RIM warns of 'challenging' quarters, shares fall
SAN FRANCISCO (MarketWatch) -- Shares of
RIM (RIMM) stock was down more than 10% in after-hours trading after the company announced that it has hired J.P. Morgan and RBC Capital Markets to look into "the feasibility of various financial strategies."
In a statement, Chief Executive Thorsten Heins said: "RIM is going through a significant transformation as we move toward the BlackBerry 10 launch, and our financial performance will continue to be challenging for the next few quarters." Read "RIM getting the for-sale sign ready."
He cited the "ongoing competitive environment" that is "impacting our business in the form of lower volumes and highly competitive pricing dynamics in the marketplace. … We expect our Q1 results to reflect this, and likely result in an operating loss for the quarter."
However, Heins also said that the company expects "to further increase our cash position in Q1 from the approximately $2.1 billion we had at the end of fiscal 2012."
RIM also announced that it has "engaged" J.P. Morgan Securities and RBC Capital Markets "to assist the company and our board of directors in reviewing RIM's business and financial performance."
Heins said the investment banks "have been tasked to help us with the strategic review we referenced on our year-end financial results conference call and to evaluate the relative merits and feasibility of various financial strategies, including opportunities to leverage the BlackBerry platform through partnerships, licensing opportunities and strategic business-model alternatives."
RIM shares have tumbled more than 20% this year as the Waterloo, Ontario-based company struggles to compete with stronger rivals in the mobile marketplace, led by
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