Research In Motion (Nasdaq: RIMM) posted a second quarter loss as it spent more money on marketing, manufacturing and technology infrastructure.
After market close Thursday, the provider of wireless products and services reported a fiscal second quarter loss of $1.6 million, or 2 cents per share. That includes $1.9 million in amortization expense and $3.1 million in investment income.
First Call's survey of 14 analysts predicted a loss of 3 cents per share of the quarter ended Aug. 31.
Shares of Research In Motion rose to 87 in afterhours activity on the Island electronic communications network, immediately following the release of quarterly results. The stock closed Thursday's regular trading at 83.4375, down 1.59375 for the session.
The second quarter loss stemmed from increased spending on marketing and support for the BlackBerry wireless e-mail service, the company said. Research In Motion reported profits in the comparable period a year earlier, as well as the first quarter.
Second quarter revenue increased to $42.5 million, up 57 percent sequentially and a 121 percent gain year-over-year. The company credited its handheld devices and BlackBerry wireless e-mail service with driving top line growth.
BlackBerry generated 57 percent of Research In Motion's overall revenue. About 36 percent came from wireless handheld devices. Radio modems and software sales were responsible for the rest of Research In Motion's business.
"Acceptance of BlackBerry as a mainstream business tool has been achieved with both users and IT departments," said Jim Balsillie, chairman and co-CEO. "During this next phase, our distribution partners will help RIM to further penetrate the enterprise market and enter the consumer market.">