Record RIM quarter as BlackBerry shipments top 14.2 million in Q3 2011

Up 40 percent year on year

Record RIM quarter as BlackBerry shipments top 14.2 million in Q3 2011
Research in Motion (TSE:RIM) has announced its Q3 FY2011 results for the three months ending November 27, 2010.

Revenue grew by 40 percent year on year to $5.49 billion, while net income was $911.1 million, up from $628.4 million in the same quarter last year.

Behind such growth was a rise in shipments, with RIM shipping 14.2 million BlackBerry devices across the course of the quarter – a record figure for the firm and a year on year rise of 40 percent.

In the previous quarter, RIM shipped 12.1 million devices.

In total, there are now 55 million active BlackBerry users globally, with RIM adding 5.1 million subscribers during the quarter.

Going global

"We are pleased to report another record quarter with strong growth in shipments of BlackBerry smartphones leading to record revenue, subscriber additions and earnings," said RIM co-CEO Jim Balsillie.

"RIM's business continues to grow and diversify as BlackBerry adoption accelerates in markets around the world.

"With strong results and momentum from our recent product introductions, as well as growing excitement from our partners and customers around upcoming smartphone, tablet, software and service offerings, we are setting the stage for continuing success."

RIM expects revenue in the next quarter to be between $5.5 billion and $5.7 billion.

Eyes on UK

Interestingly, in a conference call detailing the results, Balsillie pointed to the growing importance of the UK to RIM's business, which now accounts for 12 percent of the firm's revenues.

While BlackBerry has traditionally held a strong base in the US, it has recently faced significant pressure from both iPhone and Android.

As such, efforts to push handsets overseas have ramped up, with Balsillie now claiming BlackBerry is the top smartphone platform in several Western European markets, including the UK.

"The prepaid smartphone market in the UK alone grew 245 percent year-over-year versus postpaid at only 65 percent growth, and RIM is taking advantage of these dynamics to leverage our unique position and grow the business to record levels," said Balsillie.

Counting the cash

Revenue breakdown for the quarter was approximately 82 percent for devices, 15 percent for service, and 3 percent for software and other revenue.

In terms of cash, cash equivalents and investments, RIM ended the quarter holding $2.5 billion, up $446 million from the previous quarter.

The company's earning per share also rose 58 percent year on year to $1.74 in Q3.

[source: RIM]

With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.