RIM sales solid ahead of iPhone threat

Apple may be launching its iPhone handset today in the US to much public enthusiasm, but BlackBerry-maker

Research in Motion (RIM) has shown a strong hold on the market as it reported a quarterly jump in revenues, earnings and new subscriptions.

RIM also announced a three-for-one stock split today, which will see shareholders receive two additional shares for each one held on 20 August.

RIM's quarterly revenues to 2 June jumped 16.3 per cent on last quarter to $1.082 billion (£541 million), while it increased subscriptions by 1.2 million to a total of nine million.

GAAP net income for the quarter was $223.2 million, on earnings of $1.17 per share, up from $187.4 million or $0.98 per share the previous quarter.

"We are starting fiscal 2008 with strong operating performance, including record revenue, earnings and subscriber results," said Jim Balsillie, co-chief executive at RIM.

During the quarter, RIM shipped 2.4 million devices. The firm said it expects to ship its 20 millionth BlackBerry handset this summer.

About three-quarters of the revenue was from devices, while 16 per cent was derived from services, five per cent from software and three per cent from other sources.

"This growth is a testament to our strong portfolio of products and services and our successful channel expansion" said Balsillie. "We look forward to the remainder of the year in which we anticipate continued growth within both North American and international markets."

RIM forecast about $1.3 billion in revenue and 1.3 million new subscriptions for the second quarter ending 1 September, as well as earnings in the range of $1.37-$1.49 diluted, or 45 to 49 cents following the stock split.

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