RIM comes up short in Q3, warns that consumer demand is down

Research In Motion Ltd. said today that its fiscal third-quarter results would miss expectations, evidence that the BlackBerry maker, like others, has been swept up in the global economic downturn.
RIM warned that revenue in the fiscal quarter just ended would reach the range of $2.75 billion to $2.78 billion, well below the previously forecast range of $2.95 billion to $3.10 billion. The company noted, however, that the lower revenue estimate would still give it a 65% increase in revenue over the year-ago quarter.
RIM delivers its final numbers for the quarter on Dec. 18.
The firm’s warning comes just days after a similar cautious tone from rival Palm Inc.
The Waterloo, Ontario-based BlackBerry maker attributed its revenue weakness to general economic weakness in the U.S. and shifts in product launch dates within the quarter, and to a stronger U.S. dollar. Net subscriber additions would reach about 2.6 million, below prior guidance of about 2.9 million.
RIM asserted that its latest product launches, including the BlackBerry Storm at Verizon Wireless, were “positive.”
RIM’s stock gyrated during morning trading before nearly regaining its closing value from yesterday, which is just above its 52-week low.
Analysts, in general, said that RIM’s revised forecast was not unexpected and that the company remained well-positioned in the still-growing smartphone market, which continued to outpace the overall handset market.
Analyst Ittai Kidron at Oppenheimer cited “the deteriorating macro-environment and carriers’ tightening inventory,” as well as “heavy U.S. exposure” and the BlackBerry Storm’s limited availability as factors in assessing RIM’s value, which he downgraded slightly.
In related news, RIM announced that it would make a $66 million takeover offer for Certicom Corp., an encryption software firm.