Research In Motion Tanks on Q2 Earnings Release

Shares of Research In Motion RIMM are trading lower in the after-hours following the release of the company's Q2 earnings results. Currently, shares are lower by 6.53%, trading at $27.61; they ended the regular session lower by 0.61%, at $29.54. Research In Motion reported Q2 adjusted EPS of $0.80 on revenues of $4.2 billion. Revenues decreased 10% year over year and 15% sequentially. The revenue breakdown for the quarter was approximately 73% for hardware, 24% for service, and 3% for software and other revenue. Revenue for the third quarter of fiscal 2012 ending November 26, 2011 is expected to be in the range of $5.3-$5.6 billion. EPS in expected to be in the range $1.20-1.40. "We successfully launched a range of BlackBerry 7 smartphones around the world during the latter part of the second quarter and we are seeing strong sell-through and customer interest for these new products. Overall unit shipments in the quarter were slightly below our forecast due to lower than expected demand for older models," said Jim Balsillie, Co-CEO at Research In Motion. "We will continue to build on the success of the BlackBerry 7 launch to drive the business as we focus our development efforts on delivering the next generation, QNX-based mobile platform next year." Research In Motion Limited is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. RIM provides platforms and solutions for access to information, including e-mail, voice, instant messaging, short message service, Internet and intranet-based applications and browsing.