Research In Motion (RIM) on Thursday evening posted a $518 million net loss for its first fiscal quarter of 2012, representing a 33 percent drop in revenue over the previous quarter and 43 percent decline from one year ago. It was not the financial picture RIM wanted to paint, but certainly the one many were expecting, at least to an extent. Nevertheless, RIM's stock is taking a beating, trading for around 15 percent less than prior to the announcement.
The straight up numbers weren't the only sad story the Canadian company told investors. RIM, which is hedging its bets on BlackBerry 10, said that the first smartphones to run on the upcoming platform won't see the light of day until next year, thus missing the all-important holiday shopping season.
"Our first quarter results reflect the market challenges I have outlined since my appointment as CEO at the end of January. I am not satisfied with these results and continue to work aggressively with all areas of the organization and the Board to implement meaningful changes to address the challenges, including a thoughtful realignment of resources and honing focus within the Company on areas that have the greatest opportunities,” said Thorsten Heins (PDF) , President and CEO. “Our top priority going forward is the successful launch of our first BlackBerry 10 device, which we now anticipate will occur in the first quarter of calendar 2013."
Mr. Heins expects BlackBerry 10 to deliver a "ground-breaking next generation smartphone user experience," and those lofty expectations are part of the reason for the delay.
"RIM's development teams are relentlessly focused on ensuring the quality and reliability of the platform and I will not compromise the product by delivering it before it is ready," Heins added.
The late late launch may sting investors, who are stinging back by offloading RIM's stock at discounted prices, but in the long run, it's probably better that RIM flush away any bugs rather than repeat the launch of a half-baked product, as many viewed the PlayBook tablet when it first came out.
Image Credit: Research In Motion