Feeds

RIM revenues rise

Anticipates rosier earnings ahead, too

  • alert
  • submit to reddit

Reducing security risks from open source software

Blackberry maker Research in Motion this week raised its performance expectations for the coming couple of quarters despite the prospect of its failure to defend itself against patent holder NTP's legal action.

Driving RIM's revised forecast were figures for the company third quarter of fiscal 2005. In the three months to 27 November 2004, RIM realised revenues of $365.9m, up 18 per cent on the previous quarter's $310.2m and 138 per cent on Q3 2004's $153.9m.

Net income for the period was $90.4m (46 cents a share), up 28.1 per cent on Q2's $70.6m (36 cents a share) and 454.6 per cent higher than Q3 2004's figure, $16.3m (ten cents a share).

Q3 2005's figure would have been higher still had RIM not set aside $24.6m to cover litigation expenses, it said. Fighting the legal battle with NTP cost the company a further 12 cents a share's worth of earnings.

RIM's revenues continue to be driven by sales of its Blackberry handhelds, which accounted for 71 per cent of the company's sales during the quarter, up slightly on Q2's share. Of the rest of RIM's Q3 revenue, 17 per cent came from service deals, seven per cent from software licences and five per cent from other sources.

During November this year, RIM announced its user-base had risen beyond 2m individuals. By the end of the quarter, the tally had grown to 2,044,000, up 387,000 on the previous quarter.

Looking ahead, RIM said it now expects the current quarter, Q4 FY2005, to yield sales in the region of $390-410m, up 6.6-12.1 per cent sequentially, both lower than the previous quarter-on-quarter jump. Despite that, Q4 earnings will fall between 54 cents and 48 cents, the company said, higher than previously forecast.

Q1 FY2006 will deliver 51-57 cents per share in earnings on sales of between $430m and $455m, RIM said. Without litigation expenses, the two quarters' incomes would come to 60-67 cents and 64-71 cents per share, respectively.

At the end of Q3, RIM had $1.64bn in cash and investments, up from $1.59bn at the end of the Q2. ®

Related stories

RIM infringed NTP patents, appeal court rules
RIM ships Blackberry Enterprise Server 4.0
RIM takes active-user total to 2m
RIM signs BT to sell Blackberry
RIM rises as PalmOne slides in Euro device market

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.