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
  • BB7 USERS WILL NOT BE AFFECTED BY SERVICE FEE CHANGES, WILL ONLY AFFECT BB10 USERS

 

 

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