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Research In Motion (RIMM): FQ1 EPS of -$0.37 misses by $0.36. Revenue of $2.81B (-43% Y/Y)...

  • Thursday, June 28, 2012, 4:25 PM ET
    Research In Motion (RIMM): FQ1 EPS of -$0.37 misses by $0.36. Revenue of $2.81B (-43% Y/Y) misses by $300M. 7.8M BlackBerries shipped, down from FQ4's 11.1M. 260K PlayBooks shipped, down from FQ4's 500K. Operating loss expected for FQ2. BlackBerry 10 smartphones now expected in calendar Q1 2013. Shares halted. (PR)
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This news story has 44 comments:

  •  
    Ouch.....
    28 Jun 2012, 04:27 PM Reply Like
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    Q1 2013 for BB10. My bet the stock will trade down to $7 when it opens for trading. Pathetic.
    28 Jun 2012, 04:28 PM Reply Like
  •  
    Ooof!
    28 Jun 2012, 04:29 PM Reply Like
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    Come on RIMM bulls...spin this disaster.
    28 Jun 2012, 04:30 PM Reply Like
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    trying :) .... I`m a bb user and don`t wanna switch, but I guess with the delay they`re done..... waiting for a buyout
    28 Jun 2012, 04:36 PM Reply Like
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    depends on what you bought in at, there might be a good opportunity here if you get in just before they announce a buyout/patent sale.

    Try catching that knife though at your own risk!!
    28 Jun 2012, 04:37 PM Reply Like
  •  
    I've been short RIMM. This is the reason. It can only get worse from here, as there is likely no prospective buyer, unless they want a Palm or MySpace repeat. Good example of a company that failed to plan in advance for the changes and challenges that were needed to stabilize and grow the business.
    28 Jun 2012, 04:31 PM Reply Like
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    I opened a short position today ahead of earnings. Sometimes I am just so right.
    28 Jun 2012, 04:37 PM Reply Like
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    I opened one too!!! yeah! Just a pity that it wasn't a bigger position, but still... Now let's hope that it opens low, low, low...
    28 Jun 2012, 04:41 PM Reply Like
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    dang. i was too busy at work today but i was going to buy some puts if it didn't open way down today.
    28 Jun 2012, 07:47 PM Reply Like
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    Sometimes you just have to admit failure and move on, I think that time has come for RIMM...
    28 Jun 2012, 04:35 PM Reply Like
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    It's been 20minutes since the release...come on RIMM bulls. Where are the clowns who have attacked me for several months over this dog? Schadenfreude at its best right here.
    28 Jun 2012, 04:36 PM Reply Like
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    I have 10 RIMM 10p's.. Can't wait to see the option market tomorrow.
    28 Jun 2012, 04:40 PM Reply Like
  •  
    We all knew the results are going to be bad, however the product delay put`s more nails into the coffin.

    Buyout please, so we can at least save the quality of the product.
    28 Jun 2012, 04:42 PM Reply Like
  •  
    D'oh!

    Seriously...why would anyone hold this dog?
    28 Jun 2012, 04:45 PM Reply Like
  •  
    Some people like to gamble, I suppose.
    28 Jun 2012, 04:47 PM Reply Like
  •  
    I want to know who was buying today right before earnings to make it jump from 8.90 to 9:13? Is this normal before earnings or did it just have more to do with the overall market rally?
    28 Jun 2012, 04:51 PM Reply Like
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    The sad story is that they would probably find a lot of buyers one year ago, but now it's too late...I guess some potential buyers are just waiting the company to file for bankruptcy to get the patent portfolio...the new OS BB10 is going nowhere...there's nothing disruptive on that...if it was that good they would have found a buyer already.
    28 Jun 2012, 04:54 PM Reply Like
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    BB10 and accompanying handset are the only thing that matter. It's a binary outcome. 1Q13? Seems a little late.
    28 Jun 2012, 04:54 PM Reply Like
  •  
    And poor Jim never even got his hockey team. He took his hand off the wheel for a good part of that year and when he finally came back, they were already heading into a death-spiral in product innovation. Brilliant leadership.
    28 Jun 2012, 04:56 PM Reply Like
  •  
    Shocking that the frauds posing as "investors" still haven't shown up. lol
    28 Jun 2012, 04:56 PM Reply Like
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    I suspect even the most RIMM faithful, especially those holding lots of shares, are going to need a few minutes to breath into a paper bag, take some Excedrin and possibly have a good stiff drink before they are able to start reacting/typing.
    28 Jun 2012, 04:58 PM Reply Like
  •  
    @george.otty:

    Oh, they won't let a little thing like this slow them down. Watch for the spins in the next few hours. I predict that we'll see dozens, maybe hundreds, of comments on various SA articles saying, "We expected this. It's just preparing for the huge success of BB10 when it launches in ... er, when was that?"
    28 Jun 2012, 05:41 PM Reply Like
  •  
    "Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM), a world leader in the mobile communications market, today reported first quarter results..."

    World leader. Yeah.
    28 Jun 2012, 05:00 PM Reply Like
  •  
    It might be time to take a serious look at the media in all of this. I hate to say conspiracy, but this is beginning to look too much like a massive media hatchet job.
    This goes far beyond legitimate reporting when "anonymous tips are used as explanations for what might better be defined as tribal warfare.
    28 Jun 2012, 05:49 PM Reply Like
  •  
    Bought 1K July 21'12 $7 Put a couple of days ago, and now trying to figure out good timing to sell them. Some bad news drives the stock price down for a long period of time, some does so only for a short period of time, while still some even drives the stock price up. How will this bad news on RIMM play out? Any comments/suggestions will be appreciated.
    28 Jun 2012, 06:08 PM Reply Like
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    SELL MORTIMER!!

