BLACKBERRY IS KILLIN IT SICK!! Research in Motion 4Q Profit Soars: Financial News - Yahoo! Finance

Research in Motion 4Q Profit Soars
Wednesday April 2, 6:43 pm ET
By Rob Gillies, Associated Press Writer

Research in Motion 4th-Quarter Profit and Sales More Than Double TORONTO (AP) -- Research In Motion Ltd. said Wednesday its fiscal fourth-quarter profit and sales more than doubled as the BlackBerry maker beat expectations and shrugged off concerns that a slowdown in the U.S economy is hurting business.

For the quarter ended March 1, the Canadian company earned $412.5 million, or 72 cents per share, up from a profit of $187.4 million, or 33 cents per share, in the same period a year earlier.

Revenue more than doubled to $1.88 billion from $930 million.

U.S.-traded shares in RIM rose $4.91, about 4 percent, to $120.70 in after-hours trading Wednesday after closing at $115.79.

Analysts, on average, had expected a profit of 70 cents per share, according to a poll by Thomson Financial.

Waterloo, Ontario-based RIM has been targeting the consumer market after enjoying success in the corporate market for years. RIM's push e-mail software allows customers to access their e-mail on their wireless devices in real time.

"It's much more of a mainstream thing," co-CEO Jim Balsillie said on a conference call with analysts.

Balsillie said RIM hasn't seen any signs of a slowdown in its business because of a slowing U.S economy.

Research In Motion Ltd. says it added 2.2 million new subscribers during the quarter, bringing its total to more than 14 million. And it shipped about 4.4 million smart phones.

Peter Misek, an analyst with Canaccord Adams, called it a "monster quarter" and said RIM has benefited from Apple's introduction of the iPhone, which brought attention to the smart phone market.

"People are starting to realize, 'Why should I buy a Razr when I can buy a BlackBerry or an iPhone?' I think the iPhone was the single biggest blessing RIM ever had," Misek said.

Misek said sales of the BlackBerry are accelerating.

"It continues to take market share. They are the market leader," Misek said.

The company said it expects earnings per share in the first quarter of its fiscal 2009 between 82 cents and 86 cents per share.

Duncan Stewart, president of Duncan Stewart Asset Management, said he is astonished that a company the size of RIM has doubled its revenue. He called RIM recession-proof.

"People may be spending less money on cars, they be spending less money on their houses, but it turns out the BlackBerry is the one essential," Stewart said.

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