Issue #2003 - 20 (June 2003)
OUTLOOK & TRENDS
Financial News From Wireless Companies
1. Court costs drive RIM losses
Research in Motion (RIM) reported revenue of $104.5 million in its fiscal first quarter ended May 31, compared with $71.6 million in the same quarter a year ago. The company lost $8.2 million, or 11 cents per share, in the quarter, down from a loss of $10.7 million, or 14 cents per share, in the year-ago period. Excluding court costs, RIM's loss for the quarter was $0.7 million, or 1 cent per share. RIM is currently
involved in a series of legal suits with NTP and email handheld rival Good Technology.
2. Palm beats analysts' Q2 expectations with $15M loss
Palm reported a loss of $15 million, or 51 cents per share, for the quarter that ended on May 31. The company reported a loss of $27.5 million a year earlier. Palm beat analysts predictions of a loss of 93 cents per share. Palm reported revenues of $225.8 million for the quarter, significantly higher than the $187.7 million analysts had predicted. Palm recently acquired smart phone maker Handspring. The company plans to complete the spin off its OS division, PalmSource, by the end of the summer. Palm will likely change its name when it completes the merger with Handspring.
MobileInfo Comments and Advisory: Device
market vendors still face a very uncertain financial future.
Investors should be careful, unless vendor has recurring service
revenue stream. RIM does - Palm does not to any significant degree.
Note: This news release may contain
forward-looking statements within the meaning of section 27A of the
Securities Act of 1933 and section 21E of Securities Exchange act of
1934 in USA. Similar provisions exist in other countries. There is no
assurance that the stipulated plans of vendors will be implemented.
MobileInfo does not warrant the authenticity of the information.
Readers should take appropriate caution in developing plans utilizing
these products, services and technology architectures. All
trademarks used in this summary are the property of their respective