Saturday, June 16

RIM expects loss, "significantly" plans job cuts


David manning / REUTERS

RIM CEO Thorsten Heins is trail in Orlando in early May during a BlackBerry.

At 5 pm ET updated: Research in the movement, which once revolutionized the mobile industry with the ubiquitous BlackBerry, is the time, how it tries to start a new line of smartphones while fight against race to stay afloat.

Amid reports that the company plans to eliminate at least 2,000 jobs, said RIM CEO Thorsten Heins late Tuesday are the next few quarters, "difficult" and that the company to check two investment banks had suspended their activities.

Heins also said in a statement that the company expected ends an operating loss for the current quarter, next week. RIM shares fell heavily in Nachborslicher trade after the news.

Heins, said that headcount reductions in seeking $1 billion in the annual expenditure, save the company with plans for "significant" progress is even though he confirm not the recent reports that the company plans to eliminate at least 2,000 jobs worldwide. RIM has approximately 16,500 employees worldwide.

Analysts are doubtful that the maker of the BlackBerry, a one-time darling of the technology industry Canada, can enough, or zoom out enough that repel it stiff competitive faces of Apple's iPhone and Google's Android software challenge.

"We say that is the only way for RIM partner with someone to be purchased or engage in a software company, and I, that the path at the end of the year, the management team became very clear think", Jefferies & company said analyst Peter Misek that includes wireless companies.

RIM has faced declining market share and turnover devices such as iPhones in recent years as a Smartphone and Android have increased before the BlackBerrys.

The Canadian company is its recovery hopes on the launch of the BlackBerry 10-the mobile platform of the next generation that will power a number of new smartphones that is expected later in the year on the market freeze,.

Analysts like Jim Moorman of S & P Capital IQ are wondering whether the introduction of the new operating system is coming too late, market share lost to industry to take back heavyweights like Apple, Google and Samsung.

Moorman notes that the long-awaited - and verzogerte--BlackBerry comes 10 start updated shortly after takeoff Smartphones from Samsung and HTC and Apple is expected to be in the fall to unveil new iPhone.

"This is not a good moment for [RIM] on the introduction of a new product," he said. "This concerns for me." "It is an already-delayed start and it is in the middle of some other important product launches coming out."

RIM faces headwinds on the other hand Moorman notes, including a declining customer base. RIM has added new subscribers to their services at a healthy clip of about 4.5 million users per quarter for the last seven quarters, but the pace slid to 2.9 million in the last quarter, he said.

At the same time, sales of BlackBerry devices, down 6.5 percent in the last fiscal year decline are ended in March from the previous year said Moorman. And soon make a third large write-off on the unsold smartphones and PlayBook tablets which is expected to companies, analysts say.

The strengths of RIM BlackBerry are his long batter life and security, benefits for business, Moorman notes, both but he adds, that other manufacturer device beg are to chip away at RIM "special sauce," improvement of batter life of their devices. And global network outages for BlackBerry may be some business customers have disabled a number of high-profile.

RIM also perennial problems is on the C-suite level, analysts say. Joined after RIM co CEO Mike Lazaridis and Jim Balsillie from its leading role in this year a new CEO, Thorsten Heins, Senior Executive at the company, stepped forward was relatively unknown.

Despite the new leadership, analysts say that the company is the same old problems, including competition, chronic delays in the introduction of new technology and a brand that has lost its position among consumers.

"It seems that the new management team on the reconstruction of the company brand with the BlackBerry-10 platform is set," said Moorman. "I think it will be a struggle for them." "I think we'll see continue to muddle through RIM, but it will be a tough battle."

"I think RIM will continue for a while, bleeding, if the share price gets so cheap, be it an acquisition target, but that's not what wants the company," he added. "they are probably just waiting to see how the introduction of BlackBerry 10 goes."

Anindya Ghose, Associate Professor of management at New York University, Stern School of business, expects that RIM the company must pull out a new helping visionary leader by his company Tailspin.

"To it clearly say they need someone like Steve jobs," he said.

Ghose points as Steve Jobs Apple in the late 1990s again after ten years earlier years have thrown away. He was confronted with a company with low morale, stagnant sales and little sense of direction, and radical changes, the company turn around initiated.

"You need a visionary like him," Ghose said.

Misek of Jefferies says that RIM would do well, turn their hardware store into a niche company and other cell phone manufacturers to offer its Smartphone software like Apple. At this point the probability of RIM is another company acquired by lean looks, he added.

"It's value that can be found in these plants?" he asked.

"With a market capitalization of about $6 billion and net cash of over $2 billion, the value of his company's $4 billion," said Misek.

"If that not tempting enough for someone who buy this company I know not what." Basically, if you pay a 25% bonus, you can now buy research in motion for $5 billion, and that's a very reasonable price. It is already cheap and it is not one attract buyers, "he added."

Scott Sutherland, Wedbush securities and James Moorman, S & P Capital IQ, discuss why they have lowered their 12-month price target on research in motion and whether they see a turnaround for the company in the coming months.

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