RIM Slashing Guidance and announcing layoffs
 

Technology Alert
from The Wall Street Journal


Research In Motion slashed its guidance and announced plans for layoffs, as the BlackBerry maker feels the heat from rival devices such as the iPhone and iPad.

Shares tumbled 15% to $30 in after-hours trading, after closing at $35.33 on the Nasdaq Stock market Thursday.

In the first quarter, RIM earned $695 million, or $1.33 a share, in line with the Thomson Reuters mean estimate of $1.32 and at the midpoint of RIM's latest guidance for earnings of $1.30 to $1.37 a share.

Revenue was $4.91 billion. Analysts were looking for revenue of $5.150 billion, according to Thomson Reuters.

RIM said its full-year earnings guidance is now $5.25 to $6 a share, well below the $7.50 it was previously expecting. Its second-quarter earnings and revenue guidance are also well below Street expectations.

BlackBerry Maker Cuts Guidance, Plans Layoffs - WSJ.com

Re: RIM Slashing Guidance and announcing layoffs
 

good time to buy stock..

Re: RIM Slashing Guidance and announcing layoffs
 

Unfortunately this doesn't come as a surprise. Such a shame.

Re: RIM Slashing Guidance and announcing layoffs
 

Begin death spiral

Re: RIM Slashing Guidance and announcing layoffs
 

Good grief.

Re: RIM Slashing Guidance and announcing layoffs
 

Tempted to buy at these levels...But I fear buying now is like trying to catch a falling knife

Re: RIM Slashing Guidance and announcing layoffs
 

Buying now would be a mistake. Catching a falling knife, blade first, while the handle was on fire might be a better description.

Re: RIM Slashing Guidance and announcing layoffs
 

Agreed. Sounds like RIM is ripe for the picking by another company, MS perhaps?

Re: RIM Slashing Guidance and announcing layoffs
 

Not likely. RIM still has plenty of cash on hand, at least at the moment.

Re: RIM Slashing Guidance and announcing layoffs
 

RIM

RIM needs to get things moving fast. The iPhone came out in 2007, not sure why they did nothing for so long

Re: RIM Slashing Guidance and announcing layoffs
 

I think this answers my question.

Everything That's Wrong With Research In Motion -- An Ex-Employee Tells All

Read more: Everything That's Wrong With Research In Motion -- An Ex-Employee Tells All


Everything That's Wrong With Research In Motion -- An Ex-Employee Tells All

Re: RIM Slashing Guidance and announcing layoffs
 

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.

Re: RIM Slashing Guidance and announcing layoffs
 

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.

Re: RIM Slashing Guidance and announcing layoffs
 

Until they "get it" continue to watch the knife fall.

This year was my 3rd at WES / BlackBerry World and I was surprised at how many people told me they were not planning to return next year in lieu of attending a wireless conference that covered much more than just BlackBerry. I have a feeling that our company plans to follow in that lead.

Its not just the handhelds market they are losing in but also the enterprise management segment as Good Tech, 3LM, Boxtone, etc. continue to offer similar management solutions for other platforms.

My bet is that someone like MS or Dell could possibly buy them up. Of course a cultural change is much needed at both of those companies too.

Re: RIM Slashing Guidance and announcing layoffs
 

Couldn't agree more!! Seems like there's a number of former BB users who would take great delight in seeing the demise of RIM. Sad.....

Re: RIM Slashing Guidance and announcing layoffs
 

And why do you think that is. Maybe because they saw RIM as lazy and unable to learn from the past [Palm]. Maybe they saw RIM's CEOs as arrogant and out of touch with the market. Maybe because they saw a platform that they loved fall into the toilet because of the above 2 reasons.

Re: RIM Slashing Guidance and announcing layoffs
 

I worked their about 3 years ago and it's amazing how arrogant Jim Basillie is. I watched him tear someone to pieces publicly simply for asking how RIM where go to keep ahead of the curve in light of the new enterprise security and provisioning features Microsoft where puting into Exchange. In his words Microsoft, Apple, HTC will never catch up, and will never compete.

Re: RIM Slashing Guidance and announcing layoffs
 

I'm not surprised. That's why HTC, Apple and Google are on the way up and RIM is on the way down. Jimmy and Mickey are both clueless buffoons living in the past.

Re: RIM Slashing Guidance and announcing layoffs
 

And you have nothing better to do than watch for news about them and take the time to comment on anything negative.

What does that say about you?

Enough already.......