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Research In Motion (RIMM): FQ2 EPS of -$0.27 beats by $0.19. Revenue of $2.87B (-31% Y/Y) beats...

  • Thursday, September 27, 2012, 4:14 PM ET
    Research In Motion (RIMM): FQ2 EPS of -$0.27 beats by $0.19. Revenue of $2.87B (-31% Y/Y) beats by $370M. 7.4M BlackBerry shipments, 130K PlayBooks. Shares +14% AH. (PR)
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This news story has 39 comments:

  •  
    Looks like some options plays are getting killed after hours.
    27 Sep 2012, 04:17 PM Reply Like
  •  
    Beautiful!! I guess when RIMM announced an increase to 80m users everyone should have anticipated better numbers all-around.
    27 Sep 2012, 04:23 PM Reply Like
  •  
    We knew that yesterday.
    27 Sep 2012, 05:22 PM Reply Like
  •  
    My options are doing just fine ;-)
    27 Sep 2012, 04:24 PM Reply Like
  •  
    Cool. I saw a huge amount of open interest at the 6.00 strike. That's not looking too great now.
    27 Sep 2012, 04:29 PM Reply Like
  •  
    Some of that could have been part of a 6-8 or 6-7 strangle or 6 straddle.
    27 Sep 2012, 04:32 PM Reply Like
  •  
    Definitely. I was reading a bit about that strategy this week. There were far too many open positions to suggest there were lots of straddles. Almost seems risky at this point, with over 13% after hours movement. Will be interesting to see where shares head towards October options expiration.
    27 Sep 2012, 04:37 PM Reply Like
  •  
    It will go down tomorrow. RIMM is dead. Even if they come out with BB10, 11, 12,..... they will never be close to Samsung and lets not talk about Apple because that is another level.... so my recommendation for the people that are bullish just cash out ASAP.
    27 Sep 2012, 05:01 PM Reply Like
  •  
    Based on that logic, every company that is not Samsung nor Apple should simply leave the smartphone sector. When will that happen?
    27 Sep 2012, 05:04 PM Reply Like
  •  
    How about everyone jsut be ignroant like yourself? Care to explain your thesis or write an article about it?
    27 Sep 2012, 05:23 PM Reply Like
  •  
    Every short says the same thing. RIMM is dead! How can a company with zero debt, a reduction in quarter over quarter liabilities, positive cash flow and an increased cash position be dead? Customers such as the DOD, CIA, FBI, other foreign intelligence and Military organizations will ensure that RIMM does not die. Unless they voluntarily give up.. If you just add together all government clients, we can get a pretty good idea on expected BB10 sales and this of course would be at the low end, a worst case scenario. Being a user of the playbook, I can attest to the fact that others outside of government will buy a blackberry device. Every individual views value from a different light and the purchase of a 32G playbook for $235 was a no-brainer over the comparable $750 IPAD. I can use any social media, access any banking or financial website, play any game, launch any application that is available on the WORLD WIDE WEB. Some of these interactions are more efficient then the experience received from using an Ipad, others not as much. However, for a fraction of the cost and giving the life cycle for such a device, saving the $500 by buying the playbook over the Ipad is the savvy move for a rational investor that would like to retire at some point without government assistance. As that $500 bought me some Bank of America last January at $6 in my ROTH IRA which has now turned into $750 since BAC is at $9. Have I said that I could not be happier with the playbook. My daughter loves PBSkids and disney junior. She receives a better experience using those websites through my playbook, then with my wifes Ipad (which was giving to her by her brother who is a huge Apple fan). I laugh at all the fools who own a Apple product. Unless your a 2%'er, I doubt they any emergency savings set aside for 6-months, or $ their child's education and for their own retirement. As the statistics demonstrate, the average American has around $50,000 in an IRA approaching retirement, well short of what is required. In the real world, only the top 5% of the population has the economic feasability to buy a Apple product without significantly affecting their ability to make contributions towards retirement and save $ for other more important goals such as home ownership, home repairs, education etc. With the average national salary being around $40,000, a net value well less thanks to Federal, State and Payroll taxes, the average American would be spending almost 3% of their earnings on one device that will last for a few years. Apple has created millions of fools. As soon as you buy an Ipad, it loses more value then what it would cost to buy a playbook. The reality is, most people will still need either a laptop or desktop in addition, so the numbers are that much worse. When demand begin's to falter as Apple will never be able to maintain this level of consumption for a product selling at a premium, Apple will become the next Netflix, RIMM, NOK, Motorola, Lenova, HP, the list goes on...
    27 Sep 2012, 07:46 PM Reply Like
  •  
    blahhh blahhhh blahhh
    Stick a fork in it already!

