Research in Motion, Ltd. (TSE:RIM) has been circling the drain for some time now, between falling market share, the BlackBerry 10 platform that’s taken nearly two and a half years to bring to market, and incompetent management. Long profitable, the company posted its first operating loss in many years last quarter.
Now as RIM’s earnings report nears, analysts are lining up to predict a bloodbath.
Wedge analyst Brian Blair is among the majority predicting a forced fire sale. He opines to AllThingsD:
We see a steep drop off in revenues and units near term, punctuated by a drop in subscriber adds, and an OS refresh that is largely ignored by carriers and consumers alike, driving RIM into a forced sale in 2013.
This is going to be the third inning of RIM’s death spiral.
A year ago RIM earned $1.33 USD per share on revenue of $4.9B USD. This quarter it’s expected to circle down to a loss of $0.03 USD per share on revenue of $3.1B USD.
As bad as the numbers may look for June it’s expected to get much worse for the second quarter, which will be reported in August. Jefferies analyst Peter Misek told All Things Digital, “It’s going to be terrible with a scoop of worse for August.”
Analyst predict more destruction for the Rimdenburg.
[Image Source: Jason Mick/Global Tech News LLC]
With no real viable product on the smartphone market, RIM is expected to plummet further as it tries to peddle its defunct BlackBerry 7 operating system in the face of Samsung Electronics Comp., Ltd.’s (KSC:005930) blockbuster Galaxy S III and Apple, Inc.’s (AAPL) upcoming sixth generation iPhone.
In other words, as bad as it is now, it’s likely to get far worse for RIM soon. Don’t be surprised if RIM’s hapless management retreats back into their Saturday morning cartoon fantasy land amid this grim dose of reality.
The piracy police made one 9-year-old a very unhappy camper
ZMAX will come with a Snapdragon 400 processor and 720p display
UC Davis dares to go where Toyota won't with the Prius
An Apple spokesperson fires back over Microsoft's latest commercials
Engadget gets the scoop on Dell's latest "ultra-portable" notebook