RIM warns of Q1 loss, hires bankers to evaluate changes

RIM says it expects to log an operating loss for the current quarter amid competitive pressures

Research In Motion has warned that it expects an operating loss for the current quarter and has hired two investment banks to help it study alternative company strategies that might include licensing its OS.

The troubled BlackBerry maker said competitive pressures were hurting its business and that the current quarter, which ends June 2, is likely to end in a loss.

"The on-going competitive environment is impacting our business in the form of lower volumes and highly competitive pricing dynamics in the marketplace," RIM said in a press release on Tuesday. On its last quarterly earnings call, on March 29, the company said it would stop giving quarterly forecasts but warned that it expected pressure on earnings for the rest of the year. For the fourth quarter, which ended March 3, RIM reported a net loss of US$125 million.

Also on Tuesday, RIM said it had hired J.P. Morgan and RBC Capital Markets after the last earnings call to review its performance. The investment banks will help RIM with an ongoing strategic review that the company described on the March call. The bankers will help RIM "evaluate the relative merits and feasibility of various financial strategies, including opportunities to leverage the BlackBerry platform through partnerships, licensing opportunities and strategic business model alternatives," the company said.

RIM has struggled against the rise of Apple's iOS and Google's Android as the dominant mobile platforms. Its phone shipments plunged 21 percent in the fourth quarter, and though sales of its PlayBook tablet rose to 500,000 units, they were still dwarfed by quarterly iPad sales exceeding 10 million.

The news came amid reports that RIM is planning to lay off as many as 2,000 employees. In its Tuesday press release, RIM said there would be "significant spending reductions and headcount reductions throughout the remainder of the fiscal year," without giving any details.

RIM plans to announce its results for the current quarter on June 28.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?