TORONTO ? The BlackBerry's inability to compete with the iPhone and smartphones running Google's Android system shone through Thursday as the maker of the BlackBerry, Research In Motion Ltd., said its earnings and revenue fell.
The Canadian company said it's been hurt by product delays. Its stock fell nearly 15 percent in extended trading after the release of results for the latest quarter.
RIM said it is cutting an unspecified number of jobs to reduce costs. It gave an outlook well below Wall Street's expectations for the current quarter and the full year.
"The existing portfolio of BlackBerry products has been in market for close to a year, and delivering new products has proven more challenging than anticipated," RIM Co-CEO Jim Balsillie said on a conference call with analysts.
The announcements are the latest signs of trouble for RIM. RIM dominated the corporate smartphone market and has sought to expand its appeal to consumers, but has recently had trouble with consumers because the phones aren't perceived to be as sexy as Apple's or Google's.
BlackBerrys are known for their security and reliability as email devices, but they haven't kept pace with Apple's iPhones or phones based on Google Inc.'s Android software when it comes to running third-party applications.
Balsillie also acknowledged that the launch of the company's tablet computer could have gone better. RIM got poor reviews on the Playbook. The company said it sold 500,000 of the tablets.
"The PlayBook launch did not go as smoothly as we had planned," he said.
Co-CEO Mike Lazaridis made a rare appearance on the conference call as the two defended the business and their role as co-CEOs. RIM has an unusual leadership structure, where two executives, Balsillie and Lazaridis, serve as both co-CEOs and co-chairmen. Dissident shareholders are calling for RIM to separate the roles of CEO and chairman.
Some believe RIM is following the same trajectory as Finish handset maker Nokia, which last month warned that its second-quarter sales and margins are expected to be much lower than anticipated because of the competition on devices in both the high- and low-end market.
"We have a strong business," Lazaridis said. "We have made major platform upgrades, and we are almost through this transition."
Lazaridis said RIM was already far along in developing its next-generation BlackBerrys when it realized that U.S. customers wanted higher performance, requiring the company to upgrade the chips used. That posed an engineering challenge and delayed products, he said.
For the three months that ended May 28, RIM earned $695 million, or $1.33 per share. That's down from $769 million, or $1.38 per share, a year ago.
Revenue for the fiscal first quarter rose 16 percent to $4.9 billion from $4.2 billion.
Analysts polled by FactSet expected earnings of $1.32 per share on revenue of $5.1 billion.
RIM is facing fierce competition from Apple Inc.'s iPhone and smartphones that run Google Inc.'s Android operating system.
Aurion Capital Management analyst Greg Taylor said the results reflect the fact that RIM doesn't appear to have any new smartphones coming out soon.
"Everyone wants to have the newest and greatest device, and they don't have anything to sell right now," Taylor said. "Their guidance shows they're basically not expecting new smartphones this quarter."
For the current quarter, RIM forecast earnings of 75 cents to $1.05 per share, excluding items. Analysts are looking for far higher earnings of $1.36 per share. The company expects revenue of $4.2 billion to $4.8 billion, below analysts' average expectation of nearly $5.3 billion
RIM lowered its full-year earnings outlook sharply. It now expects earnings of $5.25 to $6 per share for fiscal 2012. In April, it had forecast $7.50 per share.
RIM said earlier Thursday that Don Morrison, its chief operating officer, is going on medical leave.
Balsillie said the job cuts are "an incredibly difficult decision" but said they do not constitute a restructuring of the company.
"We have grown so much over the past years and we've done 14 or 15 acquisitions over the last bit. This is just a streamlining," Balsillie said. "In no way shape or form would I call this a restructuring."
Lazaridis said they understand that recent times have been difficult for shareholders and employees, but said he's confident things will turn around.
Before the earnings RIM's stock was already off 50 percent from its 52-week high. In April, the company slashed earnings and sales forecasts as it faces increased competition. In extended trading after the results came out, RIM's stock fell $5.19, or 14.7 percent, to $30.14. In the regular session, the stock was up 16 cents to close at $35.33 before the earnings were issued.
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