Research In Motion Ltd. (NASDAQ: RIMM) saw a solid Q1 period, but corporate customer additions dropped while consumer customer additions soared (well, that was the implication anyway). Although the BlackBerry line of devices is selling quite well, RIM announced that it may not be able to meet Q2 targets of $0.98 EPS and $3.61 billion in sales.
RIM executives referenced a quarter that ends August 29 of $0.94 to $1.03 EPS and $3.45 billion to $3.7 billion in sales. It's leaving the possibility that the spending it's seeing to develop the "spectacular" road map ahead -- combined with intense competition with the iPhone and the newer Palm Inc. (NASDAQ: PALM) Pre -- may cause a dip in the current quarter.
With the lowered expectations, RIMM shares sunk about 5.5% yesterday. Matt Thornton with Avian Securities said "The stock had doubled this year and when expectations get that high and you don't exceed them, you take it on the chin." He's right on. Add to that today's release of the iPhone 3GS and the heat keeps in RIM's kitchen for the foreseeable future.
If you're a holder of RIMM shares, what's your take?
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