RIM explores options as business eroded by rivals
Source: Agencies |
May 31, 2012, Thursday
|
Print Edition
Print Edition
BLACKBERRY-MAKER Research in Motion has hired a team of bankers to help it weigh its options as its business erodes in the face of an exodus to the iPhone and Android smartphones.
RIM issued a dire warning about its business on Tuesday, saying it is losing money for the second consecutive quarter and will have to lay off a "significant" number of employees.
The company based in Waterloo, Ontario said it has hired JPMorgan and RBC Capital Markets to help it evaluate its options. Those including partnering with other companies, licensing software and overhauling its business, it said.
The statement from RIM did not detail the coming layoffs, other than to say it expects "significant spending reductions and headcount reductions in some areas throughout the remainder of the year."
RIM made no mention of selling the company. But new Chief Executive Thorsten Heins did not rule that out after RIM's last earnings report in late March.
Colin Gillis, an analyst with BGC Financial, said the company is in a downward slide that's not slowing. He said he doesn't see any buyers for RIM coming forward soon.
"Unfortunately, it falls into the too little, too late category," Gillis said.
RIM issued a dire warning about its business on Tuesday, saying it is losing money for the second consecutive quarter and will have to lay off a "significant" number of employees.
The company based in Waterloo, Ontario said it has hired JPMorgan and RBC Capital Markets to help it evaluate its options. Those including partnering with other companies, licensing software and overhauling its business, it said.
The statement from RIM did not detail the coming layoffs, other than to say it expects "significant spending reductions and headcount reductions in some areas throughout the remainder of the year."
RIM made no mention of selling the company. But new Chief Executive Thorsten Heins did not rule that out after RIM's last earnings report in late March.
Colin Gillis, an analyst with BGC Financial, said the company is in a downward slide that's not slowing. He said he doesn't see any buyers for RIM coming forward soon.
"Unfortunately, it falls into the too little, too late category," Gillis said.
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