RIM tops profit expectations as subscriptions grow
(Adds analyst comment; in U.S. dollars unless noted)
By Wojtek Dabrowski
TORONTO, Oct 4 (Reuters) - BlackBerry maker Research In Motion Ltd (RIM.TO) (RIMM.O) reported a second-quarter profit on Thursday that beat expectations, as it broke the 10-million subscriber mark and predicted strength for the rest of the year.
RIM said it earned $287.7 million, or 50 cents a share, for the three months ended Sept. 1. That was up from a profit of $140.2 million, or 25 cents a share, in the same period a year earlier.
It also said it added 1.45 million subscribers in the quarter -- better than what it predicted in June -- to hit a total of about 10.5 million. It said more than 3 million of its devices were shipped in the quarter. For the upcoming third quarter, RIM forecast revenue of between $1.6 billion and $1.67 billion and earnings per share of between 59 and 63 cents. It said it expects to add about 1.65 million new subscribers.
The results for the second quarter were better than the top end of the outlook that RIM gave investors in June. The third-quarter forecast also handily beat analyst expectations, according to Reuters Estimates.
"We think that the space is growing a lot, this is the category leader -- new devices, new international coverage -- and the guidance is very, very good," Canaccord Adams analyst Peter Misek said shortly after the results were released.
RIM said its revenue in the quarter rose 108 percent to $1.37 billion from $658.5 million in the same period a year earlier.
"RIM's second quarter results were exceptionally strong on all metrics including revenue, subscriber account additions and net income," RIM co-Chief Executive Jim Balsillie said in a statement. "This growth is fueled by the depth of the BlackBerry product portfolio and the continued diversification of our business across market segments and geographies."
The Waterloo, Ontario-based company's shares dipped initially in after-hours trading, but quickly rebounded to trade in line with its regular-session Nasdaq close of $100.54, up 4.42 percent on the day.
The results did not please all observers: for example, at least one analyst expected the company to forecast 1.69 million subscriber additions for the third quarter -- even more than the 1.65 million RIM said it expects.
On the Toronto Stock Exchange, the shares added C$4.28 to finish at C$100.30.
($1=$1 Canadian)
((Reporting by Wojtek Dabrowski, editing by Rob Wilson; E-mail: wojtek.dabrowski@reuters.com; Reuters Messaging: wojtek.dabrowski.reuters.com@reuters.net. Telephone: +1-416-941-8009)) Keywords: RIM RESULTS/
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