Have RIM really disappointed investors? Revenue details
Not good news for those who have invested in RIM (Research In Motion) as disappointing revenues announced on Thursday.
The revenues announced on Thursday were a lot lower than expected and left a lot of disappointed investors with $3.53 billion against $3.63 billion expected. Revenue guidance for the subsequent quarter was also lower than expected although earnings per share reported for the second quarter and guided for the third actually exceeded expectations.
The lower stock price is the bull case for RIM. It trades at 42% discount to trading levels in June. Although still extremely strong is the dominant position in the enterprise delivering mobile, and secure email. Those margins for enterprise customers are much higher than for consumers yet recent quarters results have been mainly to consumers and not enterprises. Source – forbes.com