Research in Motion (TSE:RIM) has announced its Q1 FY2012 results for the three months ending May 28, 2011.

Revenue was $4.9 billion, up 16 percent year-on-year, while net income was $695 million – a fall from the $768.9 million posted in the same quarter the previous year.

Revenue breakdown was split 78 percent on devices, 20 percent on services, 2 percent on software and 3 percent on other revenue.

The gross margin was 44 percent, down from 45.4 percent a year ago.

"Fiscal 2012 has gotten off to a challenging start," said co-CEO Jim Balsillie.

"The slowdown we saw in the first quarter is continuing into Q2, and delays in new product introductions into the very late part of August is leading to a lower than expected outlook in the second quarter."

Rich RIM reserves

Though representing a rise year-on-year, RIM's revenues still came in below analyst expectations.

Device sales have also slowed, coming in at 13.2 million units – down from the 14.5 million to 13.5 million range the firm gave guidance of back in April.

As a result, the company has announced it is to "begin a program to streamline operations across the organisation, which will include a headcount reduction".

Yet Balsillie is keen to give the results a positive edge, pointing to the cash reserves RIM can draw on to strengthen its position in the coming quarters.

"RIM's business is profitable and remains solid overall with growing market share in numerous markets around the world and a strong balance sheet with almost $3 billion in cash," he added.

"We believe that with the new products scheduled for launch in the next few months and realigning our cost structure, RIM will see strong profit growth in the latter part of fiscal 2012."

Aside from such reserves, which officially sits at $2.9 billion (up from $2.7 billion in the previous quarter), cash flow from operations in Q1 was approximately $1 billion.

Uses of cash included intangible asset additions of approximately $560 million, capital expenditures of approximately $220 million and business acquisitions of approximately $30 million.

RIM's board of directors has also approved a share repurchase program to cancel up to 5 percent of the company's outstanding common shares.

[source: RIM (PDF)]