Research in Motion is lost in transition.
The BlackBerry maker said yesterday it hired investment banks JPMorgan and RBC to review its “options,” which most investors took to mean a potential sale, and warned of another quarterly loss.
The announcement also cast serious doubt on the company’s yet-to-be released next-generation smartphones.
Shares of RIM, which rose 2 percent to close at $11.23 in regular trading, were halted in after hours. The shares tumbled as much as 12 percent when trading resumed, marking the first time the stock has dipped below $10 in nearly a decade.
“RIM is going through a significant transformation as we move towards the BlackBerry 10 launch,” the company said in a statement. “And our financial performance will continue to be challenging for the next few quarters.”
Rivals Apple and Google are selling millions of smartphones, while RIM can’t move its products. There’s more than $1 billion in BlackBerry phones and tablets sitting unsold, the company said, likely leading to another quarterly write-off.
“It’s such a dying platform,” said analyst Colin Gillis. “It’s just a downward slide. There’s not even a product out to transition to.”
It’s been a series of disappointing product launches at RIM, including the failed BlackBerry 7 phones and PlayBook tablets. The BlackBerry 10 phones, which are based on the same QNX software that powers the company’s PlayBooks, aren’t expected until the holiday season.
In the meantime, RBC and JPMorgan bankers will look for any value to wring out of the company. RIM’s most valuable asset at this point is its patents, analysts said. One analyst told Reuters yesterday that at $10 a share, RIM’s $6 billion market cap is about the value of its patent portfolio.
gsloane@nypost.com
RIM, JPMorgan, BlackBerry
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