BlackBerry maker Research In Motion (RIM) said it profited by $482.5 million ($0.84 per share) for Q1 2008, influenced by strong consumer sales combined with increased spending for marketing.
Net income rose from the previous quarter’s $412.5 million and more than doubled last year’s Q1 income of $223.2 million. Revenue reported at $2.24 billion, compared to $1.88 billion in the previous quarter and $1.08 billion last year.
“We are pleased to report another record quarter with revenue increasing 107% as the popularity of the BlackBerry platform continued to spread in business, government and consumer segments. Our comprehensive technology and business strategies continue to reap strong results in the market and RIM is well-positioned to build on its momentum throughout the remainder of fiscal 2009,” said CEO Jim Balsillie, in a prepared statement.
The company is close to shipping its 40 millionth BlackBerry device and has $2.08 billion in cash, officials said. It has 16 million subscribers, of which 2.3 million are new subscribers from the 5.4 million devices the company shipped in Q1.
Meanwhile, Q2 revenue is expected to be $2.55-$2.65 billion, with 2.6 million new subscribers.
Avian Securities analyst Matt Thornton said the top-side results were disappointing but understandable because of RIM’s increased spending. However, that’s necessary as the company markets to an increasingly diverse customer base and upgrades its network infrastructure after recent outages, he said. Also, “Having the Curve device on the shelves probably cannibalizes some of the enterprise sales,” he noted.
Thornton also said he expects the touchscreen BlackBerry Thunder to reach Verizon and Vodafone stores in late September, positioned as a competitor to the Apple iPhone. He also expects the clamshell BlackBerry KickStart to be available at the end of this calendar year.
RIM has not commented on either device, nor on wider availability for the recently announced BlackBerry Bold which initially will be exclusive to AT&T. That device is being delayed for a variety of technical problems, according to published reports.