BlackBerry posts 40 percent growth to beat forecasts

TORONTO - Beating forecasts, BlackBerry maker Research In Motion (RIM) posted its sixth straight quarter of record smart phone sales in its third-quarter results of fiscal 2011 announced Thursday.

The Canadian wireless giant reported a record revenue of $5.5 billion during the quarter, raking in a profit of $911.1 million or $1.74 per share.

RIM also shipped a record 14.2 million devices and added 5.1 million new subscribers during the quarter.

With today’s quarterly results, the BlackBerry subscriber base globally stands at over 55 million.

Both the revenue and shipment during the quarter jumped 40 percent over the same quarter last year.

Sales of BlackBerry smart phones accounted for 82 percent of RIM’s revenue whereas service and software accounted for 15 percent and 3 percent.

“We are pleased to report another record quarter with strong growth in shipments of BlackBerry smart phones leading to record revenue, subscriber additions and earnings. RIM’s business continues to grow and diversify as BlackBerry adoption accelerates in markets around the world,” said RIM co-CEO Jim Balsillie.

“With strong results and momentum from our recent product introductions, as well as growing excitement from our partners and customers around upcoming smartphone, tablet, software and service offerings, we are setting the stage for continuing success,” he added.

Despite skepticism voiced by technology analysts amid onslaught by iPhone and Google Android devices on the BlackBerry, RIM sales rose on the new Torch 9800 which initially received less-than-expected response after its launch in August.

But with more service providers adding the BlackBerry smart phone and RIM launching an aggressive promotional drive, the Torch 9800 saw strong demand in the US and dozen of other markets around the world.

In fact, the Torch has been launched in 75 countries so far.

Looking to the future, the biggest Canadian technology company - which is based at Waterloo near Toronto - said it expects its fourth quarter revenue in the range of $5.5- $5.7 billion.

However, these results in February will come before RIM launches its much-expected PlayBook tablet to take on rivals, mostly Apple’s iPad.

The BlackBerry maker has already launched a big campaign to tout its tablet as much better against the iPad. Apple too is set to unveil iPad2 early next.

(Gurmukh Singh can be contacted at gurmukh.s@ians.in)