Blackberry maker RIM has huge losses in the first quarter.
June 29, 2012- Results for the first quarter for Research In Motion, the Canadian company that manufactures the Blackberry, were grim. The losses were much wider than previously expected and the company once again delayed the launch of the Blackberry 10 OS. This marked yet another low point for the company as it continues its spiral downward.
It is not a complete surprise, as just a month ago Thorsten Heins, the CEO warned that lower sales volumes combined with the highly competitive nature of pricing in the current marketplace would result in another operating loss at quarter end. He also said at that time, the next few quarters would be a challenge for the company.
RIM announced on Thursday losses for the first quarter of $518 million or $0.99 per share. Analysts expected a loss of just one cent per share. Sales overall for the Ontario based business dropped 43% from $4.9 billion during the same quarter last year.
RIM announced it shipped only 7.8 million Blackberry handsets during the quarter and a paltry 260,000 PlayBook tablets. RIM also announced it would implement cost cutting measures that include a reduction in its workforce of nearly 5,000 jobs.
Heins said the top priority for the company going forward was the launch of the Blackberry 10, which he said would now happen sometime during the first quarter of 2013.