RIM says Q2 forecast is lower than expected

17.06.2011

RIM said it sold about 500,000 BlackBerry PlayBook tablets in the quarter, following the device's launch on April 19.

For the current quarter, ending Aug. 27, RIM expects revenue in the range of $4.2 billion to $4.8 billion and earnings per share between $0.75 and $1.05, excluding one-time charges.

RIM has been struggling to compete with Apple's iPhone as well as devices running the Google Android OS, which in addition to being popular with consumers have begun to chip away at RIM's stronghold in the business market.

Investors are fleeing the company. RIM's shares, which closed Thursday at $35.33, are at about half their price just four months ago.

On April 28, RIM would likely be lower than expected and cut its earnings guidance. It cut its earnings expectations to between $1.30 and $1.37, from its earlier forecast of $1.47 to $1.55. Likewise, it said revenue would be "slightly below" the range of $5.2 billion to $5.6 billion that it had predicted earlier.