RIM Posts Steep Sales Drop, Delays BlackBerry 10, Cuts 5,000 Staff

Research In Motion reported quarterly revenue $2.8 billion, down 33% from $4.2 billion in the previous quarter and down 43% from $4.9 billion in the same period last year. There was a GAAP net loss in Q1 of $518 million or $0.99 per share diluted; adjusted net loss of $192 million or $0.37 per share diluted.


Citing code writing delays, the company has decided to postpone the launch of its BlackBerry 10 smartphones until Q1 of calendar 2013.


RIM also announced a global workforce reduction of approximately 5,000 employees, a reduction in the number of layers of management, a streamlining of its supply chain, which includes the consolidation of our manufacturing footprint from 10 external manufacturing sites to three, and the outsourcing of its Global Repair unit.

"RIM’s development teams are relentlessly focussed on ensuring the quality and reliability of the platform and I will not compromise the product by delivering it before it is ready. I am confident that the first BlackBerry 10 smartphones will provide a ground-breaking next generation smartphone user experience," said Thorsten Heins, President and CEO. http://www.rim.com