TheStreet.com RealMoney
RIMM Delivers a Bold Forecast

By Bob Faulkner

About this article:
For Faulkner's preview heading into the Research In Motion conference call, please click here. Research In Motion reported third-quarter results that were essentially in line with the company's pre-announcement, and guidance for the fourth quarter turned out substantially better then expected. Revenue in the quarter was $2.78 billion (up 66% year over year and 8% quarter over quarter), with GAAP EPS of 69 cents (pro forma = 83 cents). The gross margin, as expected, was 45.6%, down more than 500 basis points year over year and sequentially. This was due to the stronger-than-expected demand for the company's new products. The operating margin was 23.0%, also down due to the lower gross margin. Unlike past quarters, however, operating expenses grew only 3% sequentially, well below the rate of revenue growth. The company experienced a tax anomaly in the period, pushing the rate up to 41%. This was partially...

You have just read the beginning of a premium article from our RealMoney Service. To read the rest of this article and sign up for a FREE trial please click below.

ACCESS STORY & START A FREE 14-Day Trial
Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET.
Outside the U.S. and in Canada, call 1-212-321-5200.



Already a RealMoney subscriber? LOG IN.
Username:   Password:
Forgot your Password? Click here

Page data is submitted securely.




If you choose a 14-day free trial of RealMoney and you do NOT call to cancel within those 14 days, you will pay $129.95 — a $100 savings off the regular annual subscription price of $229.95. Unless you cancel before the end of that year, your subscription will automatically renew for another year at the then-current subscription price.

Offer applies only to new annual subscriptions, and is subject to change at any time. Void where prohibited.

If you choose a monthly subscription, you pay $34.95 per month. You will be notified if the current monthly rate of $34.95 changes at any time in the future.

TheStreet.com is a publisher. None of the contributors or their affiliates will provide you with personally tailored advice concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. From time to time, any or all of the contributors or their affiliates may hold positions in securities mentioned and they may trade for their own accounts. In cases where the position is held at the time of publication, appropriate disclosure is made.

© TheStreet.com, Inc., 14 Wall Street, 15th Floor, New York, NY 10005.