RIM warns of Q1 loss, hires bankers to evaluate changes

RIM says it expects to log an operating loss for the current quarter amid competitive pressures

Research In Motion has warned that it expects an operating loss for the current quarter and has hired two investment banks to help it study alternative company strategies that might include licensing its OS.

The troubled BlackBerry maker said competitive pressures were hurting its business and that the current quarter, which ends June 2, is likely to end in a loss.

"The on-going competitive environment is impacting our business in the form of lower volumes and highly competitive pricing dynamics in the marketplace," RIM said in a press release on Tuesday. On its last quarterly earnings call, on March 29, the company said it would stop giving quarterly forecasts but warned that it expected pressure on earnings for the rest of the year. For the fourth quarter, which ended March 3, RIM reported a net loss of US$125 million.

Also on Tuesday, RIM said it had hired J.P. Morgan and RBC Capital Markets after the last earnings call to review its performance. The investment banks will help RIM with an ongoing strategic review that the company described on the March call. The bankers will help RIM "evaluate the relative merits and feasibility of various financial strategies, including opportunities to leverage the BlackBerry platform through partnerships, licensing opportunities and strategic business model alternatives," the company said.

RIM has struggled against the rise of Apple's iOS and Google's Android as the dominant mobile platforms. Its phone shipments plunged 21 percent in the fourth quarter, and though sales of its PlayBook tablet rose to 500,000 units, they were still dwarfed by quarterly iPad sales exceeding 10 million.

The news came amid reports that RIM is planning to lay off as many as 2,000 employees. In its Tuesday press release, RIM said there would be "significant spending reductions and headcount reductions throughout the remainder of the fiscal year," without giving any details.

RIM plans to announce its results for the current quarter on June 28.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Struggling for Christmas presents this year? Check out our Christmas Gift Guide for some top tech suggestions and more.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?