Research in Motion‘s shares looked to be under serious pressure before trading opened Friday morning following disappointing quarterly results.
RIM stock took a beating in premarket trading on the Nasdaq, falling 20% or US$5.74 to $23.80 after the BlackBerry maker reported lower second-quarter profits and revenues and failed to meet analyst expectations.
RIM’s revenues fell 15% to just under US$4.2 billion from $4.6 billion while profits dropped 58% to $329 million from $797 million a year earlier.
In its financial report, the company booked a charge of $118 million to pay the cost of cutting 2,000 jobs, about 11% of its workforce. The company also sold far fewer BlackBerry smartphones and computer tablets than it expected and several analysts expressed doubts that RIM can meet its future revenue expectations.
A tumble on the TSX would come after three straight days of gains.
