Blackberry News

8/3/2019 Blackberry News

1/5

RIM Results, Outlook Stun Investors

RIM, which launched a string of refreshed

BlackBerry phones in recent weeks, painted a

dismal picture for its current quarter

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(Reuters)

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A Bolder Move

Research In Motion reported a steep drop in quarterly profit on limp sales of its smartphones andtablets, and offered investors little hope of a turnaround anytime soon, sending its sharestumbling.
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2/5

RIM, which launched a string of refreshed BlackBerry phones in recent weeks, painted a dismalpicture for its current quarter and said it now expects to reach only the lower end of an alreadyreduced full-year outlook in a quarterly financial report issued late Thursday.

"This report is another nail in the coffin of management," said Edward Snyder, an analyst atCharter Equity Research. "Even though they guided down for this quarter, they still fell short ofthat."

The flagging performance by the one-time smartphone leader shows how far BlackBerry, once abyword for corporate communication, has fallen out of favor with both consumers and investorsas Apple's iPhone and devices running Google's Android software take oversized bites out of thebooming market, especially in the United States.

"It's pretty clear the BlackBerry platform is now in decline, said analyst Tavis McCourt atMorgan Keegan. "They really need QNX to reinvigorate the business."

RIM is hitting the labs to get the QNX software powering its PlayBook tablet onto its nextgeneration of smartphones, possibly as soon as early 2012.

The limp numbers pile pressure on senior executives, who have been cajoled to step aside byinvestors and analysts worried about repeated failures to execute on strategy.

"If QNX is a bust that's when RIM needs to make strategic decisions as to whether it can go italone," McCourt said.

RIM shipped just 10.6 million smartphones in the second quarter, as carriers struggled to sellyear-old devices with limited processing power compared to newer rival products.

"I was stunned that the device number was below their guidance," said Peter Misek fromJefferies & Co.

Perhaps more ominously, RIM shipped only 200,000 PlayBook tablet computers, which went onsale globally in June after weathering some scathing reviews at a North American launch inApril.

Analysts had expected RIM to ship almost 12 million phones and 600,000 tablets. RIM's ownoutlook was for BlackBerry shipments of between 11 million and 12.5 million.

Highlighting a widening gap, Apple sold more 20 million iPhones and more than 9 million iPadslast quarter after virtually creating the tablet market last year.

CEO PromisesRIM's co-CEOs Mike Lazaridis and Jim Balsillie took turns explaining RIM's performance on aconference call after the results for a second straight quarter. Balsillie had previously taken thecall on his own.


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4/5

RIM's India Facility To Help With Surveillance

RIM has set up a facility in Mumbai to help

govt carry out lawful surveillance of its BB

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(Reuters)

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5/5


A Bolder Move

Research In Motion has set up a facility in Mumbai to help the government carry out lawfulsurveillance of its BlackBerry services, the Wall Street Journal said, citing people familiar with

the matter.

RIM gave India access to its consumer services, including its Messenger services, in January thisyear after authorities raised security concerns, but said it could not allow monitoring of itsenterprise email.

RIM partly assuaged India by setting up the small Mumbai facility earlier this year to handlesurveillance requests from India, the WSJ reported.

India can submit the name of a suspect its investigators want to wiretap, and RIM will returndecoded messages for that individual, as long as it is satisfied the request has legal authorization,

it said.

RIM was not available for comment outside regular Canadian business hours.

The new facility will handle lawful intercept requests for consumer services including theBlackBerry Messenger chat service, the paper said.

India saw the move as a positive step, but would prefer an arrangement where it has the ability todecode messages itself, so that it can conduct surveillance without disclosing the names ofsuspects to RIM, the Journal reported.

India still has no method to intercept and decode BlackBerry enterprise email, which is used bycorporate customers and features a higher level of encryption than consumer email and instantmessaging, the report said.
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