Seeking Alpha

Desperate to keep BlackBerry 10 from being delayed any further, Research In Motion (RIMM) is...

Desperate to keep BlackBerry 10 from being delayed any further, Research In Motion (RIMM) is restricting summer vacation time and mandating 6-day work weeks at its Ottawa facilities, the Ottawa Citizen reports. That won't do much to boost morale at a company implementing massive layoffs in response to crumbling sales.
From other sites
Comments (49)
  • redwoodsman
    , contributor
    Comments (112) | Send Message
     
    Incentives should be given for employees who are putting in extra time and cutting their vacations. Any thing that will speed up the launch date is imperative for RIM to succeed.
    5 Jul 2012, 04:07 PM Reply Like
  • bedrock65
    , contributor
    Comments (637) | Send Message
     
    labour laws state working over 44 per week requires OT compensation or lieu time.

     

    The author of this comment is very uninformed, QNX programmers are not facing layoffs. Programmers from the legacy systems face possible layoffs.
    5 Jul 2012, 04:36 PM Reply Like
  • sanaUSA
    , contributor
    Comment (1) | Send Message
     
    Yes they will get CERTIFICATE!!!!!!!!
    5 Jul 2012, 04:45 PM Reply Like
  • RealMrBean
    , contributor
    Comments (67) | Send Message
     
    Smacks of desperation...

     

    By Q1/2013 it will have taken RIM almost 3 years to port an already existing QNX onto their first BB10 phone - simply pathetic!

     

    First it was the chipset, then the software, then the sheer volume of integration. I am wondering what excuse they will find next. Maybe the workers at the Chinese manufacturing lines not willing to put in 80 hour weeks.

     

    What this company needs is people who understand the market dynamics and trends, and software development, not guys that show their terminal denial in press interviews.
    5 Jul 2012, 07:25 PM Reply Like
  • Stock Truckin
    , contributor
    Comments (47) | Send Message
     
    This is not at all that unusual in the IT industry. They will be well compensated for their time, especially if the BB10 release is executed well and puts RIM back in the motile battle.
    7 Jul 2012, 08:24 AM Reply Like
  • Roberto Reyes-Batlle
    , contributor
    Comments (48) | Send Message
     
    Sorry to say that will never happen. They missed their opportunity several times. IF it did happen, it would be the last nail in the coffin.
    8 Jul 2012, 12:58 PM Reply Like
  • Stock Truckin
    , contributor
    Comments (47) | Send Message
     
    Sorry, but it will happen. The BB10 will be released in early 2013, and if it is a well executed release along with an outstanding product, things will turn around for RIM. They still have no debt, and are still selling lots of product. They do this right and they will be back.
    8 Jul 2012, 01:16 PM Reply Like
  • Ronin.
    , contributor
    Comments (1487) | Send Message
     
    I agree Red, keeping morale up and productivity high is critical for projects. It is up in the air whether they will get their act together with BB10, but incentives wouldn't hurt...extended hard pushes to get projects out are common with software development, not a sign that things are bad...but to get real, we don't need bad omens to know that there are problems with BB10...Thorsten's own words and the delay already tell us that things are not well at the moment...
    9 Jul 2012, 03:50 PM Reply Like
  • Roberto Reyes-Batlle
    , contributor
    Comments (48) | Send Message
     
    I seriously doubt that the company will be around then. No company, no BB10!
    9 Jul 2012, 03:53 PM Reply Like
  • Ronin.
    , contributor
    Comments (1487) | Send Message
     
    Making absolute pronouncements about what WILL happen is folly. The truth is, we don't know whether or when products will come out. It is clear that even the RIM leaders can't say things with absolute certainty. Will RIM exist? Probably, unless someone buys them and takes it apart. They probably will even get BB10 out eventually, but that is an opinion, not a statement of fact...
    9 Jul 2012, 04:02 PM Reply Like
  • bedrock65
    , contributor
    Comments (637) | Send Message
     
    Ronin

     

    have a read of a Q&A between Al Sacco (CIO.com) and Thorstein Heins. Don't know if it was intentional or a slip of the tongue but the CEO says BB10 all touch device will be launched in January 2013.
    9 Jul 2012, 04:22 PM Reply Like
  • Ronin.
    , contributor
    Comments (1487) | Send Message
     
    Bedrock,
    I am saying that it is a bit more uncertain than that, when there are barriers to be overcome, and the company's recent history over the past couple of years on timely releases has been not so good. Jan is Thorsten's goal...not necessarily his outcome...

