RIM revenue plunges 43% at $2.8 billion in Q1 FY13

Telecom Lead America: Research In Motion (RIM) has
posted 43 percent decline in revenues at $2.8 billion in Q1 FY13, as compared
with $4.9 billion a year earlier.

Net loss for the quarter was $518 million, as compared
with net loss of $125 million in Q4 FY12 and net income of $695 million a year

Adjusted net loss for the first quarter was $192
million, or $0.37 per share diluted.

The company earned approximately 59 percent of the
revenue from hardware, 36 percent for service and 5 percent for software and
other revenue. 

The company posted operating expenses at $1.4 billion for
Q1 FY13, against $1.5 billion for Q4 FY12, and $1.2 billion a year earlier.

The total of cash, cash equivalents, short-term and
long-term investments was $2.2 billion as of June 2, 2012, compared to $2.1
billion at the end of the previous quarter, an increase of approximately $100
million from the prior quarter.

During the quarter, RIM shipped 7.8 million BlackBerry
smartphones and approximately 260,000 BlackBerry PlayBook tablets.

Our first quarter results reflect the market challenges
I have outlined since my appointment as CEO at the end of January.  I am
not satisfied with these results and continue to work aggressively with all
areas of the organization and the Board to implement meaningful changes to
address the challenges, said Thorsten Heins, president and CEO.

The company has also delayed the launch of the first
BlackBerry 10 smartphone and expects to bring it out in Q1 of calendar 2013.
RIM is also slashing 5,000employees across its global operation in order to
recover from losses.

The Company expects the next several quarters to continue
to be very challenging for its business based on the increasing competitive
environment, lower handset volumes, and other impacts from the delay of
BlackBerry 10.

The Company expects to report an operating loss in the
second quarter of fiscal 2013, as RIM continues to invest in marketing programs
and continues to work through the transition to BlackBerry 10.


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