John Stith 2005-06-29
Research in Motion released their first quarter numbers and the Canadian PDA powerhouse pumped up slammed on earnings. The folks making Blackberries jammed on $132.7 million in profits or 67 cents a share, up more than double over the 28 cents from last year.
The manufacturer of the Blackberry line of wireless personal devices turned in a cool $453.9 million sales, climbing 12% of the previous year's sales. The totals were up slightly over projections of 55 cents a share on sales of $452 million. The net profit after taxes and litigation was 56 cents a share, still up 2 cents on the projected net. (Source: Thomson).
American Technology Research analyst Rob Sanderson told Reuters, "It's typical whisper-number expectations getting high going in. But I think here you've got it combined with all these abnormalities going on in the legal side. You have people gaming the stock, I think."
The one drawback to RIM report was in subscribers. They reported slightly lower than projections at 592,000 subscribers. RIM has already had some stock problems recently. RIM recently resumed their legal battle with NTP Inc. for whapping $450 million settlement. There's a chance RIM's wireless service could be ordered to shut down by the court through an injunction.
Regardless, RIM's had a phenomenal year so far after passing Palm in worldwide sales of their wireless devices, a market Palm basically created.