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NEWS / BUSINESS NEWS
RIM Profits Surge But Shares Fall

By Branko Miletic | Thursday | 26/06/2008

Blackberry maker Research In Motion shares fell by 8 per cent, even as the company posted quarterly earnings that have more than doubled.


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According to Reuters, RIM revenue surged to $US2.24 billion in the three months ended May 31 -- up a whopping 107 per cent from a year earlier -- and the company added 2.3 million subscribers, or about 100,000 more than it expected.

About 60 per cent of the new subscribers came from outside the company's base of business customers, a plus for RIM as it works to diversify.
But first-quarter earnings of $US482.5 million, fell just short of the average estimate of analysts, according to Reuters.

The company is betting that new product launches, such as its recently announced BlackBerry Bold, will fuel growth for the balance of the year and beyond, despite a slowdown in the U.S. economy, according to the report.

 

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