Post says RIM starting to win over skeptical analy
2012-12-21 09:08 ET - In the News
The Financial Post reports in its Friday edition that despite its shrinking BlackBerry user base, Research in Motion was able to increase its cash position by roughly $600-million to $2.9-billion as the company prepares a war chest to help with the launch of two new BlackBerry handsets (all figures U.S.). The Post's Matt Hartley and Christine Dobby quote Peter Misek, an equity analyst with Jefferies & Co. as saying: "All the things I cared about were either in line to better-than-expected. Margins and cash were much better than expected, and subscribers were in line with what I expected." Mr. Misek said he was impressed with RIM's increased cash position. "It puts them in a position to make BB-10 succeed," he said. "They've got enough cash, they've got enough people … now it's about execution." Indeed, many analysts are now looking ahead to RIM's BB-10 roll out and the company's ensuing strategy. "I want to see how you go from just surviving and squeezing your balance sheet and keeping cash to becoming a profitable company," said Colin Gillis at BGC Partners in New York. RIM said revenue for the third quarter was $2.73-billion, which was down 47% from $5.2-billion in the same quarter last year.