RIM says Q2 forecast is lower than expected

16.06.2011
Research In Motion missed analysts' lowered revenue forecasts for its fiscal first quarter and said its outlook for the second quarter was lower than expected, as it reported its first-quarter results Thursday.

Revenue for the first quarter, which ended May 28, was US$4.9 billion, below the consensus forecast of $5.1 billion from analysts polled by Thomson Financial. The analysts' forecasts reflected a cut in RIM's own forecast, which was announced in late April.

Also on Thursday, the company announced a cost-cutting program that will include a headcount reduction. It expects to begin the program in the second quarter and benefit from it beginning in the third quarter.

RIM's net income for the first quarter was $695 million, or $1.33 per share, just ahead of the analysts' forecast of $1.32. However, the income figure was down from $769 million, or $1.38 per share, in the same quarter last year.

RIM said it sold about 500,000 BlackBerry PlayBook tablets in the quarter, following the device's launch on April 19.

For the current quarter, ending Aug. 27, RIM expects revenue in the range of $4.2 billion to $4.8 billion and earnings per share between $0.75 and $1.05, excluding one-time charges.