RIM forecasts Q1 operating loss

News Wireless Global 30 MAY 2012
RIM forecasts Q1 operating loss
Research In Motion expects to report an operating loss for its fiscal first quarter to 02 June, hurt by weak demand for its BlackBerry smartphones. CEO Thorsten Heins said in a letter to shareholders that the company continues to suffer from lower volumes and "highly competitive pricing dynamics in the market". The company is competing "aggressively" on both the consumer and enterprise market and is pushing ahead with planned cost reductions of USD 1 billion by the end of fiscal 2013, Heins said. It also expects an increase in its cash position in Q1 from the USD 2.1 billion reported at the end of February. The CEO also confirmed that headcount reductions will continue throughout the fiscal year, while at the same time RIM will hire new staff to support the launch of BlackBerry 10, still planned for "later this year". Heins confirmed that the company hired JP Morgan and RBC to look at strategic options for the group, including licensing deals for the BlackBerry platform, but did not provide any further details. More information will be announced with the quarterly results on 28 June, he said.

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Mobile

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Research In Motion

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Financial figures, Handsets

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