RIM reports quarterly net loss as sales fall 31%

Revenue was up 2 percent from the previous quarter but was still down 31 percent from a year earlier to USD 2.9 billion, and the company reported a net loss of USD 235 million or USD 0.45 per diluted share, compared to net profit of USD 329 million or USD 0.63 per share a year ago. 

Excluding pretax restructuring charges of USD 136 million, the adjusted net loss was USD 142 million or USD 0.27 per share. At the end of August, RIM had USD 2.3 billion in cash remaining, after cash flow from operations of USD 432 million in the quarter. 

CEO Thorsten Heins said the company still has "much more work to do" to turn around results, but was on track to launch the new BlackBerry 10 early next year. In the mean time the company expects continued pressure on operating results for the remainder of the fiscal year, due to tough competition, lower handset volumes, increased marketing expense associated with the launch of BlackBerry 10, and some pressure from customers to reduce its monthly infrastructure access fees. 

RIM also plans to spend on targeted marketing campaigns to drive sales of BlackBerry 7 devices. As a result it expects to report an operating loss again in fiscal Q3.