Research in Motion beats estimates and jumps 20% in after hours trade

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BlackBerry maker, Research in Motion (RIM), surprised on the upside after the Wall Street close Thursday, driving the shares up 20% to $8.60 in after hours trading as poor results turned out to be less bad than expected.  Earlier in the week the shares hit an all time low of $6.22 on renewed network issues, so a rather good trade for those buying in during the last couple of days!

RIM had revenue of $2.9 billion for the period, versus expectations of around $2.5 billion, but still down 30% year on year. It sold 7.4 million BlackBerry units in its second fiscal quarter, compared with expectations of around 7 million, a third down on the same period in 2011. It also reported a net loss of $235 million, or 45 cents a share compared with net profit of $329 million, or 63 cents a share, for the same period in 2011. Adjusted for restructuring costs the net loss was $142 million, or 27 cents a share, compared with expectations of  47 cents a share.  The company’s cash and equivalents increased by $100 million to $2.3 billion.

All eyes are on the launch of the BlackBerry 10 operating system early next year for clear signs of a revival in the company’s battered fortunes. Google’s Android operating system under the guise of companies like Samsung and Iphone have hit RIM hard in recent years. The new product line in 2013 as well as Chief Executive Thorsten Heins’s ongoing strategic review is key in identifying suitable partners to take the company forward against this intense competition in order to re-establish the company as a premier smartphone manufacturer. The quarter’s results have given Heins some breathing space with the investor community, but execution will now be key going forward.

Contrarian Investor UK

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