BlackBerry maker Research in Motion posted very strong fourth quarter results on Thursday, beating analyst's revenue and subscriber growth estimates, while absolutely crushing expectations for net
subscriber additions in the first quarter. Perhaps most important, the company expects margins to stay in the 40% range for the fiscal year; Silicon Alley Insider notes that a margin collapse had been
a key concern heading into the earnings call.
Revenue for the fourth quarter came in at $3.46 billion, ahead of the Street consensus of $3.40 billion. Net subscriber additions were 3.9
million, well-ahead of the company's own estimate, which had been 3.5 million. RIM also estimates between 3.7 and 3.9 million net subscriber additions in the first quarter, handily beating RBC Capital
Markets' estimate of 3.0 million.
RIM's margins came in aligned with expectations at 40%. However, guidance for first quarter gross margins at between 43-44% came in well-ahead of RBC's
estimate of 40%. The company also expects margins to stay in the 40% range for the year. RIM shares soared 20% in after hours trading.
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