BlackBerry maker Research In Motion posted a huge loss for its Q1 2013 fiscal quarter.
During the three months that ended on June 2, 2012, the Canadian handset manufacturer reported a $518 million loss on a revenue of $2.8 billion ($0.37 per diluted share), according to a press release published Thursday.
New BlackBerry 10 devices, which the company had hoped to begin releasing in the fall of 2012, will be delayed until early next year.
RIM will also begin cutting 5,000 jobs as part of a restructuring effort aimed at saving $1 billion in operating costs.
Reuters reports that expectations had nowhere near predicted such a steep quarterly loss. "Analysts, on average, expected a loss of 7 cents a share on revenue of $3.07 billion, according to an informal Reuters poll," writes Reuters.
RIM shares plunged $1.66, or 18 percent, to $7.47 in extended trading, after the release of the results. If they hold that level into regular trading Friday, they will set a new nine-year low.
"This was a challenging quarter for the company on many fronts," [CEO Thurston] Heins said on a conference call with analysts. "And I am not satisfied with the financial performance we are reporting today."
The company reported global growth for BlackBerry, with the exception of North America. The much-delayed BlackBerry 10 platform and handsets remain RIM's primary focus (and its biggest hope for a turnaround).
"I will not compromise the product by delivering it before it is ready. I am confident that the first BlackBerry 10 smartphones will provide a ground-breaking next generation smartphone user experience," said Heins, per the company's release.
Xitij Ritesh Patel