RIM posts strong quarter, defying critics

Research In Motion Ltd. (RIMM) reported one of its best quarters ever, shipping a record 14.2 million devices, up 40% from a year ago. The BlackBerry maker said it added 5.1 million accounts during the time frame, pushing its subscriber base to more than 55 million.
Net income for the third quarter totaled $911.1 million, up nearly 45% from a year ago, and 14.3% from the second quarter. Revenues totaled $5.49 billion, up 19% from the previous quarter and 40% from the same period one year ago.
“We are pleased to report another record quarter with strong growth in shipments of BlackBerry smart phones leading to record revenue, subscriber additions and earnings. RIM’s business continues to grow and diversify as BlackBerry adoption accelerates in markets around the world,” said Jim Balsillie, Co-CEO at Research In Motion. “With strong results and momentum from our recent product introductions, as well as growing excitement from our partners and customers around upcoming smartphone, tablet, software and service offerings, we are setting the stage for continuing success.”
RIM said it expects revenues for its fiscal fourth quarter to be between $5.5 billion and $5.7 billion.
Device sales accounted for about 82% of its revenues, while services made up 15% of revenues, followed by software and other revenue at 3%. While RIM is losing market share in the United States, it is selling more devices overseas, especially in Latin America, to offset its decline in the United States. The company expects to introduce its tablet, called PlayBook, early next year. Initially, the device will be Wi-Fi only, but cellular connectivity will be added. RIM said it continues to have strong relationships with Sprint Nextel Corp. and Verizon Wireless.
The Torch was launched in 75 countries in the quarter, and RIM said it was a success in the Middle East.
In other news, RIM’s board of directors appointed co-CEOs Balsillie and Mike Lazaridis as co-chairmen of its board. Jim Estill has resigned his position as a director due to a conflict of interest.