Feeds

RIM looks to strong H2 as Q2 income slips

Expects 5m subscribers by March 2006

Combat fraud and increase customer satisfaction

Research in Motion (RIM) today forecast its push email service would surpass 5m subscribers by the end of its financial year, up from the 3.65m it said it had at the end of its second quarter of fiscal 2006.

For the three months to 27 August 2005, RIM reported revenues of $490.1m, up eight per cent sequentially and 58 per cent year-on-year. Once again, 70 per cent of its revenues accrued from hardware sales, the rest coming from services (18 per cent), software (eight per cent) and other items (four per cent).

Net income for the period was $111.1m (56 cents a share), up 57.4 per cent on the year-ago quarter's $70.6m (36 cents a share) but down 16 per cent on Q1 FY2006's $132.5m (67 cents a share).

On a non-GAAP basis, the sequential drop becomes a rise: $120.2m in Q2 to $110.1m in Q1. Higher litigation expenses and a $6.2m inventory write-down and incremental warranty item this quarter, plus a big tax recovery in Q1, account for the difference.

Looking ahead, RIM said it expects Q3 to yield revenues in the range $540-570m, yielding earnings of 62-68 cents a share, both higher than previously forecast. The company said it expects to recruit 680,000-710,000 more subscribers during the quarter, when ends 26 November.

For Q4, it's looking to report sales of $590-620m, earnings of 74-81 cents a share, all on the back of a 775,000-825,000 increase in subscriber numbers. At the lower end of Q3 and Q4's subscriber-addition ranges, RIM should easily surpass 5m subscribers by 4 March 2006, the end of its current fiscal year. It also reckons its annual sales will pass the $2bn mark.

Q3 and Q4 should see the introduction of next-generation Blackberry devices based on Intel wireless and processor technology, which are expected to increase the RIM devices' data transfer speeds and widen their network support.

Then again, December will see the arrival of Motorola's Q, pitched head to head with the classic Blackberry form-factor, and Palm will introduce its Windows Mobile-based Treo smart phone in January. With so much of RIM's revenues coming from hardware, its next-generation models will need to offer something special if the company's to compete effectively with these players and build subscriber numbers as it hopes to. ®

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.