     

    The more important point is that if there is a level of uncertainty at RIM, then our personal statements are much, much less certain. There is a middle ground between Truckin and Roberto, as both should be far less certain than their statements reflect. They are opinions, guesses, hopes...not certainties...
    9 Jul 2012, 05:23 PM Reply Like
  • Stock Truckin
    , contributor
    Comments (47) | Send Message
     
    There are certainties. RIM WILL NOT go out of business before the BB10 is launched. That is a certainty. The only thing that will stop the BB10 from coming out is RIM being bought and the buyer shelving it. But RIM does not want to be bought, so they won't be bought.
    10 Jul 2012, 12:15 AM Reply Like
  • Ronin.
    , contributor
    Comments (1487) | Send Message
     
    You think that many things are certainties, which is why over all these months, so many of your expectations have been dashed, and if you are really doubling down as often as you announce, your whole financial well-being is probably tied to RIM making a miraculous comeback. As you know, I am skeptical, and I have taken the ride down on RIMM on the opposite side of the trade than you. It is not about disliking RIM, it is about being a realist, recognizing the trend, and making that trend work for you...simple...
    10 Jul 2012, 12:21 AM Reply Like
  • Jeff Jackries
    , contributor
    Comments (96) | Send Message
     
    "You think that many things are certainties, which is why over all these months, so many of your expectations have been dashed"

     

    This is true, he was certain that BB10 would be released this year, and it would be the answer to everything. When that didn't pan out, he changed his tune to "It'll be released next year, and it'll be the answer to everything!" In other words, he keeps moving the goal posts and pretending it's all according to plan.

     

    The truth is, no one knows what's going to happen. RIM may decide to sell next week. The fact that they're saying the don't want to sell means nothing, of course they'd say that if they were looking to sell.

     

    I also find Stock Truckin's suppositions that RIM employees will be compensated with bonuses and whatnot hilarious, since there's absolutely no evidence that they're getting special treatment or compensation. And yet, to ST, it's "obvious." But then, I often don't see things that are obvious to ST, so maybe it's my shortcoming.
    10 Jul 2012, 01:36 AM Reply Like
  • Ronin.
    , contributor
    Comments (1487) | Send Message
     
    Yes Jeff, what's with you? Why don't you view the world that way? You would have "known" that it would never hit as low as $15 (wow, what sounded really bad then, really sounds fantastic now)..."known" that it would never drop below $10...known that BB10 would be out soon...

     

    I wonder if being so certain about things makes life simple...I bet it makes investment decisions easy...
    10 Jul 2012, 01:51 AM Reply Like
  • bedrock65
    , contributor
    Comments (637) | Send Message
     
    I too, when RIM announced a new OS and current BlackBerry's would not be upgradeable it spelled a temporary disaster. My thesis was who would ever want to buy a soon to be obsolete device?
    I expected the decline but not to the current extent, below book value and tangible book value! That's the crazy part, when I see a company like Amazon at its current price I just shake my head, the market must be out of touch with reality.

     

    The market is pricing RIM to go out of business plain and simple, if BB10 is as good as I think RIM will rebound. At these prices its worth the risk.
    10 Jul 2012, 07:43 AM Reply Like
  • Roberto Reyes-Batlle
    , contributor
    Comments (48) | Send Message
     
    Problem is, they've been delaying and postponing the products that are supposed to save their existence, on and on! I've been hearing this over and over! The situation gets worse and worse, and no saving products no saving products! It's like a broken record!
    10 Jul 2012, 09:11 AM Reply Like
  • Stock Truckin
    , contributor
    Comments (47) | Send Message
     
    @JJ: I am in IT and have been for years. No company would force workers to work overtime without compensation. It's not hilarious, it's reality. Plain and simple. This is the way it is in IT.
    10 Jul 2012, 09:12 AM Reply Like
  • Stock Truckin
    , contributor
    Comments (47) | Send Message
     
    Not sure what you are referring to regarding doubling down and my expectations over a few months. I do not own RIM (yet). I am simply saying certain things ARE certain, unless some act of God takes place. RIM will release the BB10. The only thing that will change that is if they get bought and that company stops it.
    10 Jul 2012, 09:15 AM Reply Like
  • Stock Truckin
    , contributor
    Comments (47) | Send Message
     
    They've delayed it once. From end of this year to first quarter next year. That's not on and on. Once out, things should pick up for RIM. You don't have to believe. It will work out though.
    10 Jul 2012, 01:23 PM Reply Like
  • Ronin.
    , contributor
    Comments (1487) | Send Message
     
    Yep...broken record....

     

    Meanwhile, RIMM is playing "limbo"....how low can we go? Wow, even lower?
    10 Jul 2012, 01:25 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    Their incentive is a job...if this does not succeed...they are toast...
    5 Jul 2012, 04:13 PM Reply Like
  • Dale2100
    , contributor
    Comments (124) | Send Message
     
    This could backfiire on RIM. It seems leadership is now punishing the workers by making them cancel vacations and put in 6 days per week. What is the incentive for them (other than losing their job, which may be inevitable anyway)?

