clock menu more-arrow no yes

Filed under:

RIM reports fiscal Q1 2013 earnings: cutting 5,000 jobs this fiscal year, $518m net loss

New, 55 comments

RIM has reported its earnings for fiscal Q1 of 2013, noting a GAAP loss of $518 million and lower phone shipments.

BlackBerry logo busted old (1020)
BlackBerry logo busted old (1020)

The press release for RIM's fiscal first quarter 2013 earnings has just hit the wires, and as expected, the news isn't good: the Waterloo, Ontario company will be shedding 5,000 jobs after reporting a GAAP loss of $518 million on revenue of $2.8 billion, which is down 33 percent from the quarter prior. Cash and equivalents on hand actually increased to $2.2 billion, but that's little consolation — 5,000 employees will be losing their jobs as part of the company's restructuring process, and worst yet, BlackBerry 10 has now been delayed into the first quarter of calendar year 2013. 7.8 million phones (way down from the over 11 million shipped last quarter) and 260,000 PlayBooks were shipped in the three-month period. After the staff reductions, RIM will be at around 11,500 employees, so it'll be shedding over 30 percent of its workforce.

"The Company expects the next several quarters to continue to be very challenging for its business based on the increasing competitive environment, lower handset volumes, potential financial and other impacts from the delay of BlackBerry 10, pressure to reduce RIM's monthly infrastructure access fees, and the Company's plans to continue to aggressively drive sales of BlackBerry 7 handheld devices," reads RIM's press release, noting that it expects another operating loss in Q2.

Full audio of the earnings call is below.