Sorry!! The article you are trying to read is not available now.
Politics And Regulation
Trading And Investing
How To Trade
How To Invest
Wall Of Worry
Hoofy & Boo
From The Buzz & Banter
MV Education center
t3 live subscriptions
RIM's Co-CEOs Congratulate Each Other for Disastrous Performance
June 17, 2011 10:22 AM
Someone remind Jim Balsillie and Mike Lazaridis that they run Research in Motion and not Apple.
During yesterday's earnings call, the company gave a dismal forecast for the year ahead. Despite a slight gain in revenue from the same quarter last year and a commendable jump in international revenue, there wasn't much good news to report.
Net income is down about 10% from the same quarter last year -- $695 million versus $769 million. And with a product lineup choked by delays, RIM slashed its earnings forecast for the fiscal year. It now expects earnings per share to be within the $5.25 to $6 range, after originally announcing a lofty full-year EPS of $7.50.
The company acknowledged the BlackBerry PlayBook tablet launch didn't go as smoothly as it had hoped, even though it shipped -- not sold -- 500,000 units. And its newest devices will likely miss the back-to-school push by many carriers -- right about when Apple and Google steal the spotlight with the debut of the iPhone 5/4S and a fleet of solid Android devices. Even Windows Phones will be entering a second generation by then.
And yes, there will be layoffs. Or as RIM puts it, a "realignment" within a "cost optimization program."
But both Balsillie and Lazaridis couldn't help but pat each other on the back for the job they've done -- specifically defending their co-CEO positions.
"Mike and I have been partners in this business for almost 20 years, and during that time RIM has grown to $20 billion in annual revenue," Balsillie said. "We are currently approaching the tail end of a significant transition in our business, that, frankly, few companies would have survived. But we have. And I believe, and I think Mike would agree, that neither of us could have taken RIM this far alone."
"I agree with Jim's comments," Lazaridis replied. "Our co-CEO arrangement is what led to RIM's success over the past two decades."
They even addressed outsiders' concerns for the company's performance and claimed they're not seeing the big picture. "RIM has taken a unique path and the reason why we do things might not always be obvious from the outside," Lazaridis said.
But delusion hit a high note when Lazaridis rattled off a series of self-congratulatory sentiments that stand in stark contrast with the year ahead. "This is fun! We're changing the world! We're transforming the way people work! We birthed a tablet in a year! We transitioned to a new operating system!"
Good God, man.
Two months ago
, Lazaridis asked -- in the face of a plummeting market share, a loss of developers, disastrous product launches, and a grimmer forecast -- "Why is it that people don't appreciate our profits?"
You may get that answer, Mike, at the next shareholders meeting in July.
Research in Motion CEO Admits to Being Clueless
Things Aren't Looking Good for Research in Motion
For an investment angle on these and many more tech stocks, take a
FREE trial to the TechStrat Report
by Sean Udall.
No positions in stocks mentioned.
RESEARCH IN MOTION
RESEARCH IN MOTION EARNINGS CALL
RIM EARNINGS CALL
RIM FIRST QUARTER
RESEARCH IN MOTION PROJECTIONS
RESEARCH IN MOTION FORECAST
All Things Digital
See All Tickers »
More From Minyanville
Trading and Investing
MV Education Center
Buzz & Banter
Cooper's Market Report
The Options Strategist
Directory of Terms
T3 Live Subscriptions
Buzz and Banter.com
Ruby Peck Foundation
Terms and Conditions
Follow Minyanville on Facebook
Follow minyanville on Twitter
Follow Minyanville on Linkedin
Subscribe to Our RSS Feed
©2017 Minyanville Media, Inc. All Rights Reserved