After the close of business yesterday, April 28th, Research in Motion released updated Q1 guidance for investors lowering their forecasted revenue down from guidance provided last quarter. RIM (RIMM), who has seen over a 12.5% drop in their stock price in over night trading, lowered their forcasted earnings from $1.47-$1.55 per share down to $1.30-$1.37 per share.
The reason for the adjustment… “primarily due to shipment volumes of BlackBerry smartphones that are now expected to be at the lower end of the range of 13.5-14.5 million forecasted in March and a shift in the expected mix of devices shipped towards handsets with lower average selling prices. Gross margin for the first quarter is expected to be similar to the 41.5% previously guided.”
In plain English, RIM isn’t selling nearly as many BlackBerry devices as they thought they would and hardly any high end BlackBerry devices at all. Some will argue that that RIM doesn’t have any high end BlackBerry devices, however, I will leave that rant for another post…
[Press Release]
Research In Motion Provides Updated Q1 Guidance — Stock Dives Over 12.5% In After Hours Trading is a post from: RIMarkable, the Unofficial BlackBerry Weblog...
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RIMarkable: Research In Motion Provides Updated Q1 Guidance ? Stock Dives Over 12.5% In After Hours Trading
Apr 29 2011, 02:46 PM
