RIM continues to plow ahead

Posted Dec 22nd 2006 9:09AM by Eric Buscemi
Filed under: Earnings Reports, Good news, Microsoft (MSFT), Research in Motion (RIMM), Palm Inc (PALM)

Research In Motion Limited (NASDAQ: RIMM) naysayers have been proven wrong again. RIM reported outstanding results last night, once again proving that selling a wireless data device is difficult and barriers to entry high.

Revenue for 3Q2007 was $835.1 million, up 26.8% from $658.5 million in the previous quarter
Revenue was up 49% year-over-year from $560.6 million
Approximately 875,000 BlackBerry subscriber accounts were added in the quarter. This means BlackBerry is adding customers at or higher rate than wireless voice providers
At the end of the quarter, the total BlackBerry subscriber account base was approximately 7 million

Skeptics have believed RIM would go the way of many fad tech products have as Microsoft Corporation (NASDAQ: MSFT) and wireless service providers introduced their own products. However, it hasn't happened. Most service providers are partnering with RIM rather than competing against them.

While Palm Inc's (NASDAQ: PALM) Treo numbers came in weak and most data points in the wireless handset business point to a poor holiday season for service providers, RIM is one area of strength.

If you do not own RIM, it would be hard to chase the stock this morning. A market correction in 2007 might present an opportunity to get into this stock. But make no mistake, this is a must follow stock.

Tags: blackberry, microsoft, msft, palm, research in motion, ResearchInMotion, rim, rimm, treo