Advertisement
YOU ARE HERE: LAT HomeCollections

Earnings Roundup

BlackBerry maker misses estimates

June 26, 2008|From Times Wire Services

Research in Motion Ltd., maker of the BlackBerry e-mail phone, missed analysts' profit estimates for the first time in five quarters and gave a disappointing forecast amid higher spending to take on Apple Inc.'s new iPhone.

Its shares fell 9% after the Waterloo, Canada-based company reported fiscal first-quarter profit of 84 cents a share, trailing the 85 cents predicted by analysts in a Bloomberg survey. Earnings this quarter will be as little as 84 cents a share, compared with the 92-cent average prediction.

Co-Chief Executive James Balsillie boosted selling and marketing expenses by 84% in the quarter to counter the buzz of the iPhone and new handsets from smaller rival Palm Inc. Apple will release a faster iPhone next month that costs $199, cheaper than some BlackBerry models. That may hinder Research in Motion's expansion beyond its corporate stronghold.

Sales more than doubled to $2.24 billion in the quarter ended May 31, missing analysts' average prediction of $2.27 billion. Net income of $482.5 million was more than twice last year's $223.2 million, or 39 cents a share.

Shares fell $12.73 to $129.61 in extended trading after closing at $142.34, up $1.86.

Advertisement
Los Angeles Times Articles
|
|
|