RIM shares down after BlackBerry maker cuts view

NEW YORK

Shares of Research In Motion Ltd., the maker of the BlackBerry, were down sharply in pre-market trading after it slashed its earnings and sales forecasts for the current quarter.

The stock was down $7.04, or 12 percent, at $49.55 in morning trading. Its 52-week low is $42.53.

Late Thursday, the company said it is selling fewer and cheaper phones than it had expected, and new high-end models that will invigorate the line have been delayed.

RIM co-CEO Jim Balsillie said the company is in "transition" to a new generation of phones, and the cut in guidance doesn't reflect pessimism over the company's long-term prospects.

The company said it expects earnings for the fiscal first quarter, which ends in May, to range from $1.30 to $1.37 per share, down from a previous forecast $1.47 to $1.55 per share given on March 24. The previous forecast had also disappointed investors.

RIM said it now expects the number of BlackBerrys shipped will be toward the lower end of the previously forecast range of 13.5 million to 14.5 million, and revenue should come in below the $5.2 billion to $5.6 billion range it had given on March 24.