RIM management staying positive

Research in Motion has once again reported less than expected second quarter earnings.

But even as RIM’s shares plummeted in after hours trading last night, the overall attitude of the management, is positive. Co-CEO Jim Balsillie says demand for Blackberry Smartphones was strong across all regions.

“In North America Blackberry Seven Smartphones are having an excellent reception and have driven a meaningful increase in sales through the region during the last few weeks of the quarter and so far in September. In the last week of Q2 Blackberry Seven smartphones accounted for approximately thirty five percent of our overall sell through in North America.”

Balsillie adds that outside of North America, sales increased by almost 50 percent in the first few weeks of Q3 driven by the launch of the new Bold 99-hundred.

He also says the successful launch of the Blackberry Seven smartphones is a critical part of the transition plan.

“The launches are going extremely well and we have only started to see the results of this success reflected in the business. Blackberry Seven has a lot of runway that we believe can carry us through the transition to QNX based smartphones.”

The second quarter revenue was approximately $4.2 billion, which was below the expected $4.6 billion. But Balsillie says that service revenue surpassed $1 billion for the first time in RIM’s history, which reflects over forty percent growth in RIM’s subscriber base, and with the success of Blackberry Seven and the technical performance of the upcoming Q-N-X platform, RIM is the strongest it’s ever been.

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