Research in Motion (TSE:RIM) has announced its Q1 FY2011 results for the three months ending May 29, 2010.

Revenue was $4.24 billion, up 24 percent year-on-year, while net income was $768.9 million, up 20 percent compared to Q1 2009.

Revenue breakdown was split 79 percent on devices, 16 percent on services, 2 percent on software and 3 percent on other revenue.

The gross margin was 45.4 percent, compared to 43.6 percent a year ago.

"We continue to be focused on growing our business globally," said co-CEO Jim Balsillie.

"We believe that the range of exciting new BlackBerry products being released in the coming months will create significant opportunities to accelerate RIM's growth in the second half of the fiscal year."

Still, these figures were at the low end of the company's own predictions and also failed to meet analysts' expectations. They had predicted revenue of $4.35 billion.

In a slow day for technology stock, RIM's share price dropped 1.5 percent on the Toronto Stock Exchange.

Nation of 100 million

Consumer activity remains strong however. During the quarter, RIM shipped around 11.2 million devices, up 43 percent year-on-year. 

Approximately 4.9 million new subscribers were added to its BlackBerry service, with the company ending the quarter having 46 million subscribers.

RIM also shipped its 100 millionth BlackBerry duirng the three month period.

Buyback planned

In terms of cash, cash equivalents and investments, RIM held $3.27 billion at May 29, up from $2.87 billion at the end of its previous quarter.

Cashflow from operations was $1.12 billion, offset by $410 million in stock repurchases and various equipment and plant costs, and $270 million in intangible asset acquisitions. 

The company has also authorised a new share repurchase program to cancel 31 million shares, or around five percent of its outstanding common shares.

[source: RIM]