     

    There are other ways to rally teams around a common goal, even one as critical as this. Again RIM misses the correct opportunity, and opts out of a means to resurrect their standing as a advanced technology company.

     

    This is truly a bad, BAD omen.
    5 Jul 2012, 04:16 PM Reply Like
  • bedrock65
    , contributor
    Comments (637) | Send Message
     
    I guess you have never worked on an IT project.

     

    Restricting vacation and working extra time is very common when working on a major project.
    5 Jul 2012, 04:41 PM Reply Like
  • d-b-m
    , contributor
    Comments (62) | Send Message
     
    There are many high tech firms that have an unwritten, work 6 days a week, rule. Either that or receive a poor performance report - and the result would be less of a chance for a bonus, promotion, or to have a poor performance report (thus increasing the chance of being laid off and making your chances of being hired elsewhere worse). One reason you see fewer people entering the high tech field, and fewer engineers encouraging their children to do the same. But then again engineers in S Korea, China and Eastern Europe are pretty much mandated the same thing.
    5 Jul 2012, 04:48 PM Reply Like
  • Dale2100
    , contributor
    Comments (124) | Send Message
     
    Quite the contrary, I've led hundreds of IT projects and never mandated overtime to resolve poor planning and execution. In fact, most teams had WANTED to work overtime and I've asked them to be sure to NOT let the project become all consuming, which we all know leads to poor quality, burnout, and turnover.

     

    So, yes, I've "...been there and done that..." for over 30 years.
    9 Jul 2012, 08:19 AM Reply Like
  • Stock Truckin
    , contributor
    Comments (47) | Send Message
     
    Poor planning and execution is only ONE of the reasons IT projects get delayed. And requesting/forcing overtime is a common solution. Those in IT have seen this on many projects.
    9 Jul 2012, 08:25 AM Reply Like
  • bedrock65
    , contributor
    Comments (637) | Send Message
     
    your experience is not the norm.
    9 Jul 2012, 11:30 AM Reply Like
  • Stock Truckin
    , contributor
    Comments (47) | Send Message
     
    @bedrock: Are you referring to me or Dale? I assume Dale, as his experience is most definitely not the norm in the IT industry.
    9 Jul 2012, 12:02 PM Reply Like
  • bedrock65
    , contributor
    Comments (637) | Send Message
     
    replying to Dale
    9 Jul 2012, 04:24 PM Reply Like
  • Roberto Reyes-Batlle
    , contributor
    Comments (48) | Send Message
     
    I think RIM is long gone. It's just a matter of time. Not long. I have a friend who works in a rather high position here in Florida. I have asked him what he thinks about his company's horrible performance of late, and all he tells me is that "the markets are unfair to RIM". Things like that. The company is fabulous, the products are fantastic, the iPhone is no good, etc.

     

    I've bitten my tongue, and so far have avoided telling him he better starts looking for a job!
    6 Jul 2012, 12:49 AM Reply Like
  • Matithyahu
    , contributor
    Comments (95) | Send Message
     
    You're a good friend. I'm sure he doesn't know what he's talking about, but is in denial. It's better not to tell him--why spoil his good cheer? Let the cold hand of fate enlighten him. It may shock him into some self realization, which might be really therapeutic for him as he looks for a new job.

     

    In addition, I think that RIM is doing a good job of getting BB10 ready to market, but a bad job of speaking to the public.

     

    M@
    6 Jul 2012, 12:55 AM Reply Like
  • Roberto Reyes-Batlle
    , contributor
    Comments (48) | Send Message
     
    The whole company is in denial, together with the customers they’ve managed to keep!

     

    Mark my words: BB10 will never make it to market, and if it does, it will be the last nail in the coffin!
    6 Jul 2012, 05:28 AM Reply Like
  • Jeff Jackries
    , contributor
    Comments (96) | Send Message
     
    Wow, is your friend named Stock Truckin? He purportedly works in IT (although I'm not sure what IT has to do with cell phones) and he sounds exactly like that - RIM Is doing great, their products are great, and everyone is just being a bunch of big meanies to good ol' RIM.
    9 Jul 2012, 03:36 PM Reply Like
  • bedrock65
    , contributor
    Comments (637) | Send Message
     
    why so much negativity towards RIM?
    I would think consumers would want as many options available? it would lead to better pricing, better innovation and ultimately a win for everyone. Why the hate on for RIM?

