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With Strong BlackBerry Sales, RIM Reports 7.9 Percent Increase in Quarterly Revenues

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With Strong BlackBerry Sales, RIM Reports 7.9 Percent Increase in Quarterly Revenues
December 19, 2008
By Michael Dinan, TMCnet Editor


A Canadian company whose flagship mobile devices have become synonymous with smartphones today announced a 7.9 percent increase in revenues, to $2.78 billion, for the quarter ended Nov. 29.

Officials at Waterloo, Ontario-based Research In Motion Limited say the figure marks a 66.3 percent increase from the year-ago quarter, and that about 81 percent of its take represents money from devices, with 13 percent for services and 2 percent for software. The company says it shipped about 6.7 million smartphones during the three-month period.
Jim Balsillie, co-chief executive officer at RIM, said the company entered the current quarter with strong momentum despite the faltering economy.
“In fact, we have enjoyed our best ever start to the holiday buying season over the past few weeks,” said Balsillie, pictured right. “RIM launched an unprecedented number of BlackBerry (News - Alert) smartphones in the third quarter and these new products are being adopted at an even faster pace than we expected. Our industry leading product portfolio is positioned well to capitalize on the increasing market opportunity in the fourth quarter of fiscal 2009 and beyond.”
Net income for the quarter was $396.3 million, or 69 cents per share, RIM officials say, compared with net income of $495.5 million, or 86 cents per share, in the prior quarter and net income of $370.5 million, or 65 cents per share diluted, in the year-ago quarter.
Morning trading reflected RIM’s strong numbers, with the company’s shares rising more than 5 percent, according to CNBC.
RIM is sharing the spotlight as a technology company reporting good news.
As TMCnet reported, Redwood Shores, California-based Oracle, the largest software maker for enterprises, said it saw a a 6 percent increase in revenues for the quarter ended Nov. 30. Officials at say the figure marks quarterly earnings of 25 cents per share, though total revenues fell 6 percent, to $5.6 billion.
Also, as TMCnet reported, Movero Technology, Inc. – an Austin, Texas-based company that offers Web-based mobile management – says that not only has 2008 has been a strong year, but that it keeps getting stronger.
The company’s president and chief executive officer, Melanie Gray, told TMCnet in an interview that, if anything, business has been up since the downturn hit in earnest in the late summer.
“Based on what we hear from our clients, this challenging economic climate is forcing corporations to centralize mobile device management in order to reduce costs and streamline business processes,” Gray told TMCnet. “In other words, our clients are looking to Movero to help them improve the bottom line at a time when top line growth is becoming an increasingly challenging prospect.”
Movero officials like are pleased with the positive news out of RIM, whose devices are a must-have for many business professionals on-the-go.
About 2.6 million new BlackBerry subscriber accounts were added in the quarter that ended Nov. 29, RIM officials say – bolstering a base that grew from the prior quarter by about 14 percent, to approximately 21 million.
Officials from RIM say that for the quarter ending Feb. 28, revenue is expected to be in the range of $3.30 to $3.50 billion, and that subscriber account additions in the fourth quarter are expected to be approximately 2.9 million.
Earnings per share for the current quarter are expected to be in the range of 83 to 91 cents, according to the company.

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Michael Dinan is a contributing editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To read more of Michael’s articles, please visit his columnist page.

Edited by Michael Dinan

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