[[email protected]]

RIM begins laying off high-level staff: source
IAIN MARLOW
Globe and Mail Update
Published Thursday, Mar. 29, 2012 3:53PM EDT
Last updated Thursday, Mar. 29, 2012 4:06PM EDT

Research In Motion Ltd.�s (RIM-T13.690.030.22%) new CEO Thorsten Heins has begun getting rid of high-level staff at the troubled smartphone giant, according to a source close to the company.

Ahead of RIM reporting fourth-quarter and year-end financial results on Thursday after markets close, a source with knowledge of Mr. Heins� actions said RIM executives at the senior vice-president and vice-president levels had been told they no longer had jobs on Thursday.

�Lots of high level people within RIM were let go today,� this person said. �Quite a few. Big shake up.�

Sales and marketing staff, which were targeted for layoffs in the summer, have been targeted yet again, according to this person.

Few have expected RIM�s results to be good. The only question analysts had were how bad the results would be and what changes Mr. Heins was beginning to implement at the smartphone maker, which has lost market share to Apple Inc. and Google Inc.�s Android platform.

RIM said when it announced its third-quarter earnings that it expected to see fourth-quarter revenues of between $4.6-billion and $4.9-billion, earnings per share of between $0.80 and $0.95, and a gross margin of approximately 38 per cent.

The Waterloo, Ont.-based technology company also said it expected to ship between 11 million and 12 million smartphones.

Bay Street and Wall Street analysts in recent weeks have been universally bearish on the company, with many forecasting that RIM would miss its earnings guidance and announce that BlackBerry sales were slowing.

Several analysts have also raised other issues, either through an analysis of long-term trends or through channel checks. Some have pointed out that the strong overseas growth that has carried RIM through recent quarters may be slowing, and that demand seems to be slowing for RIM�s current crop of �aging� BlackBerry 7 smartphones, such as its flagship touch screen BlackBerry Bold 9900.

�The company is on a declining trajectory and there is little reason to think this is going to change with the current strategy,� wrote BGC Financial L.P. technology analyst Colin Gillis in a note to clients this week. �Our take is that customers view the brand as yesterday�s phone, and (mobile application) developers are not building for the platform.�

RIM begins laying off high-level staff: source - The Globe and Mail

[app_Developer]

Financial issue aside, I think RIM's marketing and sales staff are long overdue for a shakeup. Good move.

[johnenglish]

Trading halted pending news.

[texile]

Another media conspiracy. Why do they only write negative articles?

[undone]

Not a bad thing to restructure once you have a grip on all the ins and outs. Market will see it as a positive move vs the past 'head in the sand' approach.

[johnenglish]

Laying off all senior executives usually isn't seen as something good.

Announcing a specific restructuring, or laying off people in a troubled division, or laying off people combined with an announcement of your restructuring plans is one thing. Just laying off all your VPs is something else.

[app_Developer]

Laying off all senior executives usually isn't seen as something good.

Not all. Some. Well, this story says "lots", whatever that means. I'm happy see Heins do anything to fix this company. They obviously need better senior staff.

[[email protected]]

Another media conspiracy. Why do they only write negative articles?

I don't think this is negative at all.

[UrbanGlowCam]

Laying off all senior executives usually isn't seen as something good.

I agree. But it might be good for long term as many investors were upset when Thor came off as the type who believed a big change wasn't necessary. This would please those individuals.

RIMM is up nearly 3% in after hour trading. Though it's a bit premature as we haven't heard anything official yet. We'll see in about 15 minutes.

[app_Developer]

ooh, Balsillie has resigned from the board! That's very interesting.

(81 cents is the EPS, btw, as expected, but they did miss on revenue).

They sold 500,000 playbooks. That's about what most people expected, right?

[sam_b77]

Sales and Marketing were asleep at the wheel for way to long. They should have evolved a strategy to move away from carrier point of sales to direct distributership sale models.

Those models have done wonders in countries like India, Indonesia, etc. Carriers sell what's hot and easy to sell. Distributors sell aggressively and make a market.

Good shake up as long as there is a new team with a solid vision for US marketing.

[Laura Knotek]

ooh, Balsillie has resigned from the board! That's very interesting.

