RIM Posts Strong Quarter, Fueled by Wireless Products
Research in Motion Ltd. said earnings surged beyond expectations in its fiscal fourth quarter, fueled by subscriber growth for its BlackBerry two-way e-mail pager and shipments of its wireless hand-held products to AOL Time Warner Inc.
The news sent RIM shares up as much as 29% in after-hours trading to $28.19. The stock had closed off $2.82 at $21.93 on Nasdaq before the results were announced.
The Canadian company’s operating earnings surged 159% to $8.3 million, or 10 cents a share, as revenue climbed to $90.1 million from $25.8 million a year ago. Analysts on average were expecting earnings of 7 cents and revenue of $75 million.
RIM said it now expects to hit the low end of revenue estimates for the first and second quarters but said revenue for the full year should reach consensus estimates.
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