Research in Motion freeze share trade at Nasdaq for fifteen minutes

Wednesday, May 30th, 2012 6:05:58 by

The company is expecting operating losses in the first fiscal quarter, says CEO Thorsten Heins

The beleaguering smartphone manufacturer, Research in Motion, froze the trade of its shares at Nasdaq on Tuesday. The trading however, started again after a fifteen minute interval.

In a statement CEO Thorsten Heins released to explain the action taken, he said that the company is expecting an operating loss in the first fiscal quarter that ends on Thursday.

On their part, RIM did the wise thing to freeze the trade because the news would have brought drastic effects on the share price and the damage would have been irreversible. RIM’s shares, trading under RIMM at Nasdaq, are already on the downward slide.

Over the last 12 months, the company has lost 80 percent of its stock market value. The price plummeted 10 percent in the afterhours on Tuesday from $11 per share price that was recorded at 2 PM in New York City.

The company is incurring losses on continuous basis and the situation is not expected to improve any time soon. The manufacturer of Blackberry has been losing its smartphone market share against iOS and Android phones. Though it holds third position in the roster of mobile phone manufacturers, it is treading a thin line.

At the moment, RIM has only $2.1 Billion in cash and is consistently recording losses on every front. It is expected that the Canadian company will undergo another major layoff round. To date RIM has relieved a number of employees of their position to balance the costs.

It is a makedo strategy that RIM is following at the moment. It announced in 2011 that the new Blackberry 10 operating system is in the making and will be released in the second half of calendar 2012. However, the market might not have that much time to wait for the new OS to come out the door.

Blackberry smartphones are losing market share on an exponential rate. The most important factor in this regard is the scarcity of application developers or its lack thereof.

What RIM should do is launch the new operating system at the earliest with new handsets. Many experts tout that the company may not even survive until October, the alleged month of BB10 release.

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7 Comments for “Research in Motion freeze share trade at Nasdaq for fifteen minutes”

  1. Ray

    What have you been smoking?

  2. James Brown

    RIM has enough cash on hand to switch from making cellphones to donuts. Yes … donuts. RIM has hired Barbara Stymiest (Weston Foods) who has the expertise to rewrite and implement RIM’s new mission statement which will include making donuts. The success by Tim Hortons (THI) in the donut industry has shown that if RIM begins making donuts, the company along with the stock might recover prior to the end of Q-4.

  3. PF

    re: What RIM should do is to launch the new operating system at the earliest with new handsets

    Gee…that’s insightful, I’m sure no one at RIMM thought of that…

    re: losing its smartphone market share against iOS and Android phones

    They actually managed to increase the number of users during this tranistion time remarkebly fyi, the media like the glass half empty approach to this one.

    Of course they’re in a downward slide, they’re fazing out their OS for an entirely new one. They’re about to go from the oldest OS to the newest OS on the market, the slide should continue for at least another 6 months, then users and developers will decide whether the new OS is worth pursuing, their future will be decided then, not now.

  4. There done its obvious…keep shorting them.

    They will join Kodak soon!!!

    RIMM can’t give away there phones… No one wants them they suck!

  5. Fact Checker

    Unfortunately none of the “facts” presented are remotely correct.

    -> RIM is increasing its installed user base consistently, quarter over quarter
    -> RIM has reported only on-paper losses due to inventory markdown; they remain profitable (this just takes 2 seconds to check the last quarterly…)
    -> “Many experts tout that the company may not even survive until October, the alleged month of BB10 release” <- name one expert that's said this. Just one.

  6. Mike

    Your article is pure sensationalism. Yes RIM isn’t making the direct profit they’d like to but this is to be expected during a transition from one platform to another.

    RIM is still doing really well in many international markets and in the services they provide Telcos, Enterprise and IT departments to secure and manage all devices whether BlackBerry, Android or iPhone.

    The hardware specs and OS possibilities for BlackBerry 10 are great. Like many 1,000’s of people I’m very excited about BlackBerry 10 and plan to get one the second they are available.

    Please ensure you are reporting only facts… or if and when you post your opinion – specify that it is your opinion.

  7. operator dude

    The reason we operators like RIM is because it’s more efficient for the networks … as more operators buy gear from companies like Edgewater Systems that seamlessly shifts *data* usage to wifi backhaul then it’s less costly to have

    Right now RIM blows iOS and Android out of the water for operational returns on network usage … iPhones/Androids are sexy so help in gaining customers for the future (when it will be more profitable to have them on the network from an operational point of view). RIM’s last advantage will then disappear. But by that time all of the player’s end user equipment is going to be commoditized RIM will have a new OS and it’s a new game. Now if RIM *bought* a company like edgewater and started making money on equipment designed to make its competitors more network friendly for operators that would be interesting. Remember RIM has a lot of cash and might do something surprising 🙂

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