RIM's share price tumbles as earnings fall short of analyst estimates

RIM's share price tumbles as earnings fall short of analyst estimates

RIM has announced its latest quarterly financial figures, and if there was any lingering doubt that the Canadian firm is going through difficult times, there won't be now.

The company has fallen short of analyst estimates in both revenues and handset sales – estimates that had already been adjusted downwards at the end of April.

Revenue for the quarter was $4.9 billion, well down on the expected $5.5 billion, while device shipments came in at 13.2 million, short of the 13.5 million that had been expected.

In terms of actual income, RIM pocketed $695 million over the first three months of the year versus $769 million for the same period last year.

“Fiscal 2012 has gotten off to a challenging start,” RIM boss Jim Balsillie said in a statement. “The slowdown we saw in the first quarter is continuing into Q2, and delays in new product introductions into the very late part of August is leading to a lower than expected outlook in the second quarter.”

In other words, don't expect the downward trend to reverse itself any time soon. RIM says it plans to "streamline its operations" to save some cash, which – as we all know – is a fancy way of saying jobs will be cut.

The company's shares were trading 15% down in after-hours trading last night.

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