BlackBerry Gives Wall Street A Raspberry

BlackBerry maker Research in Motion Ltd. (RIMM) watched its stocks take a dive Thursday after reporting disappointing second-fiscal-quarter earnings.

RIM’s shares plunged more than 10 percent in after-hours trading after the Canada-based company showed earnings of $475.6 million compared to $495.5 million during the same period last year.

RIM took a big charge – $112.8 million – for settling a patent spat with Visto Corp. If it hadn’t been for that charge, RIM would have earned $588.4 million, it said.

RIM also sold fewer BlackBerry devices than analysts and the company had expected. That, combined with a third-quarter forecast that fell short of analysts’ predictions, contributed to RIM’s ailing stock price.

The company is trying to compete with the likes of the iPhone, a tough proposition given the iPhone’s popularity, technical problems with some of the newer BlackBerry devices, and increasing R&D costs.


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