RIM lowers aim for current Q
Over the air testing
The Waterloo, Ontario-based wireless firm turned in sales of $66.1m for the quarter ending March 2, a drop of 26.6% on the year. Operating losses were $16.6m compared to a profit of $1.9m last year. Net losses were $8.6m, compared to a $6.5m loss a year ago. This generated a loss per share of $0.11. However, this included a $0.03 gain, relating to recovery of a receivable which had been previously written off. Wall Street had expected the company to lose $0.15 per share on sales of $66.8m.
For the year so far, sales were up 32.9% to $294.1m, with net losses of $28.5m compared to a $6.2m loss a year ago.
The company said it was taking a more conservative approach to the upcoming quarters. It said it expected the loss per share for the current quarter to come in around $0.18 to $0.22, with revenue in the low $70m range. Analysts had been anticipating a loss of $0.12 per share on sales of $77.3m. The second quarter should show a similar loss to the first. The firm expects to return to profitability in the third quarter.
Asked about the company's progress in the CDMA sector, Jim Balsillie, chairman and co-CEO, said it was "progressing well." He said the firm was undertaking a lot of interoperability and "over the air" testing.
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