Research in Motion ("RIM"), added around 680,000 BlackBerry subscribers, bringing the total to 5.5 million. The revenue from the sale of BlackBerry devices accounted for 71% of the total revenue and the firm shipped 1.2 million units during the quarter. The company is planning to launch new products that are likely to be thinner, and lighter. For the Q2, RIM is expecting EPS of 67 cents to 73 cents, with revenue in the range of $620 million to $650 million.
RIMM shares rose $3.78 to $69.76 after the Canadian firm forecast sales in the range of $620 million to $650 million for the quarter ending in September, in line with analysts' expectations of $636 million. Research in Motion said it expected to add between 675,000 and 700,000 subscribers during the quarter. The company forecast earning per share between 67 and 73 cents, including stock-option costs, compared with the average analyst estimate of 72 cents a share.
RIM also reported a quarterly profit that slipped slightly, even though sales surged, as higher expenses for employee stock options and other costs offset stronger corporate demand for its BlackBerry communication devices.
The company was expected to earn 65 cents a share, but ended up 67 cents a share. Sales rose to $613.1 million from $453.9 million a year ago, slightly more than analysts' expectations of $602 million.
Research In Motion had cut its forecast for the quarter as uncertainty surrounding a long-running patent lawsuit caused some corporate users to delay purchases and slowed the rollout of new BlackBerry service by some wireless providers. RIM settled the suit in March for $612.5 million.
Before Friday, RIM shares had been essentially unchanged this year, versus an almost 18% gain for Palm, as investors worried that some of uncertainty surrounding the lawsuit may have cost RIM market share at a critical stage.