(By Balaseshan) BlackBerry maker Research In Motion Ltd. (NASDAQ:RIMM) reported wider-than-expected first quarter loss due to lower revenue and a decline in smartphones as well as tablets shipment, sending its shares down 1.42% in aftermarket.
Looking ahead, the Blackberry maker forecasts an operating loss in the second quarter and it expects the next several quarters to continue to be very challenging for its business based on the increasing competition, lower handset volumes, potential financial and other impacts from the delay of BlackBerry 10.
Loss for the first quarter was $518 million or $0.99 per share, compared to a profit of $695 million or $1.33 per share last year. Adjusted loss for the latest quarter was $192 million or $0.37 per share.
Revenue fell 43% to $2.81 billion.
Analysts had expected a loss of $0.01 per share on revenue of $3.11 billion.
Gross margin tumbled to 28.0% from 43.9%.
During the quarter, RIM shipped about 7.8 million BlackBerry smartphones, down from 13.2 million smartphones last year. The company shipped about 260,000 BlackBerry PlayBook tablets, down from about 500,000 tablets last year.
In addition, RIM announced the appointment of Steve Zipperstein, former General Counsel of Verizon Wireless, as its Chief Legal Officer. Zipperstein joins Kristian Tear, Chief Operating Officer and Frank Boulben, Chief Marketing Officer as the latest additions to RIM's executive management team.
RIMM closed Thursday's regular session up 0.44% at $13.73. The stock has been trading between $12.45 and $57.85 for the past 52 weeks.