RIMM – A Company on Life Support With No Hope

Well, as I have previously posted as long as two years ago, RIMM is a dying company.

They posted the Q1 results today and in the first time in eight years, they have suffered a significant loss – $518M!  The highlights:

  • Revenue dropped 43% to $2.8B
  • Excluding impairment charges, a loss of $0.37 per share – analysts were expecting $0.03 per share loss
  • Blackberry shipments dropped 41 percent

The biggest and most telling issue though was the announcement that they will be cutting a further 5,000 employees and that the new BB10 based devices are further delayed to 1Q 2013.  This is the signal to finally take the company off life support and just let Canada mourn over yet another ‘made in Canada’ solution that could not make it in the end.

On that note, I would like to thank Jim Balsille and Mike Lazaridis for being so focused on ensuring RIM had a clear strategy and executed with conviction…. oh wait, Balsille was busy trying to buy a hockey team and Lazaridis was more keen on resting on his laurels than creating the future.

About Grant Fengstad

I’m a technology professional in the travel and transportation sector and have been very involved with the Internet for over 20 years.