    You don't want to be on the wrong side of a sudden buyout.
    28 Jun 2012, 08:31 PM Reply Like
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    I think you should take off at least your initial investment right away, and let the rest play out for a couple of days. There are no one day moves as they say, so there will probably be more selling. JPM's recent gap down is a good example. Nice trade!
    28 Jun 2012, 10:49 PM Reply Like
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    Looking at the curves of RIMM's historical earnings and stock prices during the period from Q2 2010 to Q4 2012, its stock price drops for an extended period of time (say 1 to 3 months with some small and short-lived bounce-backs) each time when its earnings/share beat the consensus by $0.03 or less or miss the consensus. The biggest miss during that period was $-0.08 in Q2 2012, and that miss was followed by the stock price dropping from about $30 to about $15 (a drop by ~50%) during the 3 months of Q3 following that earnings announcement. This time around, its Q1 2013 earnings miss the much lowered consensus of $-0.01 by $-0.36 (Ouch!), 4.5 times as much as the worst miss recorded during the period from Q2 2010 to Q4 2012. Would this together with the once-again delayed BB10 and ever more and better competitive products point to a trajectory of RIMM's stock price from $9 to $2 during next 1 to 3 months? Would any savvy buyout options wait for this play out?
    28 Jun 2012, 11:49 PM Reply Like
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    @ ~$5 you begin to bump up against RIMM's liquidation value. Be careful.
    29 Jun 2012, 02:45 AM Reply Like
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    no company wants to make the mistake msft nearly did offering thirty billion for yahoo then getting turned down then later being able to prob pick it up for half at 15 billion...
    29 Jun 2012, 10:51 AM Reply Like
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    PALM and HP is a perfect example.
    29 Jun 2012, 10:55 AM Reply Like
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    i think hp is the next to fall....this decade is bad for dinosaurs....
    29 Jun 2012, 11:06 AM Reply Like
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    Hi DeepValueLover, Vitamin, scott trader and emburns:

    Thanks for your comments/suggestions to my June 28, 2012 posting "Bought 1K July 21'12 $7 Put". To show my appreciation for them, I would like to share with you how my tradings have been eve since. Today, July 7, 2012, is a day full of actions: At $.23, I sold most of RIMM Jul 21 12 7.00 PUT (when RIMM @$7.21) and bagged a good gain (previously missed a gain up to 115% on July 2 because of mistakenly waiting for RIMM to drop more (below $7.14). But, RIMM bounced up instead from July 2's low of $7.14 to July 6's high $8.14, knocked down my RIMM PUTs by 75% below cost/capital with the PUT going down to as low as $0.06. Confident that RIMM was going to come back down in a few days, so waited for it to happen and glad it did drop from July 6's high of $8.14 to today's low of $7.20 with the PUT going back up to as high as $0.24 today. If you are active trading, please be aware what I experienced in last few days of trading: there seem to be a lot of buying interest/power for RIMM around $7.20.

    Also bagged 20% gain on ARNA CALL today after its price has gone up for two days in a row.

    I still own some RIMM PUT and AAPL CALL, and now looking for new opportunities. Any comments/suggestions will be much appreciated.
    10 Jul 2012, 06:25 PM Reply Like
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    Correction: "Today, July 7, 2012, is a day full of actions" in my above posting should have been "Today, July 10, 2012, is a day full of actions". Sorry for the typo.
    10 Jul 2012, 07:28 PM Reply Like
  •  
    Fade any 1% up moves in RIMM for the rest of the year.

    Sell puts @ the $5 strike and below at will.

    Collect the easy premiums and sleep well at night.
    10 Jul 2012, 09:01 PM Reply Like
  •  
    Smart option trader ..... my sons friend which whom looks to me for invest advice just blew me away with his ARNA call...made back his FB loss...overnight.....long aapl dis nuan imax
    12 Jul 2012, 12:49 PM Reply Like
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    Scott Trader: that was good - he/she did not wait for more gains. Yesterday and today ARNA CALL has reversed trend thanks to Cramer's comment and Fed's too.
    12 Jul 2012, 01:12 PM Reply Like
  •  
    The smartphone and tablet market has now become a 'winner takes all' brutal game. Folks usually replace gadgets in 2 to 3 years and according to the trend more would avoid Rim. Rim's outlook is pretty dim.

    Looking back they probably missed that boat from Amazon. Like selling a house, after you list, your first offer is 'usually' the best offer!
    28 Jun 2012, 06:49 PM Reply Like
  •  
    Then why is Microsoft getting into the market?

    It would be nice if people learned form the PC business. Less choice is not a good thing.
    29 Jun 2012, 08:12 AM Reply Like
  •  
    Too much "choice" is not necessarily good, especially because many of the choices are not going to be good. See http://bit.ly/O27XiE
    30 Jun 2012, 09:11 AM Reply Like
  •  
    I guess pointing out that having 300 more brands of soap hasn't prevented those 300 brands from making money.

    Having only 2 choices hurts innovation.
    11 Jul 2012, 07:14 AM Reply Like
  •  
    " guess pointing out that having 300 more brands of soap hasn't prevented those 300 brands from making money."

    Could you provide some documented proof of that statement? Remember that many brands of soap are made by the same company.
    11 Jul 2012, 11:56 AM Reply Like
  •  
    aapl and goog ate their lunch ..... not even going to be any scraps left....even patents probablly are co licensed so they will not be of a lot of value
    28 Jun 2012, 09:15 PM Reply Like
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