Asahi Associates: Struggling smartphone manufacturer Research In Motion reported lower than expected losses and improved cash reserves.
The maker of the Blackberry smartphones, Research In Motion, sparked market optimism by shipping more units and generating more revenue than expected. It really has impressed the market, said one analyst working closely with Asahi Associates. RIM's share price jumped by 20 percent on the news.
RIM, which once dominated the smartphone market but now lags far behind its main rivals Apple and Samsung, will be launching its latest range of devices, with the completely redesigned operating system Blackberry 10, in early 2013. The importance of the new line is huge to RIM's long term success, with many considering it a make or break product.
I didn't have much confidence that they could hit the sort of unit sales that they have, given the competition, but they have been well served in the emerging markets, said the Asahi Associates analyst.
One time restructuring efforts also saw RIM boost its cash reserves, by cutting costs, drawing down inventories and collecting on cash that was owed to them.
Seen by many as the creator of the smartphone market, RIM has fallen well behind its main rivals and has seen its market share collapse and its share price drop by 70 percent over the past year.
Despite the confident results one thing has not changed, which is that RIM's future is tied up with the success of Blackberry 10. Thorsten Heins, Chief Executive Officer, allegedly commented to Asahi Associates that RIM executives have been in meetings with numerous carriers in dozens of countries over the last couple of months and they have been met with overwhelming positivity with regard to the new devices.