Smartphone maker reports profit during fiscal third quarter due to favorable tax settlement.
Research in Motion posted a profit during the fiscal third quarter due to a favorable tax settlement, but it also saw a considerable decrease in the amount of subscribers.
The BlackBerry developer reported a profit of $14 million, which equates to 3 cents a share. Comparatively, the firm made a profit of $265 million in 2011 during the same period, which was 51 cents a share. This year's Q3, meanwhile, saw revenue decreasing by nearly half to $2.72 billion. It reported a loss of $114 million, or 22 cents a share.
The results, however, were better than what Wall Street expected. RIM was foreseen to post a loss of 35 cents a share on revenue of $2.66 billion. RIM's stock increased by 7.6 percent to $15.19 in after-hours trading following the release of the profits statement.
RIM's customer base, though, decreased by 1 million to 79 million subscribers during the same period. The company shipped 6.9 million BlackBerry smartphones and 255,000 PlayBook tablets.
RIM stressed that it would face continued pressure during the next quarter; the firm will consider using "pricing incentives" to ship BlackBerry 7 devices, as well as potentially lowering its service fees to keep its customers and spearhead growth.
Due to the potential promotional activity and the marketing investment pertaining to BlackBerry 10, RIM expects to post another operating loss during the fiscal fourth quarter. The platform will launch worldwide on January 30, which is the date where the firm will officially reveal the first devices powered by the upcoming mobile operating system.