Patent Payoff Sours BlackBerry Earnings
{{#rendered}} {{/rendered}}The maker of BlackBerry saw its shares plunge by more than 10% after reporting a fall in income and saying it would not be able to meet Wall Street's revenue forecasts. Canadian firm Research In Motion's second-quarter profit dropped to $463 million, down 4% on the same period a year earlier.
The decline was put down to charges for a patent settlement payment to mobile e-mail provider Visto, which claimed RIM was using its technology without a licence.
RIM revenue rose 37% but was still shy of the figure analysts had expected.
{{#rendered}} {{/rendered}}The company said it added only 3.8 million new subscribers during the period—the low end of its forecast - while revenues also came in shy of expectations despite jumping 37%.
Meanwhile revenue for the current quarter is seen coming in below the $3.8 billion tipped by analysts.
Click here to read more about Research in Motion at Sky News.