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December 21, 2012

RIM Reports $9M Q3 Profit, Surprising Analysts

Research in Motion (RIM) reported lower than expected losses and higher than expected profits for its third quarter sending its stock up seven points in after hours trading Dec. 20.

RIM reported a net profit of $9 million, or two cents a share, in the third quarter down from the $265 million net profit, or 51 cents a share, in the same period last year.

The Waterloo, Ont., company, maker of the BlackBerry, said it had an adjusted net loss of 22 cents per share — Wall Street was expecting a 35-cent loss.

Revenue dipped to $2.7 billion, down five percent from $2.9 billion in the previous quarter and down 47 percent from $5.2 billion in the third quarter of the previous year.

The company’s cash increased by $600 million — from $2.3 billion in the second quarter to $2.9 billion in the third.

The company said it has 79 million BlackBerry subscribers, down from 80 million when it reported its second-quarter results in September.

“RIM continued to execute on its product roadmap plans and to deliver on key financial metrics as it gets set for the global launch of BlackBerry 10,” said president and CEO Thorsten Heins. “During the third quarter, we continued to demonstrate our strong financial position, generating $950 million in cash flow from operations and increasing our cash position significantly to more than $2.9 billion.”

RIM launched a technical preview of its next operating system for “enterprise” customers earlier this week in a bid to win over companies and government agencies before the release of the BlackBerry 10 next month.

The “by invitation” program, which began Dec. 17, includes more than 120 select customers spanning a variety of industries such as financial, government, insurance, health care, manufacturing, media, and distribution. Sixty-four Fortune 500 companies are taking part.

The technical preview program will give organizations early access to RIM’s new enterprise mobility management solution, BlackBerry Enterprise Service 10, along with a limited number of pre-production BlackBerry 10 Smartphones for testing within their environment.

“Beginning today, RIM will be visiting some of our enterprise and government ‘early adopters’ and getting them started with the BlackBerry 10 platform,” said chief information officer Robin Bienfait in a statement. “At RIM, we’ve seen the power of our new enterprise mobility management solution first-hand, and we are thrilled to share BlackBerry 10 directly with these leading organizations.”

RIM earlier this fall secured a key U.S. government security clearance, paving the way for the BlackBerry 10 to be the device of choice for the feds.

RIM said its BlackBerry 10 received its U.S. Federal Information Processing Standard (FIPS) certification. Translation: the devices can be used to send classified data between government employees.