RIM stock rises on robust results

Research In Motion Ltd. posted another strong quarter with an equally strong outlook, sending its stock up more than 11% after results were announced yesterday.
RIM’s revenue for the fiscal third quarter, ended Dec. 1, reached $1.67 billion, up 100% from the year-ago quarter. Net income for the quarter was $371 million, more than double the year-ago quarter.
The Waterloo, Ontario-based company forecast revenue for the quarter now underway at $1.8 billion to $1.87 billion, with 1.8 million subscriber adds.
Both RIM’s fiscal third quarter results and forecasts were above analysts’ estimates. The company’s stock hovered around $119.52 today.
The BlackBerry maker said that its devices accounted for 80% of its revenue. The company shipped 3.9 million devices in the quarter just ended and added about 1.7 million subscribers.
“Results were driven by strong seasonal demand and promotional activity, the launch of the Pearl 8130 and growth internationally,” wrote analyst Ittai Kidron at CIBC World Markets in a note to investors.
“Although management remains mum on new products, we’re comfortable that yet-to-be-announced products will spur further growth and replacements,” Kidron added. “We believe a portfolio with updated multimedia features, touchscreen and 3G, as well as WLAN/GPS, are on the way.”
In other news, Telecommunications Systems, Inc., a provider of wireless data solutions, announced it filed a patent infringement lawsuit against RIM in a Virginia court, alleging that the BlackBerry maker violates a TCS patent that allows a subscriber to access and manage multiple e-mail accounts.