     

    btw Thorstein already spilled the beans, BB10 will be launched in January 2013.
    9 Jul 2012, 04:31 PM Reply Like
  • Roberto Reyes-Batlle
    , contributor
    Comments (48) | Send Message
     
    No hate at all towards RIMM. Sure consumers want as many options as possible, but who wants options that were great 5 years ago? Competition is excellent, but how can RIMM compete with products not fit for today?
    9 Jul 2012, 04:49 PM Reply Like
  • Roberto Reyes-Batlle
    , contributor
    Comments (48) | Send Message
     
    Yes Stock Truckin. My friend is so in touch with reality, he'll soon be without a job. How's that for being in touch? RIMM has been announcing a very good product for too long. They had plenty of chances to do so, but now it's probably too late.
    9 Jul 2012, 04:51 PM Reply Like
  • Ronin.
    , contributor
    Comments (1487) | Send Message
     
    Roberto,
    I look at your info about your friend to be bad news. If one hopes that RIM gets back on track, then that would mean that the narrative given to their employees is not an external blame game.

     

    The leaders should be focusing on a realistic assessment of what has brought RIM to this point, and a strong focused plan to rally around. It is a possibility that there is not the humility in the organization to admit to their failings, and they seek instead to give cover to themselves. That does not bode well for fixing the things that are going wrong within RIM.
    9 Jul 2012, 05:35 PM Reply Like
  • bedrock65
    , contributor
    Comments (637) | Send Message
     
    Well I am back from Waterloo and the AGM was a non event. They just regurgitated the same information from the past few weeks.
    One thing is for certain, JP Morgan and RBC are not providing guidance on a sell scenario, it BB10 or bust.
    I did come away even more optimistic about BB10, it just may differentiate itself from the competition.
    10 Jul 2012, 07:30 PM Reply Like
  • Ronin.
    , contributor
    Comments (1487) | Send Message
     
    Thanks Bedrock...I appreciate the feedback...Heins is resistant to selling for now...

     

    What was the mood of shareholders?
    10 Jul 2012, 08:20 PM Reply Like
  • bedrock65
    , contributor
    Comments (637) | Send Message
     
    For the most part apathetic. There were a couple that questioned Heins compensation and lack of CEO experience and another questioned the lack of oversight by the Board over the past two years.

     

    My overall feeling was that RIM believes very strongly about BB10 and it will differentiate it from the competition. They are keeping information to themselves however BB10 information will flow in Q4.

     

    The concern right is cash burn, Q2 they reiterated no cash burn except for possible severance related charges. BB10 marketing will ramp up in Q4, they'll need cash to build, market and sell the devices.
    10 Jul 2012, 08:45 PM Reply Like
  • Ronin.
    , contributor
    Comments (1487) | Send Message
     
    I've felt that the most likely path to quick stock appreciation for RIM bulls is a sale...but it sounds like its BB10 or bust for them, and any fruits of that will be a long wait...
    10 Jul 2012, 08:58 PM Reply Like
  • Stock Truckin
    , contributor
    Comments (47) | Send Message
     
    From what I heard, the shareholders were generally pleased with the meeting and the answers they received. And the fact that they are not selling is great. BB10 looks to be a superior phone, and will bring RIM back from the brink. All in all, a very good day for RIM (relatively speaking). Heins just needs to be given a chance. That is not 2 months, 3 months, or 6 months. That is until the BB10 comes out + 3 quarters.
    10 Jul 2012, 08:58 PM Reply Like
  • Ronin.
    , contributor
    Comments (1487) | Send Message
     
    You an spin it that way IT, but for the sake of those who need to escape a bad position, not selling means a long wait, probably more stock slide, and an uncertain outcome, waiting for release and for it to really make a difference to the bottom line means a good year or more... but I know that you don't care about any of that, so just pump away like usual...
    10 Jul 2012, 09:13 PM Reply Like
  • bedrock65
    , contributor
    Comments (637) | Send Message
     
    Depends what you mean how long.
    10 Jul 2012, 10:24 PM Reply Like
  • Stock Truckin
    , contributor
    Comments (47) | Send Message
     
    Thanks Ronin. We agree, RIM is a good investment now. I am still waiting to buy in, but will before the BB10 is released. Waiting for the release of the BB10 is the right attitude. Good for you. Looking forward to seeing it released and RIM making a full comeback.
    10 Jul 2012, 10:51 PM Reply Like
  • Jeff Jackries
    , contributor
    Comments (96) | Send Message
     
    "From what I heard, the shareholders were generally pleased with the meeting and the answers they received."

     

    That's certainly one way to look at it. another way to look at it is 30% of shareholders withheld their votes for Heins. That's not exactly a rousing endorsement, but I'm sure you see it that way. Because hey, 70% of shareholders voted, amirite?

     

    http://bit.ly/OZOIHa
    11 Jul 2012, 12:22 AM Reply Like
  • Stock Truckin
    , contributor
    Comments (47) | Send Message
     
    Spin it however you want. Not voting does not mean voting against. It means on the fence. amirite? Of course I am. The overall meeting was positive for RIM. You don't have to like RIM or invest in them. But you will once you've missed the boat. I will be buying into RIM before the BB10's are released, now that it is a certainty that it will happen.
    11 Jul 2012, 12:56 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector