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RIM earnings: Revenue light, outlook strong

Research in Motion reports a solid forth quarter, but it falls short of Wall Street's lofty expectations. BlackBerry shipments surge.

RIM BlackBerry Bold 9700 CNET

Research in Motion's quarter was solid, but fell short of Wall Street's lofty expectations. International sales were strong, but revenue and earnings fell short of expectations. RIM's outlook was upbeat for the first quarter.

The company reported net income of $710.1 million, or $1.27 a share, up from earnings of $518.3 million, or 90 cents a share a year ago. Revenue was $4.08 billion, up 18 percent from a year ago. The problem: for the fourth quarter, RIM was expected to report earnings of $1.28 a share on revenue of $4.31 billion (preview, statement).

On the bright side, RIM's gross margins of 45.7 percent were well above expectations of 43 percent.

Read more of "Research in Motion earnings: Revenue light, outlook strong; BlackBerry shipments surge" at ZDNet's Between the Lines.