RIM's Q2 FY2010 Profits Sink

Waterloo, Ontario-based mobile phone maker Research In Motion announced on Thursday, September 24, 2009 its financial results for the second quarter of the fiscal year 2010, and posted revenues of 3.5 billion, up 37 percent compared to the same quarter a year ago. Even so, the company's earnings were only of $475.6 million, or 83 cents per share, marking a decline of 4 percent year on year, from the $495.5 million earnings, or 86 cents per share, it posted for Q2 FY2009.

The Canadian handset vendor also announced that it managed to add only 3.8 million new subscribers, which only rises to the bottom of its previous forecasts. According to RIM, although it launched two new mobile phones in the time frame, namely the BlackBerry Tour 9630 and the BlackBerry Curve 8520, the nature of these devices drove the slower subscriber additions. On the other hand, RIM's BIS user number has been on a steady growth path.

The company's revenues for the three-month period failed to come in line with analysts previsions of $3.63 billion. Based on the lower results for the period, RIM announced that its revenues for the third fiscal quarter should range from $3.6 billion to $3.85 billion, a forecast also placed below the $3.95 billion in revenues analysts stated previously the company might register.

When it comes to the third quarter, RIM also said that it expected for a number of 9.2 million devices to be shipped in the time frame, and that the number should increase as soon as more lower-end handsets come to the market straight out of its labs. The company has also been rumored to plan on launching two higher-end phones before the end of the ongoing calendar year, namely the Storm 2 and Bold 2, and their presence on the market should also help RIM see improved financial results. Other details from the company's financial call conference can be found here.