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RIM Signals Margin Squeeze Ending

Arik Hesseldahl Business Week 04/02/2009 15:23
RIM Signals Margin Squeeze Ending - RIM


Research In Motion's stock soared on the news that profit margin pressure is expected to ease, despite competition from Apple



Research In Motion's margin squeeze may be coming to an end. A report released Apr. 2 indicated that profitability will be on the rise in the coming months for the maker of the BlackBerry smartphone.

Reporting fiscal fourth-quarter results, RIM (RIMM) said it earned $518 million, or 90¢ a share, as sales surged 84% to $3.46 billion. Wall Street analysts on average had expected earnings of 84¢ a share on $3.4 billion in revenue. The company also forecast sales and profit in the current quarter that exceeded analysts' expectations.


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