The Canadian company said it's been hurt by product delays. Its stock fell 14 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.
Co-CEO Mike Lazaridis made a rare appearance on the call as the two defended the business and their role as co-CEOs.
Lazaridis said RIM was already far along in developing its next-generation BlackBerrys when it realized that U.S. customres 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.
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.
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 $4.92, or 14 percent, to $30.41.
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