In a non-surprising, but still shocking 1st quarter earnings report, Research In Motion announced a net loss of over half a billion dollars and some crippling delays in the launch of their new BB10 operating system. With the announcement of the stifling losses and software delays, RIM tried to paint a picture of their rebound, rather than their failings. Using their positive numbers like the 78 million BlackBerry users worldwide to balance the 5,000 job cuts that will be happening soon, the spin just wasn’t enough to keep many interested in the failing company. RIM’s stock closed down $0.05 today at $9.13 with after hours trading dropping the stock an additional 14.86% to $7.80 a share. Since RIM’s success with the Curve and Pearl in June of 2008, RIM stock has fallen from $144.56 a share, losing 93% of its value.
Despite the financial woes and potential job cuts, the most devastating news from today’s earnings announcement is the delay to the BB10 OS release. The QNX based OS has not been as easy to deploy as first thought and is suffering from setback after setback. What should have been ready to roll out in early 2012, is now being pushed back to early 2013. This delay may cause even the most staunch “crackberry” fan to ditch those physical keyboards and run for the greener pastures of a more current software.
As far as RIM is concerned, many are asking what this means for the future. What can RIM do right now to keep their user base? How long can they survive on borrowed time with stock prices plummeting? Some think that things will turn around for the once proud Canadian company, while others think that RIM, their patents and user base are worth much more than the bulk of the company.
Source: RIM (PDF)