RIM Q2 earnings beat expectations, people still buying PlayBooks
BlackBerry maker RIM has released its Q2 earnings reports on Thursday and while it shows that the company lost more than $235 million in the last 90 days it was much better than the markets expected, sending the company's shares up by 18 per cent.
In what continues to be a roller-coaster time for the Canadian company, Research In Motion has detailed that in the last 90 days it has sold 7.4m BB7 devices, and 130,000 PlayBook tablets. Both sales numbers are down on the previous quarter, but both numbers where above what analysts expected.
The result means that BlackBerry will be in a stronger financial position than previously thought to launch BB10 at the start of the year, even though the company is predicting it will lose money again next quarter, as it continues to restructures itself.
"Despite the significant changes we are implementing across the organisation, our second quarter results demonstrate that RIM is progressing on its financial and operational commitments during this major transition,” said Thorsten Heins, President and CEO.
“Subscribers grew to approximately 80 million global users, revenue grew sequentially from the first quarter, cash, cash equivalents, short-term and long-term investments increased by approximately $100 million to $2.3 billion, and carriers and developers are responding well to previews of our upcoming BlackBerry 10 platform.
"Make no mistake about it, we understand that we have much more work to do, but we are making the organisational changes to drive improvements across the company, our employees are committed and motivated, and BlackBerry 10 is on track to launch in the first calendar quarter of 2013."
A lot of the company's success is to do with strong sales in emerging markets such as Indonesia, Venezuela and South Africa. The US accounted for 22 per cent of sales, down from 25 per cent in the previous quarter, while the United Kingdom and Canada saw sales improve.
In a Q&A session on a conference call after the earnings announcement, Heins also confirmed the company hoped to have mid-tier BlackBerry 10 devices on the market by Autumn 2013, and possibly a low-tier budget device before the end of 2013.
That news is likely to be well received by shareholders wondering how quick the current user base will be able to move into the company's new operating system and phones that run it.
Heins also confirmed that the company would continue to support BB7 devices.