Research In Motion Ltd., losing ground to Apple Inc. and Google Inc., said it will delay the BlackBerry 10 phone release, cut 5,000 jobs and posted a quarterly loss that was five times bigger than projected.
The stock plunged 22 percent after the company reported a first-quarter loss of 37 cents a share, excluding some items. Analysts had estimated a 7 cent loss, according to data compiled by Bloomberg. Sales tumbled 43 percent to $2.8 billion, missing an estimate of $3.05 billion.
RIM, which stopped giving sales and profit forecasts last quarter, has failed to keep up with the capabilities of Apple’s iPhone and Android devices, prompting customers to flee the BlackBerry platform. The company is working on an operating system with better Web and touch-screen features -- a lineup that now won’t arrive until the first quarter of next year, more than a year later than originally planned.
“The delay may just be the final nail in the coffin,” said Sameet Kanade, an analyst at Northern Securities in Toronto who has a sell rating on the stock. “This is not just a disappointing quarter, but is a big question mark about the company going forward.”