All now hinges on BB10 launch in Spring
Shares in Blackberry maker Research in Motion shot up by a fifth in New york last night [27th September 2012] after reporting a smaller than expected loss in Q2 of $363 million, compared to $643 million in the previous quarter.
Early next year RIM is due to launch a series of new handsets based on its BlackBerry 10 operating system and its reversal of fortunes on Nasdaq couldn’t be more timely. News that its losses were easing lifted its shares from near-record lows as investors looked more favourably on the firm’s future.
The Toronto-based manufacturer also revealed it had managed to build its global Blackberry subscriber base to 80 million global over the quarter though it still sold just 7.4 million Blackberrys, far fewer than analysts had hoped even when factoring in stiff competition from Apple and Samsung.
CEO Thorsten Heins told analysts that RIM’s cost-cutting programme was on track to save $1 billion in the current fiscal year and had already achieved savings of at least $350 million a year, allowing the firm to build up a war chest for its new launches.
Revenue for Q2 was $2.9 billion, up from $2.8 billion in Q1 but down 31 per cent from a year ago.
The overall figures were significantly better than feared, sending the stock 20 per cent up to $8.57 in after-hours trading.