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RIM faces job losses after income slump

BlackBerry manufacturer Research In Motion has released its first Quarter Fiscal 2012 results, showing a lower than expected drop in revenue.


According to a press release on the company’s website, net income for the quarter was down from $695 million (£431 million), compared to $934 million (£579 million) in the previous quarter and $749 million (£464 million) last year.

 

Jim Balsillie from RIM comments: “Fiscal 2012 has gotten off to a challenging start. The slowdown we saw in the first quarter is continuing into Q2, and delays in new product introductions into the very late part of August is leading to a lower than expected outlook in the second quarter.”

 

In the light of this, the company has also announced it will begin a process of streamlining operations, including an unspecified number of job losses and a reallocation of resources in Q2. Although Balsillie was optimistic about the future, pointing to the cost cuttings and forthcoming product releases as reasons for expected growth in 2012.

 

It wasn’t all bad news, international revenue grew 67% year on year and BlackBerry PlayBook sales were around 500,000 in North America.


RIM has had a tough time in the last 12 months. Blackberry still has a loyal fanbase, Apple iOS and Android handsets now dominate the market, especially at the higher end, and its latest releases – the Torch and the Bold were solid – rather than awe inspiring. Although a handset with the new QNX operating system – which worked so well on the PlayBook – could be very interesting.

 

Via: BBC
 

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