    RIMM will be a small player compared to the Apple-Google-Samsung dynasty.
    28 Sep 2012, 10:05 AM Reply Like
  •  
    you'll be proven wrong just wait and see but don't feel sad you will have a lot of company.
    28 Sep 2012, 10:12 AM Reply Like
  •  
    Dead cats can bounce pretty high.
    27 Sep 2012, 05:08 PM Reply Like
  •  
    Thaey cash horde grows another $100 million this quarter and people still call it a dead cat.
    27 Sep 2012, 05:23 PM Reply Like
  •  
    and big cats can drop big
    27 Sep 2012, 05:28 PM Reply Like
  •  
    Sounds like they are treading water reasonably well considering the lack of new product, and the cash burn has stopped. If the BB10 is in fact all it RIM makes it out to be, the fundamentals of the business kick in. I just think there are enough loyal BB users waiting this thing out that the surge in sales in Q1 13 will be huge, and they will be dumping old inventory at discount prices in the meantime.
    27 Sep 2012, 05:53 PM Reply Like
  •  
    Metaphorically speaking, RIMM died the afternoon of June 22, 2012 when Maria Bartaromo announced she was dropping her Blackberry in favor of an iPhone. Obviously, it's just one customer. However, anyone who didn't think that her explanation spoke volumes for many other Blackberry users should think again.

    Research in Motion may have temporarily halted the bleeding, but this company is on life support and the prognosis is negative. RIMM ships 7 million phones during a full quarter and Apple sells that many over a weekend. It doesn't take a genius to see the writing on that wall. Still, I'm sure I'll get ripped by the loyal Research in Motion owners who still believe. However, I think it's pretty obvious...

    RIMM = R.I.P.
    27 Sep 2012, 06:29 PM Reply Like
  •  
    so unless a business is as big as apple, it should just give up?

    there's nothing wrong with a smaller, leaner RIMM - current market cap is about 1% of apple's. if it can manage to stabilize and make 5 or 10% as much money as apple, current RIMM shareholders will be fine.
    27 Sep 2012, 06:43 PM Reply Like
  •  
    0.5% of Apple's actually.
    27 Sep 2012, 07:13 PM Reply Like
  •  
    Nowhere in my post did I say that. However, where is the proof that the current management team is actually capable of a orchestrating any kind of remarkable turnaround? RIMM management has been basically known for being clueless over the last 3 years. Now they are talking about the fall of 2013 as a launch for a new product line, right? The fall of 2013? This company is already 2-3 years behind the present Samsung and Apple curve on product releases right now and they are pointing toward the fall of 2013 as the savior date? I suppose anything is possible, but I wouldn't invest in that scenario.

    Companies come and companies go. I suppose people thought Palm was going to survive too - right up until the time it disappeared. RIMM has had terrible management and that team made some bad product decisions a few years ago and now they are suffering the consequences of seeing their stock price drop from the mid-80's to $8.00. That's just the facts. In my opinion, the best case for RIMM is if someone bought them out for their patent holdings.

