Will use it to ramp up Blackberry 10 production
Troubled Blackberry maker RIM has told the world that the company built up a nice cash reserve, despite the fact its “successes” are being measured by how higher or lower than expected their losses are.
RIM’s shares surged up to 20 percent immediately after its Q2 earnings report. As grim as the report may seem at a glance, the company still managed to outdo Wall Street’s forecasted revenue and ship much more than anyone expected.
Apparently, the company owes its share jump to the aforementioned cash reserves, courtesy of collecting debts, cutting costs and drawing down the inventory. All the signs suggest the company will have enough dough to boost production of its new Blackberry 10 devices.
Many analysts were surprised to see that RIM isn’t in such bad shape everyone thinks, despite the fact last year’s Q2 profit of $329 million turned into to this year’s Q2 net loss of $235 million. Analyst Colin Gillis said “You still have revenue declining 31 percent on a year-over-year basis but it's certainly not the train wreck that a lot of people feared.”
It seems RIM has put all its eggs into a single basket – Blackberry 10. The company says it is planning on snatching away market share from its rivals and attracting users who haven’t used smartphones before, but first things first.