RIM’s results could come as a disappointment to some investors who were looking for a blowout quarter. But the company continued to post some strong subscriber numbers.
Shares of BlackBerry maker Research In Motion Ltd. dropped about 7 percent after the closing bell on Wednesday as it reported results, including revenue that just missed expectations, and revealed that an informal inquiry by the U.S. Securities and Exchange Commission into stock-option grants has been upgraded to a formal investigation.
Shares were down at $135.92 in electronic trading after closing at $146.02 on Nasdaq.
Research In Motion Ltd. said U.S. regulators have stepped up their informal inquiry into how the company accounted for stock option grants into a full-fledged formal investigation.
The news came as the company released its year-end results, posting a 66-per-cent rise in sales and one million new subscribers for its BlackBerry wireless devices in the fourth quarter.
The results are preliminary pending a restatement related to an internal investigation of RIM’s past option grants. RIM has said its own review of its stock option granting practices is complete, but it needs more time to complete a restatement of previously filed financial statements going as far back as its early days as a public company in 1997.