RIM Lowers Guidance Amidst Poor Q1

BlackBerry reported earnings of $695 million for the first quarter, missing its own lowered revenue forecast and prompting it to cut its outlook for the rest of the year and announce it will start layoffs during the second quarter. (See RIM Predicts Weak Q1.)

The BlackBerry maker shipped 13.2 million smartphones in the quarter and 500,000 PlayBooks in the tablet's first six weeks on the market. (See RIM PlayBook: LTE & HSPA+ Versions Coming.)

RIM made a net profit of $695 million, or $1.33 a share, on revenue of $4.9 billion. A year earlier it reported a profit of $769 million or $1.38 a share on revenues of $4.24 billion.

Analysts polled by FactSet expected a profit of $1.32 per share on revenue of $5.1 billion.

Shares of RIM are down $5.40 (15.28%) to $35.47 in after-hours trading.

— Sarah Reedy, Senior Reporter, Light Reading Mobile

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