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RIM loses patent-infringement ruling
August 5, 2003
The Waterloo, Ontario-based company said revenue would be in the $123 million to $126 million range, exceeding the previous estimate of $105 million to $115 million. Income is also expected to exceed forecasts and will be in the 2 cent to 5 cent range per share, the company said. Excluding costs associated with a patent lawsuit brought by holding company NTP, the company's income is between 7 cents to 11 cents per share.
Earlier this month, a judge ruled in favor of NTP, awarding monetary damages and fees.
RIM attributed its upbeat results to a good summer.
"RIM's business generated higher-than-expected revenue during the summer months resulting in a record quarter," RIM Chief Financial Officer Dennis Kavelman said in a statement. "Global demand for BlackBerry accelerated in both enterprise and prosumer market segments as RIM fulfilled orders to its carrier partners to satisfy new subscriber growth, hardware upgrade sales and retail channel expansion requirements."
The company expects the number of new subscribers it signed up in its fiscal second quarter to be between 94,000 to 97,000, exceeding its previous estimate of 80,000 to 90,000. The total number of subscribers exceeds 700,000, the company said.
The company will further discuss its second-quarter results on Sept. 25, when it will hold its quarterly call with investors and analysts.
BMO Nesbitt Burns Research analyst Ray Sharma, who earlier in the day raised RIM's outlook, said in a research note that demand remained brisk with several carriers, including T-Mobile, mmo2, Rogers Communications, AT&T Wireless, Nextel Communications and Cingular Wireless, and that early reception of the new 6200 and 7200 series products was good. Sharma cautioned that RIM shares had been strong recently in anticipation of good second-quarter results.
RIM shares closed up just over 1.5 percent, or 46 cents, at $28.31. In after-hours trading, shares shot up about 20 percent, or $5.55, to $33.86.
