Research in Motion 1st Quarter Fiscal 2011 Conference Call Summary

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We’re now into the 2nd quarter of RIM’s fiscal year 2011 and today RIM hosted a conference call summarizing the first quarter as well as a little insight into what to expect in the next. As with every conference call, RIM made it clear that growth opportunities for the company are primarily focused in international markets, as well as converting feature phone users to smartphone users. It would be a real shame to see RIM become a company focused on making smartphones with low ASPs. A race to the bottom would probably mean selling more devices in the short term, but they would lose a lot of respect from the hardcore smartphone users who need innovative devices that cost a lot.

Highlights of the first quarter fiscal 2011 include:

  • Revenue grew 24% over the same quarter last year to $4.24 billion
  • Earnings per share in the first quarter increased 41% year over year to $1.381
  • BlackBerry shipments grew more than 43% over the same quarter last year to 11.2 million and RIM shipped its 100 millionth BlackBerry during the quarter
  • BlackBerry subscriber account base grew approximately 60% over the prior year to 46 million, with 4.9 million net new subscriber accounts added in Q1
  • RIM’s Board of Directors approved a share repurchase program to purchase for cancellation up to 31 million common shares

Jim Balsillie had his usual address to shareholders and there were a few interesting tidbits included in the announcement. Jim hinted that we’ll see two new high-end devices shipping soon, which sound like the Bold 9800 slider and the clamshell 9670. We’re also expecting BlackBerry 6 to ship by the end of September.

During a conference call to discuss the results, the company also hinted that there would be two new high-end devices shipping soon. It wouldn’t say what these were but said they would contribute to its summer quarter ending in August; at least one would have its effect on revenue spill over to the fall, the company said. One of these is unofficially known to be the BlackBerry 9800, RIM’s first touchscreen slider. BlackBerry OS 6 is due to ship by the end of September and is known to be shipping first with the 9800.

Head over to RIM’s site for the full press release with detailed financials.

  • Frank Castle

    I question is there even “innovative devices that cost a lot” anymore? Since Apple's smoke and mirrors $199 price point I doubt we will ever see a device over $349. I don't know if I agree with the “race to the bottom”. RIM's core is messaging. There will likely always be a market for messaging centric devices. Hell there's still pagers out there.

    If anyone expects RIM to put out something like Android or iOS4 don't understand RIMs focus on security. Now they could split off into a consumer focused OS with a flashy GUI and all the things people want in a gadget phone.

    The market is huge with some international regions just getting mobile email which makes sense for RIM to pursue with low end devices. Many parts of the world are not going to drop the money america spends of smartphones.

  • Donny

    An astute observation ~ I concur. I can see RIM doing another product brand specifically for consumers not needing the corporate remote administration. Anyone else notice RIM advertising their corporate name brand along with the BlackBerry brand more lately?!!

  • http://www.perfectoled.com electronic display

    cant wait it now We’re also expecting BlackBerry 6 to ship by the end of September.

  • rocmon

    BlackBerry is a cool device, they serve business well and consumers love the bbm exclusivity…

  • Reality

    Wow you guys are so delusional…the market has spoken and RIM is going to be a ghost of what it was.

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