Troubled BlackBerry-maker RIM announced quarterly results that were generally well received, although the company is still reporting losses as it works to deliver on its recovery plan.
Thorsten Heins, president and CEO of the company (pictured), noted: “Make no mistake about it, we understand that we have much more work to do, but we are making the organisational changes to drive improvements across the company, our employees are committed and motivated, and BlackBerry 10 is on track to launch in the first calendar quarter of 2013.”
Significantly, the company said that its cash, cash equivalents and investments increased by around US$100 million to US$2.3 billion – a metric that many analysts are monitoring closely.
The company’s numbers generally exceeded the expectations of analysts, many of whom have taken an especially pessimistic view towards the struggling smartphone maker.
For the quarter, the company reported a net loss of US$235 million, compared with a prior-year profit of US$518 million, on revenue of US$2.87 billion, down from US$4.17 billion.
However, compared with the previous sequential quarter, the loss more than halved (US$235 million compared with US$518 million), on revenue which increased by two percent (US$2.87 billion from US$2.81 billion).
As previously revealed, the BlackBerry subscriber base increased by around two million subscribers to approximately 80 million. During the quarter, the company shipped 7.4 million BlackBerry smartphones and 130,000 PlayBook tablets.
RIM acknowledged that moving forward, it “expects that there will be continued pressure on operating results for the remainder of the fiscal year based on the increasing competitive environment, lower handset volumes, increased marketing expense associated with the launch of BlackBerry 10, and some impact from pressure by customers to reduce RIM’s monthly infrastructure access fees”.
It also said that it will continue to invest in “targeted marketing and sales programmes” to drive sales of its BlackBerry 7 products ahead of the BlackBerry 10 launch.
In RIM’s conference call, Heins said that it has “aggressively” launched new devices in markets including South Africa, Saudi Arabia, the UK and Indonesia, as well as launching major upgrade programmes in Canada, the US and the UK.