By Max Clarke
Revenues at Research in Motion (Nasdaq: RIMM; TSX: RIM) have slid by 12% during the first quarter of the 2012 fiscal year, compared to Q4 2011.
The Canadian mobile communications giant behind BlackBerry and their new Playbook tablet device has admitted to a ‘challenging’ start to the financial year, though they are quick to add that the company remains in profit.
"RIM’s business is profitable and remains solid overall with growing market share in numerous markets around the world,” commented the company’s co-CEO, Jim Balsillie, “and a strong balance sheet with almost $3 billion in cash. We believe that with the new products scheduled for launch in the next few months and realigning our cost structure, RIM will see strong profit growth in the latter part of fiscal 2012."
The company will shed staff in the coming quarter, in a bid to curtail declining revenues, as part of a ‘streamlining’ of operations.
RIM will also embark on a large scale buy back of the company’s shares- a move deemed by their Board of Directors to be in the group’s best interest. Remaining shareholders’ increased interest in the group was also deemed to by advantageous. Actual numbers to be purchased and the timings of the transactions have yet to be called, as they will depend on market conditions.
Net income for the quarter was $695 million, or $1.33 per share diluted, compared with net income of $934 million, or $1.78 per share diluted, in the prior quarter and net income of $769 million, or $1.38 per share diluted, in the same quarter last year.
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