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RIM Chairman Resigns After Bleak Q4

Light Reading
LR Mobile News Analysis
Light Reading
3/29/2012

BlackBerry 's new CEO is making some big changes at the top, including the resignation of chairman and former co-CEO Jim Balsillie, as the company reported a loss of $125 million for the fourth quarter, Thorstein Heins's first in charge.

After keeping a low profile for his first two months as CEO, Heins is spearheading a few more executive change-ups, too. David Yach, CTO, Software, will be retiring from the company after 13 years, and COO of Global Operations Jim Rowan is leaving to pursue other interests, RIM said in its release. The spring cleaning comes after many weak quarters at the BlackBerry maker, none of which have been as bad as this past quarter.

The BlackBerry maker lost 24 cents a share on revenues of $4.2 billion in the fourth quarter. A year earlier, it reported a profit of $934 million or $1.78 a share on revenues of $5.6 billion.

RIM reported non-GAAP earnings of 80 cents per share. Analysts polled by Thomson Reuters expected non-GAAP earnings of 81 cents per share on revenue of $4.79 billion.

RIM shipped 11.1 million BlackBerry smartphones and 500,000 BlackBerry PlayBook tablets in the quarter. In the company's earnings release, Heins said RIM is undertaking a variety of initiatives including increased management accountability and process discipline to begin to regroup.

"In parallel, we are undertaking a comprehensive review of strategic opportunities including partnerships and joint ventures, licensing, and other ways to leverage RIM's assets and maximize value for our stakeholders," he said.

RIM will no longer provide specific quantitative guidance going forward, as it expects continued pressure on revenue and earnings this year.

Shares of RIM are up $0.06 (0.44%) at $13.73 in after-market trading.

— Sarah Reedy, Senior Reporter, Light Reading Mobile

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sarahthomas1011
sarahthomas1011
12/5/2012 | 5:37:37 PM
re: RIM Chairman Resigns After Bleak Q4


I'm going to need a drink after the call instead. It's depressing! But at least RIM finally sounds like they get that BIG changes are needed...not sure what took it so long.

Pete Baldwin
Pete Baldwin
12/5/2012 | 5:37:37 PM
re: RIM Chairman Resigns After Bleak Q4


Well that explains why the earnings release came out so late -- like 50 minutes after market close.


As Sarah was saying on Twitter: "RIM's taking so long I'm gonna give up and go have a drink...wait, NO, that's what they want us to do!!"

adisaraf
adisaraf
12/5/2012 | 5:37:25 PM
re: RIM Chairman Resigns After Bleak Q4


With flagging sales for Nokia smartphones, it possibly makes a good case for Nokia to look at BB as the phone Nokia (would like to acquire) and sell. RIM is struggling in positioning it against other smartphones like iphone, samsung, while Nokia is struggling to come out with a smartphone that is accepted as one.

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