Bloomberg News

Research In Motion Falls on Subscriber Growth: U.S. After-Hours

September 28, 2005

Research In Motion Ltd. (RIM), the maker of the BlackBerry e-mail pager, fell in trading after the official close of U.S. exchanges as the company added fewer subscribers last quarter than some analysts expected.

Research In Motion lost $2.75, or 3.6 percent, to $74.50 as of 5:06 p.m. in extended trading. The company said in a statement it added 620,000 subscribers during the fiscal second quarter, missing analyst estimates that ranged as high as 650,000. The company also said net income rose 57 percent to $111.1 million, or 56 cents a share.

Red Hat Inc. (RHT:US), the world's biggest distributor of Linux computer software, rose $1.79, or 11 percent, to $18.30. The company said it had a fiscal second-quarter profit of 9 cents a share, beating the 7-cent average estimate of 19 analysts surveyed by Thomson Financial.

U.S. stock-index futures were mixed. December futures on the Standard & Poor's 500 Index rose 0.30 at 1223.10, while Nasdaq-100 Index futures slipped 0.50 to 1580.

The Nasdaq-100 After-Hours Indicator, which tracks stocks in the Nasdaq-100 Index that are traded between 4 p.m. and 6:30 p.m. New York time, lost 0.47 to 1568.34.

In regular trading, the S&P 500 gained as a report that durable-goods orders jumped last month helped the market recoup losses tied to rising oil prices. The benchmark advanced for a fifth consecutive day, adding 1.23, or 0.1 percent, to 1216.89. It had dropped as 0.2 percent.

The Dow average rose 16.88, or 0.2 percent, to 10,473.09, while a decline in shares of Apple Computer Inc. weighed on the Nasdaq Composite Index, which slipped 1.02 to 2115.40.

To contact the reporter on this story: Edgar Ortega in New York at ebarrales@bloomberg.net.

To contact the editor responsible for this story: John Melloy at jmelloy@bloomberg.net.


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Companies Mentioned

  • RHT
    (Red Hat Inc)
    • $62.25 USD
    • -0.54
    • -0.87%
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