That's definitely a positive!

[johnenglish]

4th quarter results just hit the wire.

Research In Motion Reports Year-End and Fourth Quarter Results for Fiscal 2012

Highlights:

•$2.1 billion in cash, cash equivalents, short-term and long-term investments at the end of the quarter, which increased by approximately $610 million in the quarter
•Cash flow from operations of approximately $1.1 billion, up from approximately $900 million in Q3
•Revenue of $4.2 billion, down 19% from the third quarter
•GAAP net loss in Q4 of $125 million or $0.24 per share diluted; adjusted net income of $418 million or $0.80 per share diluted
•BlackBerry smartphone shipments of 11.1 million in Q4, down 21% from Q3
•RIM to discontinue providing specific quantitative guidance
•RIM provides update on organizational changes

[app_Developer]

That's definitely a positive!

yes, I would say that's a big positive. I'm not kidding at all.

[app_Developer]

�RIM to discontinue providing specific quantitative guidance

Oh, you've got to be kidding. Seriously??

[Economist101]

�RIM to discontinue providing specific quantitative guidance

As opposed to what? Qualitative guidance? Yikes.

[howarmat]

interesting read so far. I agree 500K PB sounds about right thru the holidays and all full discount.

The "no longer providing guidance" is kinda horrible.

Revenue is considerable down too.

[johnenglish]

Oh, you've got to be kidding. Seriously??

The "no longer providing guidance" is kinda horrible.

In other words, things are going to get worse before they get better.


edit - RIM said that there will be "significant challenges" over the next several quarters.

[UrbanGlowCam]

interesting read so far. I agree 500K PB sounds about right thru the holidays and all full discount.

The "no longer providing guidance" is kinda horrible.

Revenue is considerable down too.

Yeah. Sounds like a mix of good/bad news. 500k PlayBooks just last quarter right? If so, that's really good. Obviously, they didn't profit as much from them with the price drops.

But it is a good long term strategy to lock users/developers in and build their ecosystem.

[sam_b77]

As opposed to what? Qualitative guidance? Yikes.

I don't get this. Would you explain this. Is it good or bad? Cash up by 2.2 billion dollars but sales down by 19%.
And quantitave guidance to be stopped. I'm not able to get what it means (maybe because of too much Bacardi with coke on a weeknight) and I'd rather have you explain this as I respect your views on these matters.
Edit: RIMM is up on after hours trading.

[app_Developer]

I don't get this. Would you explain this. Is it good or bad? Cash up by 2.2 billion dollars but sales down by 19%.
And quantitave guidance to be stopped. I'm not able to get what it means (maybe because of too much Bacardi with coke on a weeknight) and I'd rather have you explain this as I respect your views on these matters.

RIM's explanation for this:

"The company expects continued pressure on revenue and earnings throughout fiscal 2013. Due to a desire to focus on long term value creation and the current business environment, RIM will no longer provide specific quantitative guidance. Some of the factors contributing to this include, ongoing weakness in the Company's U.S. smartphone business, an increased focus on selling BlackBerry 7 smartphones to grow the subscriber base in advance of the BlackBerry 10 launch, increasing competitive pressure in the Company's international markets and the introduction of certain new lower tier service pricing initiatives and a higher mix of sales coming from entry level products."

In other words, they are going to discount the daylights out of the BB7 phones this year.

[app_Developer]

David Yach is out also. I think that's a good move. They have not been very good at all at software, and I'm glad to see that there is accountability there.

[[email protected]]

In other words, they are going to discount the daylights out of the BB7 phones this year.

I called this one.

[sam_b77]

How can they not provide quantitative analysis?? What do the shareholders have to go on then?

Shareholders are in for short to medium term profit not for long term startegic investments. RIM might as well suspend trading till 2013. This makes no sense even to a BB fan. RIM is a publicly traded company. They are answerable to the stock market. If they believe in their long term strategy as opposed to the market then they should now announce a share buyback at a premium to the market and take the company private but not giving quant guidance is a bad move. It might drive the stock to a penny stock and make it a takeover target.

[howarmat]

^^who says they are not going to do that sam. It might be something they are going to do shortly