Earnings: RIM To Cut 5,000 Jobs, Blackberry 10 Delayed Till 2013

Yesterday was a tough day for RIM’s CEO Thorsten Heins as he reported the first quarter earnings for 2013 and it was pretty bad, and unfortunately it follows the previous quarter and many before that.

Highlights of Research In Motion’s Q1 2013 Earnings:

Revenue for the first quarter of fiscal 2013 was $2.8 billion, down 33% from $4.2 billion in the previous quarter and down 43% from $4.9 billion in the same quarter of fiscal 2012. The revenue breakdown for the quarter was approximately 59% for hardware, 36% for service and 5% for software and other revenue. During the quarter, RIM shipped 7.8 million BlackBerry smartphones and approximately 260,000 BlackBerry PlayBook tablets

  • Shipments of BlackBerry smartphones were 7.8 million and shipments of BlackBerry PlayBook tablets were approximately 260,000
  • BlackBerry 10 smartphone launch now scheduled for Q1 of calendar 2013
  • Restructuring efforts underway that will include a workforce reduction of approximately 5,000 employees as part of RIM’s efforts to realize over $1 billion in cost savings, based on RIM’s Q4 FY2012 run rate
  • Launched World Tour BlackBerry Jam developer sessions in 23 countries resulting in strong adoption and support by application and developer partners for BlackBerry 10 platform
  • BlackBerry App World continues to grow with over 89,000 applications available
  • The overall BlackBerry subscriber base continued to grow, and the subscriber base grew in all regions except for North America
  • RIM names Steve Zipperstein, former General Counsel of Verizon Wireless, as Chief Legal Officer

OUCH! Not much to add to this, the above really says it all, more cuts coming and the saving grace (Blackberry 10) is being delayed until sometime next year.  Sigh.