Econo-collapse? Not Us, Says RIM (Updated)

Posted by: Stephen Wildstrom on February 11, 2009

rim_logo.gifThe world may be full of gloom and doom, but in Waterloo, Ont., the sun still seems to be shining brightly. BlackBerry-maker Research In Motion today increased its forecast for net customer additions for the quarter ending Feb. 28 by 20 over the 2.9 million it predicted in December.

RIM also reaffirmed its financial guidance for its fourth fiscal quarter, saying it expects revenue for the quarter to be “at or near the midpoint of the previously guided range,” while gross margins and earnings per share should be at “the low end” of guidance. “The new BlackBerry products that were launched in the fiscal third quarter continue to be well received in the market and post-holiday subscriber performance in both North America and international markets has exceeded RIM’s earlier expectations,” the company said in a statement.

RIM did not provide any visibility into the upcoming quarter, however, It said it would offer guidance when it reports its fourth-quarter results on April 2.

UPDATE: Of course, there’s no pl;easing the serpents of Wall Street, The markets apparently were disappointed that it merely reaffirmed its outlook when everyone else is downgrading theirs as fast as they can. In early trading, the stock fell more than US$9 to 47.81, a drop of more than 16%. Of course, the stock has been on a tear lately and even with today’s drop. remains well above its yearend price of $38.77.

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Reader Comments

iphonerulez

February 11, 2009 03:13 PM

I didn't think I'd ever see it. RIM, the darling of Wall Street gets kicked to the curb without so much as a good-night kiss.
I can't wait to see what Jim Cramer has to say about this. I don't think he even saw it coming. As hard as he shilled RIM, it seems it went to naught. I'm curious as to how he'll make his bad pick turn into a good pick.

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BusinessWeek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, Douglas MacMillan, and Spencer Ante dig behind the headlines to analyze what’s really happening throughout the world of technology. One of the first mainstream media tech blogs, Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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