Research in Motion Misses Estimates, Suspends Guidance, Announces Management Changes; Stock Loses 4%

Research in Motion

released its fiscal fourth quarter earnings after the closing bell on Thursday. The company reported a GAAP net loss of $125 million or $0.24 per share, compared to net income of $934 million or $1.78 per share, in the year ago period. On an adjusted basis, Research in Motion reported non-GAAP net income of $418 million or $0.80 per share. This compared to Wall Street consensus EPS estimates of $0.81. Revenues for the fourth quarter came in at $4.2 billion, which was a 25% decline from $5.6 billion in the year ago quarter. This came in below Wall Street analysts' consensus estimates of $4.54 billion. Blackberry shipments for the quarter were 11.1 million and PlayBook tablet shipments were 500,000. Looking ahead, RIMM suspended specific quantitative guidance and said that it expects continued pressure on revenue and earnings throughout fiscal 2013. In addition, the company said that Jim Balsillie, who is the founder, former Co-CEO of the company, and director has resigned from the company's board. Research in Motion also announced that its CTO, David Yach, will be retiring after 13 years with the company. Also, Jim Rowan, COO, Global Operations, has left the company to pursue other interests. In Thursday's after hours trading session, RIMM shares were last trading 4.08% to $13.15.