BlackBerries still in demand

Johannesburg, 24 Jun 2009

Toronto Stock Exchange-listed Research In Motion (RIM) added 3.8 million BlackBerry subscriber accounts in the first quarter of the year, taking total subscribers to about 28.5 million.

Although local sales figures have not been released, Dot Field, chief communications officer at the Vodacom Group, says it has seen tremendous interest in its various smartphone offerings, including the BlackBerry.

Deon Liebenberg, regional director for RIM sub-Saharan Africa says, in SA, the BlackBerry solution and BlackBerry smartphones have been well received by consumer, as well as SME and enterprise customers.

RIM, which is also Nasdaq-listed, shipped about 7.8 million devices and grew revenue for the first quarter to May to $3.42 billion, compared with $3.46 billion in the previous quarter, and up 53% from $2.24 billion in the same quarter of last year.

About 81% of revenue in the first quarter came from devices, with services accounting for 13%, software for 2%, and 4% coming from other revenue, RIM says.

Joint-CEO Jim Balsillie says the company is starting the 2010 financial year with “strong financial performance and impressive market share gains, including a 55% share of the US smartphone market, according to IDC's latest estimate”.

He says the BlackBerry product portfolio is driving demand around the globe, and the company continues to penetrate new markets. “We are particularly excited about the strength of our product portfolio for fiscal 2010 and we are looking forward to driving continued growth and profitability in our business throughout the remainder of the year.”

Net income during the quarter was $643 million, or $1.12 on a diluted per share basis. This compares with net income of $518.3 million, or $0.90 per share diluted, in the previous quarter and net income of $482.5 million, or $0.84 per share diluted, in the same quarter last year.

Stripping out unusual items, adjusted net income was $564.4 million, or $0.98 per share on a diluted basis.

Revenue for the second quarter of the year to August is expected to be in the range of $3.45 billion to $3.7 billion, with a gross margin of 43% to 44%.