RIM has announced that it will be taking over half a billion dollars in charges related to two major failures this fiscal year. First is the immense overproduction of the Playbook tablet, the writedown of which inventory amounted to $485M on its own, or $360M after tax. The second charge is related to the prolonged network outage in early October, though it's unclear whether that money is directly related or being reserved for dealing with ongoing costs like lawsuits. Sales of handsets and services were as forecasted, but a lack of growth must be inferred by their waning market share, and at any rate the sales weren't enough to put RIM at their expected revenue of $5.3 billion for the upcoming quarter. Quarterly earnings are at a level with guidance and predictions of around $1.20 per share, but yearly earnings will miss the expected $5.25 per share, and analysts are calling for as little as $3.50.
Monday 5 December 2011
RIM To Miss Earnings Goals After Half A Billion In PlayBook And Outage Charges
RIM has announced that it will be taking over half a billion dollars in charges related to two major failures this fiscal year. First is the immense overproduction of the Playbook tablet, the writedown of which inventory amounted to $485M on its own, or $360M after tax. The second charge is related to the prolonged network outage in early October, though it's unclear whether that money is directly related or being reserved for dealing with ongoing costs like lawsuits. Sales of handsets and services were as forecasted, but a lack of growth must be inferred by their waning market share, and at any rate the sales weren't enough to put RIM at their expected revenue of $5.3 billion for the upcoming quarter. Quarterly earnings are at a level with guidance and predictions of around $1.20 per share, but yearly earnings will miss the expected $5.25 per share, and analysts are calling for as little as $3.50.
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