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Subs up at RIM

Patent woes lifted

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Signups to Research in Motion’s data service hit 625,000 in its fourth quarter as the handheld vendors’ patent problems straightened themselves out.

The firm expects subscriber additions to rise further in the current quarter, it added, as it released its latest results yesterday.

Revenues for the quarter ending 4 March came in at $561.2m, up 39 per cent on the year. Profits were $18.4m, compared with last year’s $2.6m loss. This year’s profits included a settlement and litigation provision of $162.5m.

The firm settled its long-running patent suit with NTP in the quarter. At one point, it looked as if it might have to pull its service in the US. The lifting of this threat helped boost subscriber additions to 625,000 it said.

Things should pick up further in the first quarter with additions jumping to 675,000. First quarter revenues should be $580m to $610m, with GAAP earnings per share of $0.60 to $0.65.

Full year revenues were up 53 per cent to $2.07bn, while profits were $382m, compared to $213m the previous year. ®

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