Research In Motion cut its outlook for profits in the fiscal first quarter ending 28 May, after sales of BlackBerrys fell short of expectations. RIM now expects earnings per share for Q1 of USD 1.30-1.37, lower than its earlier guidance in March for USD 1.47-1.55. BlackBerry shipment volumes are expected to be at the low end of the forecast range of 13.5-14.5 million, with a shift in the expected mix of devices towards handsets with lower average selling prices. Gross margin for the first quarter is expected to be similar to the 41.5 percent previously guided. The change in product mix is also expected to result in revenue slightly below the forecast range of USD 5.2-5.6 billion. RIM said shipments of the new BlackBerry PlayBook remain in line with expectations, and it has not experienced any significant supply disruptions in Q1 due to the impact of the Japan earthquake. For the full year, RIM forecast EPS of approximately USD 7.50, based on expected strong revenue growth in the third and fourth quarters on the launches of new BlackBerrys and cost controls.
