RIM predicts loss for current quarter; hints at layoffs

Research in Motion surprised investors today with an early announcement concerning its current fiscal quarter. While the quarter isn't scheduled to end until June 2nd, its CEO Thorsten Heins admitted today in a press release that the company's numbers will "likely result in an operating loss for the quarter."

Reins said that the loss was due to the "on-going competitive environment" along with "highly competitive pricing dynamics in the marketplace." This weekend, rumors hit the web that RIM could announce layoffs that could affect 2,000 team members. Heins did state in the press release that RIM plans to make "...significant spending reductions and headcount reductions in some areas throughout the remainder of the fiscal year." Specific numbers were not mentioned.

RIM will receive assistance from JP Morgan Securities and RBC Capital Markets in reviewing the company's business and financial performance, according to Heins. JP Morgan and RBC will take a look at what RIM could do in terms of using its Blackberry OS "through partnerships, licensing opportunities and strategic business model alternatives."

At the same time, Heins said that the company was encouraged by the response software developers gave both the Blackberry 10 OS and its prototype phone, which were officially revealed earlier in May. Blackberry 10 is still scheduled to launch sometime in the latter half of 2012.

Heins concluded the press release by saying, "Although we are facing challenges, we remain excited about BlackBerry 10 and believe that this platform coupled with the results of the strategic review will create long-term value for our stakeholders."

Source: Research in Motion press release

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