Research in Motion stock plunges on weak sales

NEW YORK: Shares of Research in Motion (RIM) plunged 19 percent in early trading on Friday (16 September 2011) after the BlackBerry maker reported sales and profits that fell short of expectations.
Research in Motion stock plunges on weak sales

The company's shares were down $5.57 to $23.97 on the Nasdaq stock exchange at about 1400 GMT.

The Waterloo, Ontario-based RIM said late Thursday that net profit fell to $329 million, or 63 cents per share, in its fiscal second quarter from $797 million, or $1.46 per share, in the same quarter a year ago.

Revenue declined to $4.2 billion in the quarter which ended on August 27 from $4.6 billion a year ago.

RIM, which is facing stiff competition from Apple's iPhone and handsets running Google's Android software, said it shipped 10.6 million BlackBerry smartphones during the quarter and 200,000 PlayBooks, RIM's rival to the iPad.

Analysts had expected BlackBerry shipments of 11.9 million units and 700,000 PlayBooks.

Source: AFP


 
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