Blackberry maker RIM profits fall sharply
- 15 September 2011
- From the section Business
Blackberry manufacturer Research in Motion (RIM) has seen its second-quarter profits more than halve, hurt by low demand for its older models.
The firm rolled out new smartphones but only late in the quarter.
Net profit fell to $329m (£208m) for the three months to 27 August, from $797m in the same period a year earlier.
In July, the company said it would cut 2,000 jobs - 11% of its workforce - as part of a shake-up of its operations.
Revenue for the second quarter fell to $4.2bn, a drop of 10% on the same three months last year.
During the quarter, RIM shipped some 10.6 million Blackberry smartphones and about 200,000 Blackberry PlayBook tablets, which was well below analysts' expectations.
Following the results announcement, RIM's shares fell by as much as 10% in after-hours trading in New York.
The Canadian firm said it expected things to improve in the third quarter though, forecasting shipments of between 13.5 million and 14.5 million smartphones and revenues of between $5.3bn and $5.6bn.