BlackBerry Posts Larger-Than-Expected Loss, Shares Plunge

z10nShares of BlackBerry maker Research In Motion slid in premarket trading Friday after the company posted a loss in the first quarter and failed to break out how many of its new BlackBerrys were sold.

Analysts were hoping to see how BlackBerry�s new touchscreen Z10 phone sold for a full quarter in the U.S. market. RIM only said it 6.8 million phones overall versus 7.8 million last year. That includes older models.

RIM�s new Blackberry 10 operating system is widely seen as critical to the company�s comeback.

Its shares dropped $2.57, or 17.8 percent, to $11.91 in premarket trading.

The Canadian company said that it lost $84 million, or 16 cents a share, in the three months ended June 1 on revenue of $3.1 billion. It lost $518 million, or 99 cents per share, on revenue of $2.8 billion a year ago.

Analysts expected RIM to earn 5 cents a share on revenue of $3.37 billion.

RIM also said it anticipates it will generate an operating loss in the second quarter.

�The smartphone market remains highly competitive, making it difficult to estimate units, revenue and levels of profitability,� RIM said in a statement.

Colin Gillis, an analyst at BGC Partners, said it�s tough for RIM because it�s hard to make money on handsets now.

�There are a lot of people that haven�t been able to make it happen. For all the talk about Apple and Samsung, there are companies like Nokia and HTC,� Gillis said.

Gillis said things look bleaker for the company and it�s going to continue to be a struggle.

(AP)

Leave a Reply

Popular Posts