RIM posts Q3 results: Revenue of $2.7 billion and lower subscriber numbers

Daniel Bader

December 20, 2012 4:39pm


RIM has posted its third quarter fiscal 2013 results and, while still trending downwards, immediate concern for the company’s long-term health has been somewhat assuaged. This is the last quarter without a new handset, though the newly-leaked BlackBerry Z10 could launch close to the end of the company’s fourth quarter.

Revenue was down 5% from the previous quarter to $2.7 billion (all numbers CDN), and down nearly 50% from a year ago, when revenue was a relatively flush $5.2 billion. The company posted a net loss of $114 million, or 22c per share, which was significantly lower than its $235 net loss from last quarter. In other words, the bleeding has slowed but not stopped.

The company plans to invest heavily in marketing in the coming quarter, with high expectations for its BlackBerry 10 launch on January 30th. The first handsets are planned for sometime in February, though specific dates are not yet known.

RIM’s subscriber base now sits at 79 million, down over a million from the previous quarter. Though specific numbers have not been provided, the net loss is likely due to continued purging of the BlackBerry platform in North America, with significant gains in Africa and the Middle East. The company sold 6.9 million smartphones and 255,000 PlayBooks this quarter; that’s 500,000 fewer smartphones and 125,000 more tablets compared to last quarter.

RIM’s cash balance has increased to $2.9 billion this quarter as it continues to iterate on its Cost Optimization and Resource Efficiency (“CORE”) program. Although the company expects another net loss in Q4, CEO Thorsten Heins is bullish on the BlackBerry 10 launch. “More than 150 carriers are currently completing technical acceptance programs for the first BlackBerry 10 products,” he said in a statement.

As in previous quarters, good and bad news in equal measure for RIM. Are you bullish on the company’s future?

Source: Marketwire

  • 2cf

    GO RIM GOOOOOo!!

    • jimb

      rip rim

  • Raid

    At least we’re seeing a light at the end of the tunnel now.

  • grafikal

    Are you sure it’s not just the train?

  • lukeiphone

    I really hope BB10 is promising enough. This is their last chance.

  • Joe Jim Bob the third

    It was to be expected. I am kind of surprised they didn’t end up with bigger losses. We shall see what BB10 does for them come Jan 30th.

    • blizkh

      Screw Microsoft, I hope BBberry buys Nokia so that Nokia has a chance at revenge against Ballmer and Elop

  • skullan

    I still love you RIM :)

    As long as you price your phones appropriately and not iPhone level.

  • Dave

    Better than I expected…

  • 2c

    RIP RIM :D

  • coop3422

    @Skullan Not iphone level? I bet you it’s close. I’d be shocked if their first device is less than $599. They’re going to price it as a premium product, which means it’s going to need to really shine to gain back market share. I for one hope it’s everything they say it is. While I don’t want one (at least not in the firts year), competition is good for everyone.

    • skullan

      Yeah, it’s likely to be at least $700 dollars, but that will be for its flagship models. People like me, will wait for the low-mid range.

  • Dalex

    I’m still kicking myself for not having bought their shares when they were 6-7$ a month ago… ugh.. Would have kept them until January 29th and made a killing.

  • Porilaisten

    A drop in subscriber adds and shipments could be explained by people anticipating the release of BB10.

    • trytofa

      Rim is dim – dying in motion

  • Sgt.Romanov

    That will end in 40 days :)

  • Sweet

    RIM’s current situation reminds me of IBM’s situation in the PC industry in the late 80s and early 90s. IBM invented the PC, but was so focused on the business market they fell really far behind when the consumer demand for PCs exploded, and to many, IBM came very close to bankruptcy. IBM was able to get back on track, thanks to the superb work of Lou Gerstner. Let’s see if RIM can do it as well. From what I’ve seen so far, it looks like it will. I hope they do.

  • Tom

    I have reserved a BB10 device and look forward to it.

  • Money is everything

    Rimm is dead! Stock has collapsed in after hours trading. Rimm was, is, and always will be dead.

    • Jack

      Mr. Trump … a baby has thrown up in aisle 4. Get your mop and get back to work

  • Mike

    RIM the under dog.

  • MA

    You know things are dire for your company when your only saving grace is the valuable ‘people with no money’ demographic.

  • josh

    @Money is Everything…. You say RIM (RIMM/RIM.TO) dropped and is dead, if that was the case wouldn’t APPLE (APPL) be dead as well?, how do you explain dropping over $200 is less then 90 days?. RIM is surely on its last legs, but counting it out when its still the leading provider to millions of business is careless. Give then till this time next year before you call them dead or a turn around story.

  • Shaggyskunk

    This is absolutely fantastic! RIM may be criticized for many things – but KUDOS to RIM, for being able to see into the future and provide it’s 3rd quarter results for 2013 – – IN 2012!!!!! :-D

    • josh

      @Shaggyskunk… I would think by now people would have clued in. RIM’s Fiscal (tax) Year is not the same as Calendar Year. When reporting earnings you report based on your Fiscal Year.

  • mike

    Is this a $2.7 billion dollar loss ??? Cause that would make sense.

    And Rim better release BB10 devices at lower than the Nexus 4’s price point to even compete in February 2013. If they release BB10 devices and price it like they did with the piece of junk blackberry 9900 at $600. Rim will be going bankrupt. The price they should tag it should be around $250-300. Then they may do alright. Cause Blackberries are not high end so they shouldn’t be priced like a high end device.

    • anon

      BlackBerrys are high-end, therefore they will be priced at a high end price you t**t

  • happyboy

    What rim needs to do is have deep discounts on all there stocks right now so they prepare for there bb10 launch date and I hope bb10 will be the next big thing