RIM BlackBerry Q2 2013 Results: It’s Just a Flesh Wound
Research In Motion (NASDAQ: RIMM), the beleaguered BlackBerry smartphone maker, will live to fight another day. Although Q2 2013 revenue plummeted 31 percent to $2.9 billion and net income shifted to a $235 million loss, the results still beat Wall Street’s expectations and RIM’s stock jumped more than 15 percent in after hours trading. No doubt, anxious BlackBerry 10 app developers and channel partners are breathing a collective sigh of relief. But here’s the best news of all…
RIM’s cash, cash equivalents, short-term and long-term investments increased by approximately $100 million to $2.3 billion at the end of the second quarter, a sign that the company should remain strong enough amid the march toward BlackBerry 10’s anticipated launch in early 2013.
During the quarter, RIM said it shipped roughly 7.4 million BlackBerry smartphones and approximately 130,000 BlackBerry PlayBook tablets. Sure, Apple iOS and Google Android apparently command more than 85 percent of the smartphone market. But RIM is signaling that it has a fighter’s chance in the smartphone market.
Still, the company will need to carefully transition from current BlackBerry 7 devices to the BlackBerry 10 launch. On the one hand, the company can’t afford to stall its BlackBerry 7 sales ahead of BlackBerry 10’s arrival. But on the other hand, RIM must continue to get developers and customers excited about the platform shift.