Feeds

RIM looks to strong H2 as Q2 income slips

Expects 5m subscribers by March 2006

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.