RIM shares soar on rosy results

By Wojtek Dabrowski

TORONTO (Reuters) - Research In Motion (RIM.TO) (RIMM.O) posted surprisingly strong quarterly earnings on Thursday and offered a rosy outlook that signalled further growth despite the global economic slowdown as consumers embrace its newest BlackBerry smartphones.

The results, which also revealed RIM now has a total of about 25 million BlackBerry subscribers, sent the company's shares about 21 percent higher in after-hours trade.

RIM's profit rose to $518.3 million (351.8 million pound), or 90 cents a share, in its fourth quarter ended February 28, from $412.5 million, or 72 cents, a year earlier.

The results topped the expectations of analysts, which had been dampened by a profit warning that RIM delivered in February.

"They are crushing it," Canaccord Adams analyst Peter Misek said. "Not only are they holding up, but it's clear they're gaining market share."

Revenue was $3.46 billion, up 84 percent from $1.88 billion in the year-before quarter, putting it on the high end of RIM's December forecast for revenue of between C$3.3 billion and $3.5 billion.

"This is wildly better than people were looking for," DSAM Consulting analyst Duncan Stewart said of the company's overall results. "Getting improvement in both margin and growth at the same is a rare thing in the field of technology."

For the current quarter ending May 30, RIM expects revenue of between $3.3 billion and $3.5 billion and earnings per share of 88 cents to 97 cents. Gross margin is expected to come in between 43 and 44 percent, the company said, up from 40 percent currently.