Feeds

Balsillie bails as RIM reports terrible quarter

$125m loss prompts (another) management reshuffle

  • alert
  • submit to reddit

High performance access to file storage

Former co-CEO of RIM Jim Balsillie is to leave RIM's board of directors, along with two other senior executives, after the company reported a thumping $125m loss for the last quarter.

"As I complete my retirement from RIM, I'm grateful for this remarkable experience and for the opportunity to have worked with outstanding professionals who helped turn a Canadian idea into a global success," said Balsillie in a statement.

The phrase "global success" was hardly on first thing on analysts' minds when RIM's fourth quarter figures were issued on Thursday. The company reported that revenues were down 19 per cent on the last quarter, and 25 per cent year-on-year, with BlackBerry shipments falling 21 per cent in the last three months.

The company reported that they had shipped over 500,000 of RIM's PlayBook tablet, although there has been heavy discounting of the devices, and also took a $267m write-off on some of its BlackBerry 7 inventory that isn't proving to be salable. Overall margins for the quarter fell from 39.8 per cent three months ago to just 33.4 per cent now.

In its quarterly statement, the company said it was expecting further pressure on revenue in 2013, citing the slack US smartphone market (something Apple doesn't seem to be suffering from) and selling handsets at lower margins. For the same reasons, it declined to give forecasts for future financial performance.

Balsillie, who joined the company in 1992 and stepped down from the co-CEO role in January along with his fellow co-boss Mike Lazaridis, is not the only executive to flee the sinking ship explore new business opportunities. Software CTO David Yach is leaving, and global COO Jim Rowan is off "following an open dialogue on the future of global operations."

"The company has substantial strengths that can be further leveraged to improve our financial performance, including RIM’s global network infrastructure, a strong enterprise offering and a large and growing base of more than 77 million subscribers," said CEO Thorsten Heins.

"I'm very excited about the prospects for the BlackBerry 10 platform," he added, "which is on track for the latter part of calendar 2012. Notwithstanding these strengths and opportunities, the business challenges we face over the next several quarters are significant and I am taking the necessary steps to address them."

So that's all right then. ®

High performance access to file storage

More from The Register

next story
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
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
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

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
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.
HP ArcSight ESM solution helps Finansbank
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.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.