RIM Reports Fiscal Fourth Quarter Earnings: Revenue Of $4.2 Billion, Down 19% From Previous Quarter

Posted on Mar 30 2012 - 5:13am by Editorial Staff

RIM has announced its revenue for the fourth quarter of fiscal 2012 was $4.2 billion, down 19% from $5.2 billion in the previous quarter and down 25% from $5.6 billion in the same quarter of fiscal 2011.  The revenue breakdown for the quarter was approximately 68% for hardware, 27% for service and 5% for software and other revenue.  During the quarter, RIM shipped approximately 11.1 million BlackBerry smartphones and over 500,000 BlackBerry PlayBook tablets.

The Company’s GAAP net loss for the fourth quarter of fiscal 2012 was $125 million, or $0.24 per share diluted, compared with GAAP net income of $265 million, or $0.51 per share diluted, in the prior quarter and GAAP net income of $934 million, or $1.78 per share diluted, in the same quarter of fiscal 2011.  Adjusted net income for the fourth quarter was $418 million, or $0.80 per share diluted.

Adjusted net income and adjusted 2 diluted earnings per share for the fourth quarter exclude the impact of pre-tax charges of $355 million which are predominantly non-cash ($346 million after tax) for the impairment of goodwill and $267 million ($197 million after-tax) for an inventory provision taken primarily on certain BlackBerry7 products.

CEO Thorsten Heins said he was “very excited about the prospects for the BlackBerry 10 platform,” which the company is counting on to revitalize its offerings when it’s released in the second half of this year. In the meantime, RIM will be looking at “increased management accountability.”

Highlights:

  • $2.1 billion in cash, cash equivalents, short-term and long-term investments at the end of the quarter, which increased by approximately $610 million in the quarter
  • Cash flow from operations of approximately $1.1 billion, up from approximately $900 million in Q3
  • Revenue of $4.2 billion, down 19% from the third quarter
  • GAAP net loss in Q4 of $125 million or $0.24 per share diluted; adjusted net income of $418 million or $0.80 per share diluted
  • BlackBerry smartphone shipments of 11.1 million in Q4, down 21% from Q3
  • RIM to discontinue providing specific quantitative guidance
  • RIM provides update on organizational changes

Listen to the full audio of the earnings call below:

(Image Source: RIM logoFeatured Image)

About the Author
Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.