UPDATED: Bad news for Blackberry owners. The company behind the popular smartphone just reported disastrous earnings for the quarter that ended June 2 — sending shares plummeting about 16% in after-hours trading. RIM had a net loss of $518M, down from a profit of $695M in the period last year, on revenues of $2.8B, down 33%. The Street expected revenues of about $3.1B — and the net loss of 99 cents a share contrasts with analyst expectations of just a one cent loss. “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,” CEO Thorsten Heins says. To that end, the company said today that it is cutting about 5,000 jobs. That and other organizational changes could result in $350M in charges this fiscal year. RIM has been struggling to keep up with competition from Apple’s iPhones and Google’s Android smartphones. But the Blackberry 10 platform, a major update to its operating system, isn’t due until early 2013, Heins told analysts. The integration of new features was “more challenging and time-consuming than anticipated,” Heins says. RIM shares are down 37% so far in 2012 and nearly 68% over the last 12 months.
Blackberry-Maker Research In Motion Reports Startling Loss In Fiscal Q1
What's Hot on Deadline
More From Lieberman
- TV Land Hit By Layoffs As Viacom Consolidates And Looks To Cut Costs
- Networks Still Nagged By Weak Ad Growth As Upfront Market Approaches
- Will HBO Team Up With Apple For Online Service Launch?
- Warner Bros CEO Forecasts More Cost Cutting, Even As Studio Grows
- Netflix Looks At ‘Beasts Of No Nation’ As An Experiment
- Chase Carey: Online Video Services Are A “Big Priority” For Fox