BlackBerry revenue dips 10 percent in Q2 2011

Research In Motion (RIM) reported a revenue of $4.2 billion for the second quarter of fiscal 2012, down 10 percent from $4.6 billion in the same quarter of last year.

The revenue breakdown for the quarter was approximately 73 percent for hardware, 24 percent for service, and 3 percent for software and other revenue.

During the quarter, RIM shipped approximately 10.6 million BlackBerry smartphones and approximately 200,000 BlackBerry PlayBook tablets.

“We launched a range of BlackBerry 7 smartphones around the world during the latter part of the second quarter and we are seeing strong sell-through and customer interest for these new products. Overall unit shipments in the quarter were slightly below our forecast due to lower than expected demand for older models,” said Jim Balsillie, Co-CEO at Research In Motion.

“We will continue to build on the success of the BlackBerry 7 launch to drive the business as we focus our development efforts on delivering the next generation, QNX-based mobile platform next year,” Balsillie added.

The BlackBerry subscriber base grew 40 percent year over year to surpass 70 million. RIM’s largest roll-out of BlackBerry smartphones was initiated with 7 new smartphones launched with over 90 carrier and distribution partners in 30 countries during the latter part of Q2

Approximately $780 million was invested as part of a consortium of companies that successfully bid to acquire intellectual property assets from Nortel.

BlackBerry smartphone shipments in Q3 are estimated to grow between 27-37 percent over Q2 shipments.

The company’s GAAP net income for the quarter was $329 million, or $0.63 per share diluted, compared with net income of $797 million, or $1.46 per share diluted, in the same quarter last year.

Revenue for the third quarter of fiscal 2012 ending November 26, 2011 is expected to be in the range of $5.3-$5.6 billion. Gross margin percentage for the third quarter is expected to be approximately 37 percent. BlackBerry smartphone shipments are expected to be between 13.5 million and 14.5 million units.

By Team
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