Thursday, March 29, 2012

RIM (RIMM) Aims to Avoid Fifth Straight Sales Miss as CEO Seeks Rebound

Uploaded by on Mar 28, 2012
Research In Motion Ltd. (RIMM), having missed estimates for four straight quarters, is seeking to avoid another disappointment tomorrow as investors look for signs that its new chief's turnaround plan is beginning to take hold.

RIM shares have tumbled 16 percent on average the day after earnings since March 2011 according to a Bloomberg report. Analysts predict the maker of BlackBerry smartphones will say sales fell at the fastest pace in a decade, causing the Waterloo, Ontario-based company to miss its own forecast for the three months through March 3.

The quarterly results are the first for Thorsten Heins, the German-born chief executive officer who took over in January and has vowed to do something "dramatically different" to reverse the sales slump. For now, Heins has to rely on an aging product lineup to win back users lost to Apple (AAPL) Inc.'s iPhone and devices running Google Inc. (GOOG)'s Android software, before a new generation of BlackBerrys makes its debut later this year.

Sales probably declined 19 percent to $4.51 billion last quarter, the average of estimates compiled by Bloomberg. On Dec. 15, RIM predicted $4.6 billion to $4.9 billion. Profit per share excluding one-time items probably fell by more than half to 81 cents, the low end of RIM's forecast of 80 cents to 95 cents.
RIM may also give a forecast for this quarter. Analysts project further declines, with sales dropping to $4.26 billion and earnings sliding to 66 cents a share.

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