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RIM BlackBerry Revenue Remains Solid, Despite Competition

6:30 am on July 3, 2006 | Category: Business, Email, Mobile Devices

Wireless email device maker, Research In Motion Ltd., announced last week that it generated $129.8 million in profit in the quarter that ended on June 3, adding a total of 680,000 net users.

Earnings results were roughly comparable to the first quarter of 2005, when the company made a net income of $132.5 million. Revenue, meanwhile, increased significantly to $613.1 million, compared to $453.9 million in the same period last year.

71% of RIMâ€™s revenue came from selling new BlackBerry devices to new and existing users. A total of 1.2 million of the email-enabled handhelds were shipped in the first quarter. The company expects to generate between $620 million and $650 million in the current quarter, which wraps up on September 3.

The fact that RIM seems able to maintain these impressive profits, despite increasing competition from companies like Palm and Motorola, is an encouraging sign for investors, sending the Ontario-based companyâ€™s stock up nearly 4% in after-hours trading.

“RIM delivered a solid quarter with strong revenue, earnings and subscriber results,” said the companyâ€™s Chairman and Co-CEO, Jim Balsillie, in a statement. “BlackBerryâ€™s ongoing competitive dominance is driving strong growth in existing markets and fueling substantial international expansion.”

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