Blackberry Maker Surprisingly Posts Profit

April 3rd, 2009 at 12:00 am
 


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In a time when most companies have been hard hit by the current global economic recession, many continue to beat expectations. While many experts have put a gloomy outlook for companies putting up a profit this year, there seems to be a bit of space left for some surprises to come out here and there. Consider the news that Research In Motion (RIM) recently announced.

The maker of the popular Blackberry smart phones recently reported to the public that it has posted US$3.46 billion in revenue for the fourth quarter of the fiscal year 2009. This figure was actually up from the US$2.78 billion that the company posted during the previous quarter, a difference of about 24.5 percent. The recent fourth quarter revenue posted was even higher than the US$1.88 billion posted by RIM on the same quarter last year. That is an incredible 84 percent difference. The increase in revenue comes as a surprise, considering that the world is under serious economic downturn right now.

The 2009 fourth quarter revenue breakdown is like this- 83 percent came from device sales, 12 percent from service, 2 percent from software and 3 percent from other sources of revenue. For the fiscal year 2009, which ended on February 28 of this year, RIM was able to ship around 26 million devices, with about 7.8 million of them happening during the fourth quarter. Net income for the upbeat 2009 fourth quarter was US$518.3 million, compared to the US$412.5 million made on the same quarter last year.

Overall net income of the company for the 2009 fiscal year stands at US$1.89 billion, up 46.3 percent over net income from fiscal year 2008. The surprising yet welcome numbers from RIM have been spurred by the launch of the Blackberry Storm, which was said to be the strong driver of sales and subscriber growth in the fourth quarter of 2009. A good part of this also comes from the growing sales of the device in the Latin American market such as Brazil, Chile and Valenzuela.

The Blackberry Storm is RIM’s first touch screen smart phone, going head to head with the Apple iPhone. RIM also recently announced the opening its own Blackberry App World application store, to keep the competition tight with Apple’s iPhone App Store.