By ROMA LUCIW, Globe and Mail Update with CP
Research In Motion Ltd. trimmed financial forecasts for 2003 Thursday, blaming delays in the introduction of its newer BlackBerry e-mail products.
The Waterloo, Ont.-based company now expects sales for fiscal 2003, ending in February, will be between $300-million (U.S.) and $315-million ― down from the $350-million to $375-million the company predicted in June.
Rim also cut its third-quarter revenue forecast to about level with the second-quarter revenue figure of $73.4-million. The company's previous forecast was for third-quarter revenue of $90-million to $100-million.
The company, recognized for its signature BlackBerry wireless handheld device, made the annoucement in a conference call with analysts to discuss its second quarter results.
After the end of trading Thursday, RIM reported a loss of $14.3-million (U.S.), or 18 cents a share in the three months ended in August, compared with a loss of $17.5-million, or 22 cents a share, in the same period last year.
Sales for the second quarter fell 8 per cent to $73.4-million from $80.1-million.
The per share results were in line with expectations. Analysts surveyed by Thomson First Call had forecast revenue of $75-million and a per-share loss of 18 cents.
"While I believe it's prudent to lower our revenue forecasts for Q3 and Q4, we remain positive on the underlying strengths of our strategy and our competitive positioning," Jim Balsillie, RIM's chairman and co-chief executive, said in a conference call.
"BlackBerry subscriber additions were quite strong in the quarter, particularly given the continuing weak IT (information technology) spending environment," he added.
Last week, RIM shares fell to a three-year low of $8.50 on the Nasdaq Stock Market. On Thursday, they slumped an additional 4 per cent to $8.21 in extended trading after closing at $8.54 on the Nasdaq. In Toronto, they lost 5.2 per cent to $13.60 (Canadian).
RIM provided the following sales breakdown for the quarter: 37 per cent for handhelds, 43 per cent for service, 11 per cent for software licences and development, and 9 per cent for OEM radios and other sales.
RIM's $14.3-million (U.S.) secng quarter loss included a one-time $4.9-million hit related to the company's legal battle with Good Technology Inc. RIM has launched several different suits against Good Technology, including patent infringement.
The number of BlackBerry subscribers grew by about 48,000 subscribers to 403,000 as at Aug. 31, 2002, RIM said.
The company plans to buy back up to 3.8 million common shares, roughly 5 per cent of its shares outstanding, starting Oct. 9.
Research In Motion Ltd. trimmed financial forecasts for 2003 Thursday, blaming delays in the introduction of its newer BlackBerry e-mail products.
The Waterloo, Ont.-based company now expects sales for fiscal 2003, ending in February, will be between $300-million (U.S.) and $315-million ― down from the $350-million to $375-million the company predicted in June.
Rim also cut its third-quarter revenue forecast to about level with the second-quarter revenue figure of $73.4-million. The company's previous forecast was for third-quarter revenue of $90-million to $100-million.
The company, recognized for its signature BlackBerry wireless handheld device, made the annoucement in a conference call with analysts to discuss its second quarter results.
After the end of trading Thursday, RIM reported a loss of $14.3-million (U.S.), or 18 cents a share in the three months ended in August, compared with a loss of $17.5-million, or 22 cents a share, in the same period last year.
Sales for the second quarter fell 8 per cent to $73.4-million from $80.1-million.
The per share results were in line with expectations. Analysts surveyed by Thomson First Call had forecast revenue of $75-million and a per-share loss of 18 cents.
"While I believe it's prudent to lower our revenue forecasts for Q3 and Q4, we remain positive on the underlying strengths of our strategy and our competitive positioning," Jim Balsillie, RIM's chairman and co-chief executive, said in a conference call.
"BlackBerry subscriber additions were quite strong in the quarter, particularly given the continuing weak IT (information technology) spending environment," he added.
Last week, RIM shares fell to a three-year low of $8.50 on the Nasdaq Stock Market. On Thursday, they slumped an additional 4 per cent to $8.21 in extended trading after closing at $8.54 on the Nasdaq. In Toronto, they lost 5.2 per cent to $13.60 (Canadian).
RIM provided the following sales breakdown for the quarter: 37 per cent for handhelds, 43 per cent for service, 11 per cent for software licences and development, and 9 per cent for OEM radios and other sales.
RIM's $14.3-million (U.S.) secng quarter loss included a one-time $4.9-million hit related to the company's legal battle with Good Technology Inc. RIM has launched several different suits against Good Technology, including patent infringement.
The number of BlackBerry subscribers grew by about 48,000 subscribers to 403,000 as at Aug. 31, 2002, RIM said.
The company plans to buy back up to 3.8 million common shares, roughly 5 per cent of its shares outstanding, starting Oct. 9.
