Wow – what a day for RIM, I almost can’t keep up with the news that has happened over the last 24 hours, or even that last week for theWaterloo-based smartphone maker. The day started out nice and sunny, but then RIM’s CEO warned the market that they will be reporting a quarter end loss at their upcoming quarterly report. This news at an unfortunate time for RIM as it is the first time they have had a quarter where the company reported a loss in nine years. They also announced that they have hired JP Morgan and RBC to review their current business situation and look at a possible sale as he outlined in a press release:
To further enhance our commitment to successfully completing our transformation, after the release of our year-end financial results, we engaged J.P. Morgan Securities LLC and RBC Capital Markets to assist the Company and our Board of Directors in reviewing RIM’s business and financial performance. These advisors have been tasked to help us with the strategic review we referenced on our year-end financial results conference call and to evaluate the relative merits and feasibility of various financial strategies, including opportunities to leverage the BlackBerry platform through partnerships, licensing opportunities and strategic business model alternatives.
Although the press release went out at 4 PM EST yesterday, it still sent another wave of doubt to the market and RIM’s stock took another dive of about 10%, RIM quickly adjusted and halted trading of their stocks. As the market opened this morning, RIM’s stock (TSE:RIM) is trading around $10.80. The company has put a lot of faith that they pending new operating system will be the saviour, unfortunately it is not due out until the fall of this year. RIM desperately needs a knight in shining armor right about now.