RIM reported disappointing Q2 results and weak Q3 guidance, missing consensus revenue estimates for both periods.

RIM's Q2 earnings were impacted by a special charge related to settling patent litigation with Visto; otherwise, they were slightly above expectations.

This after many analysts expressed heightened expectations for both periods. Shares are down 12% after hours.

On the company's earnings call, co-CEO Jim Balsillie repeatedly expressed his pleasure with RIM's results, and referred several times to an exciting new "services" platform that the company will be rolling out. But no details.

One interesting fact: 80% of RIM's new subscribers last quarter were non-enterprise, meaning that RIM will be increasingly going head-to-head with consumer-focused smartphone makers like Apple. (It's more insulated in the enterprise business, where it is easily on top.)

Gross margins picked up a hair from the May period to 44.1%, but were still down significantly year-over-year, and RIM predicts they will fall to 43% next quarter.

Key Stats:

• Q2 Revenue: $3.53 billion vs. $3.62 billion consensus, $3.7 billion (RBC)
• Q2 EPS: $0.83 ($1.03 not including one-time charge) vs. $1.00 consensus, $1.03 (RBC)
• Q2 Subscribers: 3.8 million net additions vs. 4.1 million net additions (RBC)
• Q3 Revenue: $3.73 billion vs. $3.92 billion consensus, $4.0-4.1 billion (RBC)
• Q3 EPS: $1.04 vs. $1.05 consensus, $1.06-1.08 (RBC)
• Q3 Subscribers: 4.15 million net additions vs. 4.3 million net additions (RBC)

 

[businessinsider]