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Research in Motions Q3 2012 Earnings Call Highlights

The earnings call has started and I will try to do a rundown of what is said as it happens!

  • RIM is now a leaner and much more efficient organization – Heins
  • Most regions were stable or showed growth in users, but, the USA declined a lot which caused the net loss of users over the quarter – Heins
  • Reaction to BB10 from carriers has been “exceptional”
  • BB10 will be available “shortly” after Jan 30
  • 150 carriers now testing BB10
  • Heins believes RIM is in very strong financial shape, the balance sheet is terrific
  • RIM believes their abilities to handle the patent wars is very good, which will help them in the future
  • RIM plans to offer a range of services to go with BB10
  • BIS users will generate very little to no service revenue; however, enterprise users will continue to require to pay service fees – This is BIG
  • The whole model of service fees will be changing
  • Customers demand and respond to innovation and BB10 delivers on this request
  • Heins believes the company has stabilized and they will turn the corner in the next year
  • Next quarter will be rough due to combination of things including:  People not buying BB7 devices because they will wait BB10 and huge marketing budget
  • Current workforce is 13400 and layoffs are about 75% done
  • RIM will have many pricing tiers for services related to BIS/BES, this will allow them to dominate the enterprise market by offering the right services for each company that needs enterprise services
  • More info on these service fee changes will be announced once BB10 is launched
  • will offer additional services “beyond the traditional mobile device management”
  • Research and Development costs are the most they have been in 12 quarters



7 total comments on this postSubmit your comment!
  1. Talk about a Merry Christmas, Happy Hanukkah, Happy Kwanzaa, Happy Birthday, and a Happy New Year!!!!

    Finishing 2012 strong…ready to blast off in 2013.

  2. I have high hopes next year the public would brace Blackberry 10, literally I’m the only one using a Blackberry in the family and my friends too…

  3. I believe they ( RIM ) was ill-prepared to deal with the question about subscription revenues, which is a high margin profit generator.

    When it became apparent that those questions were not being answered, the stock started to tank.

    RIMM, should of anticipated those questions and at least had some prepared answers so as not send the stock tanking.

    • Agreed

    • I completely agree with you Jeff. RIM could have handled that a lot better. Although, we know the nature of analysts and how they react every little thing as if they’re girls seeing an insect. Common sense would say that RIM isn’t stupid and understands fully that subscription fees are a key revenue generator.

      I’m sure that even with the restructuring of fees that RIM has managed to find a better way of leveraging their new toolbox and toys to maximize benefit.

    • they did, analysts didn’t listen nor understand

      things will be cleared up today

      Heins has already been on CNBC

  4. I just saw his piece this morning on Bloomberg.

    I really want these guys to succeed. And I believe they can and hopefully will. I guess the trick with the subscription fees will have to deal with the consumer part of the market and how they can “convince” these folks that they need an additional product or service for a fee.


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