    FYI - I have no positions in RIMM (short or long)
    27 Sep 2012, 10:06 PM Reply Like
  •  
    Fall of 2013 is for low end BB10 devices. Early 2013 is for the high end, which is one touch screen only device, and one square screen (720 by 720) device with a hardware keyboard. Mid 2013 is intended for mid level devices. Basically over the course of 2013, there will be numerous models released, which is a move to replace BB7 devices with BB10, though BB7 devices will still be for sale in some locations.

    http://bit.ly/PuhkXr

    Those are not actual devices, but it gives us an idea of marketing. Feel free to criticize that too. ;)
    27 Sep 2012, 10:19 PM Reply Like
  •  
    Only two financial numbers mattered, subscription were up, cash flow was positive. Stop looking backwards, RIM's success is BB10 and that's coming in Q1 2013.
    What's obvious is you haven't been doing any research on what RIM has been working on.
    27 Sep 2012, 11:29 PM Reply Like
  •  
    Another ignorant comparison of Palm to RIM. Please do some research before posting.
    27 Sep 2012, 11:32 PM Reply Like
  •  
    You're distorting the information a bit.

    Apple sells 5 million phones in a weekend after they launched the iPhone 5. That's the high point for Apple sales, while RIM is selling aging products ahead of a forthcoming launch. Apple is not going to sell 5 million phones in future weekends.

    A more fair comparison would be Apple's last quarter sales where Apple sold 26 million units. 7.4 million units is 28% of that, which isn't bad considering RIM's aging portfolio. I'd expect BB10 to boost sales from that level. I doubt they'll come close to selling as much as Apple, but they'll be quite valuable if they can cement a #3 position.
    28 Sep 2012, 12:14 AM Reply Like
  •  
    I wouldn't compare RIM to Apple at all, wait 18 months then maybe.
    28 Sep 2012, 10:14 AM Reply Like
  •  
    Soon Fairfax will own most of the shares and there will be no left to buy ;).

    BB10 = 10 Bagger stock
    27 Sep 2012, 07:49 PM Reply Like
  •  
    Just a few words..... BB tourch, BB9850, etc... again even if they come out with BB100 tomorrow do you think it can compete with NOKIA????? (lets not talk about APPLE) if you think they can compete THEY WOULD HAVE DONE it when APPLE came out with the iphone 2g. (ohhh I am sorry they came out with the BB tourch ?>?? something like that... it does not even matter)
    27 Sep 2012, 08:17 PM Reply Like
  •  
    Simple answer to that is that there have been more obsolete BB7 devices sold this year than Lumia Windows Phone devices.
    27 Sep 2012, 08:31 PM Reply Like
  •  
    In RIMMs world we probably call this a good result
    27 Sep 2012, 08:32 PM Reply Like
  •  
    pathetic...
    27 Sep 2012, 08:37 PM Reply Like
  •  
    you shouldn't be so tough on yourself ;)
    27 Sep 2012, 09:21 PM Reply Like
  •  
    Lets combine the bb7 + the low cost playbook = A heL oV a tool for your corp. employee, field rep.. Now add what eVa else the bb10 brings in. THis stock is well under valued at current price.
    27 Sep 2012, 09:03 PM Reply Like
  •  
    Since RIMM is heavily favored in Singapore/Asia, anyone think it will go up more tomorrow as the Asian fans get in on this?
    27 Sep 2012, 09:04 PM Reply Like
  •  
    dead cat bounce
    27 Sep 2012, 09:52 PM Reply Like
  •  
    I say hurray for the nay sayers; I'd just love for people to believe them, so I can buy in when the price drops...
    28 Sep 2012, 08:21 AM Reply Like
  •  
    Revenues went down 31% Y/Y and people are bidding the stock up? How sustainable is cost cutting in the long run?
    28 Sep 2012, 10:52 AM Reply Like
  •  
    Very, as long as it doesn't eat into profits...
    28 Sep 2012, 11:30 AM Reply Like
  •  
    Im not sure why people find it hard to accept that company that start to loss less will eventually come back, The bleeding has stopped, lets accept that and make $$$
    30 Sep 2012, 03:19 PM Reply Like
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