RIM (Research in Motion) has posted its first quarter results and the results are not pretty. The company has seen massive losses, with a 33% loss of revenue – dropping from $4.2 billion in the previous quarter to $2.8 in Q1 this year.
Shipments of devices have also plummeted, from 11.1 million down to 7.8 million, with a little more than half the number of Playbooks being shipped compared to the last quarter.
Added to this is the announcement yesterday that the BlackBerry maker is cutting 5,000 jobs and will be delaying BlackBerry 10 till next year. The company needs the updated OS or it faces being stuck with BlackBerry 7 for the remainder of the year, which won’t assist flagging sales. The company has said that “…the integration of these [BlackBerry 10] features and the associated large volume of code into the platform has proven to be more time consuming than anticipated.”
RIM CEO Thorsten Heins said, “Our first quarter results reflect the market challenges I have outlined since my appointment as CEO at the end of January. I am not satisfied with these results and continue to work aggressively with all areas of the organization and the Board to implement meaningful changes to address the challenges, including a thoughtful realignment of resources and honing focus within the Company on areas that have the greatest opportunities.”
Unfortunately, the way that things look for the company at the moment, RIM may not be able to stop its downward spiral into the depths of the toilet.