RIM outlook disappoints, sending shares lower

By Wojtek Dabrowski

TORONTO (Reuters) - Research In Motion offered investors an outlook on Thursday that fell short of some expectations, sending the BlackBerry maker's stock sliding 5 percent even as the company reported a higher quarterly profit that topped forecasts.

The share price's drop may reflect concern over a competitive landscape that has become more cluttered with alternatives to the BlackBerry, as well as lingering doubts about the impact of the global economic slowdown on both consumer and corporate spending

Earlier this month Apple Inc, a major rival in the consumer market, said it would cut the price of older models of its popular iPhone. Palm, a weaker competitor that could be gaining traction, recently launched its well-received Pre handset.

While some investors may not be so sure, RIM's outlook is still robust, said independent technology analyst Carmi Levy. It shows the Waterloo, Ontario-based company is still confident of its ability to keep pace with the competition, he said.

"They see it as a threat," he said of RIM's attitude toward rivals' new handsets and their aggressive prices. "They just don't see it as highly likely that it's really going to take them down significantly."

RIM earnings rose to $643.03 million, or $1.12 a share, in the three months ended May 30, from $482.5 million, or 84 cents, a year earlier.

Adjusted income in the quarter was 98 cents a share.

Analysts on average had expected RIM to earn 92 cents a share before one-time items, on revenue of about $3.4 billion, according to Reuters Estimates.