Originally Posted by Tillia
Projections were off but compared to last year at this time they are up year over year. I always find it interesting how people run with a story that if you really dig into the details you find that projections were off. The company is still raking in billions of dollars and that is nothing to sneeze at. I'd say the explosive growth was bound to level off at sooner or later. It happens to every company and RIM's growth rate has been crazy!
Is there a lot of work ahead of them. Yes. Do they need to take a real close look at everything and retool the machine. Definately. But the sky isn't falling people. It really isn't.
They're not leveling off, they're declining and projecting further declines.
"Revenue for the first quarter of fiscal 2012 was $4.9 billion, down 12% from $5.6 billion in the previous quarter..."
"Revenue for the second quarter of fiscal 2012 ending August 27, 2011 is expected to be in the range of $4.2-$4.8 billion."
Net income was down even more. Less than the prior year even with higher revenue.
"Net income for the quarter was $695 million, or $1.33 per share diluted, compared with net income of $934 million, or $1.78 per share diluted, in the prior quarter and net income of $769 million, or $1.38 per share diluted, in the same quarter last year."
"Earnings per share for the second quarter are expected to be $0.75-$1.05 diluted."
I listened to an earnings conference call back when I owned the stock and it was the worst conference call I've ever heard. One of the two CEOs was on and he seemed way too engineering oriented. Also seemed a little out of touch with what was going on with products and didn't instill much confidence overall.