RIM profit jumps 33 percent
Sales rise 53 percent on surging demand for the company's popular BlackBerry wireless e-mail device.
RIM reported net income rose to $120.1 million, or 61 cents per share, in the quarter ended Nov. 26, from $90.4 million, or 46 cents per share, in the corresponding period a year earlier.
Adjusted to exclude an intangible asset writedown, legal fees, and the related tax impact, its profit was 71 cents a share.
Revenue in the quarter rose to $560.6 million from $365.9 million.
Analysts had expected a profit of 65 cents per share before exceptional items, on revenue of $549 million, according to Reuters Estimates.
RIM, which cut subscriber additions forecasts last month, had told investors it expected to report third-quarter revenue of $540 million to $570 million
RIM said that during the quarter an additional 645,000 subscribers began using the thumb-operated BlackBerry, which helped popularize wireless e-mailing. Its subscriber base rose to 4.3 million, more than double the number of users it had a year earlier.
RIM warned investors on Nov. 23 that it expected third-quarter subscriber additions to be 8 percent lower than its previous forecast of 680,000 to 710,000,
RIM shares rose almost 5 percent to $64.67 on the electronic Inet brokerage system from their close of $61.76 on Nasdaq. The stock closed down 99 Canadian cents to C$72.50 in Toronto.
"Basically I think it's the fact that the devices are still selling," said Benjamin Bollin, an analyst at FTN Midwest Securities.
"(Given) the fact that they were able to maintain revenue guidance for the (coming) quarter, it really looks like the sustainability and momentum, at least in the hardware sales, has persisted."
RIM reiterated its fourth-quarter forecast for revenue of $590 million to $620 million and said it expects adjusted earnings in the range of 76 cents to 81 cents per diluted share.
This compared with analyst expectations of a fourth-quarter adjusted profit of 76 cents a share on revenue of $603.8 million.
"Subscriber additions in the fourth quarter are expected to be lower than previously forecast, in the range of 700,000 to 750,000," RIM said. It had warned last month fourth-quarter additions would be 3 percent lower than its previous forecast of 775,000 to 825,000.
RIM said first-quarter revenue is expected to be in the range of $610 million to $650 million, with earnings per share in the range of 77 cents to 84 cents per share.
Analysts had forecast a first-quarter profit of 78 cents per share before exceptional items, on revenue of $633.8 million, according to Reuters Estimates.