:40.
Dual CEOs
RIM has come under increasing scrutiny by investors after its stock fell, the company lost market share in phone, and a new play book to rival Apple's iPad tablet computer, criticized the technology columnists. Last week, called the investor Northwest & Ethical Investments LP RIM separate chairman and CEO of analysts as to whether RIM's co-CEO structure is the best way to manage your business.
"With the two CEOs, you have a challenge," said Brian Modoff analyst at Deutsche Bank Securities in San Francisco, who rates RIM to "sell". "There are teams working on some features, but only to realize one or the other CEO, so there is a duplication of the structure."
The company said yesterday it plans to eliminate an unspecified number of jobs and organizational changes to accelerate product introductions. Redundancies should begin to take advantage of the third quarter, said CFO Brian Bidulka call.
"They definitely have some low-hanging fruit for cost cutting," said Modoff. "The simplified structure would be beneficial for the company."
New Product Delays
The company has unveiled a new version of its Bold phone last month, so beloved BlackBerry users with a physical keyboard and touch screen, which made the popular iPhone. The Bold and other new devices are available only late in the quarter, Co-CEO Jim Balsillie told analysts in a conference call yesterday.
Forecast "means the new units do not do it in the second quarter," said analyst Tero Kuittinen MKM Partners in Stamford, Connecticut. He has "buy" rating of the stock. "It's a quarter, they really need new equipment to get them there and they do not."
Balsillie reiterated that he and co-CEO Mike Lazaridis is committed to maintaining the structure of the executive branch. He told analysts yesterday that "complete the transition and take the company to the next level of success is something that none of us can do alone."
Lazaridis said that he and Balsillie has "never been more committed" to RIM.
Smartphone Market Share
RIM is part of the U.S. smart phone subscribers fell by 4.7 percentage points to 25.7 percent three months earlier in April, according to comScore Inc.
Full-year profit of $ 5.25 to $ 6 a share, excluding some costs, said RIM, lower than earlier forecast of $ 7.50. Analysts average forecast of $ 6.24.
Profit after tax in the first quarter, which ended in May, was $ 695 million, or $ 1.33 per share compared with $ 769 million, or $ 1.38, a year earlier. Sales rose 16 percent to $ 4910000000th
The company said that it was sent to 500,000 last quarter of the Playbook for sale starting April 19. Analysts predicted sales of 350,000 units, an average of six estimates compiled Bloomberg.
BlackBerry RIM delivered 13.2 million last quarter, compared with analyst estimates, 13.6 million euros. RIM said it 11 million to 12.5 million phones shipping this quarter, while analysts had predicted 13.7 million.
No comments:
Post a Comment