Research In Motion CEO Thorsten Heins was pretty clear and direct with a press release this afternoon about the company's business status.
The news wasn't great, trading for the stock was halted and as always with RIM, the negative news completely exploded out of proportion before anyone could actually finish reading the press release. So what happened?
Back on March 29th, RIM's Fiscal Year Report for 2011 was pretty bad.
Heins promised at the time he'd be keeping people in the loop and today that's exactly what he did. In a way, RIM reached and essentially said "hey the Q1 earnings call that will happen on the June 28th is going to probably be bad." Here's what we can take from it all.
RIM will probably lose money in Q1 of 2012.
Despite huge attempts at pushing BlackBerry 7, it simply hasn't happened and as a result they will probably report a loss this quarter.
RIM announced that they have hired J.P. Morgan Securities LLC and RBC Capital Markets
to “assist the Company and our Board of Directors in reviewing RIM’s business and financial performance." Does this mean a sale of the company is imminent? No, but as we've known from the earnings call back on March 29th, RIM has been looking at all strategic options to see what's the best possible path to go down in the future. Remember those Samsung could license BB10 rumors?
Nothing new here.
RIM is restructuring the company
and hopes to be able to cut some losses in those respects. We know RIM is in the middle of letting people go, unfortunately,
and while it's very sad, this is something a company that is struggling has to do to attempt to stay afloat.
RIM still has a lot of cash.
About $2.1 billion to be more exact and that only went up in Q1. How does this make sense since they haven't sold that many phones? Well it's proof that RIM does do a lot outside of the hardware market as well.
BlackBerry subscribers up to 78 million.
Yes, it's only a rise of about 1 million subscribers which compared to the 2 million increase last quarter suggests a downward trend unfortunately.
It's not going to get better for RIM anytime soon.
Until BlackBerry 10 is launched, it's going to be ugly. Plain and simple. Actually, it's probably going to get even uglier than this before it gets better. Expect Q2 to be the worst and if, hopefully, BlackBerry 10 launches in Q3 like we expect, maybe that quarter will break the trend.