MONTREAL - Research In Motion Ltd. (TSX:RIM) has reported a drop in its first-quarter profit compared with a year ago and announced a plan to cut jobs across the company.
The BlackBerry maker, which has been under pressure in recent months from Apple's iPhone and smartphones using Google's Android operating system, said it will be looking to eliminate redundancies and reallocate high growth opportunities
"The reduction of our headcount is an incredibly difficult decision," co-chief executive Jim Balsillie said told a conference call with financial analysts Thursday.
The efficiency that will come from the cuts will allow the company to "grow profitably," he said.
RIM, which keeps its books in U.S. dollars, says it earned US$695 million or $1.33 per diluted share for the quarter ended May 28 on $4.91 billion in revenue.
That compared with a profit of $769 million or $1.38 per diluted share a year ago on $4.24 billion in revenue.
The average analyst revenue estimate had been for a profit of $1.33 per share, according to data compiled by Thomson Reuters.
Shares in RIM, which reported its results after the close of markets, were down nine cents at $34.37 on the Toronto Stock Exchange.
The stock was down 15 per cent in after-hours trading.
Balsillie said he expects that RIM will see strong profit growth in later in the year.
"The slowdown we saw in the first quarter is continuing into Q2, and delays in new product introductions into the very late part of August is leading to a lower than expected outlook in the second quarter," Balsillie said.
During the quarter, RIM said it shipped approximately 13.2 million BlackBerry devices and approximately 500,000 Playbook tablets.
Analysts had estimated that RIM would ship between 12.6 million and 13.6 million BlackBerrys and about 500,000 PlayBooks tablets in the quarter.
Investors have called for a change to RIM's management structure, saying there should be only one chief executive and an independent chairman of the board. Balsillie and co-chief executive Mike Lazaridis also serve as co-chairmen of the company.
However Balsillie said Thursday the company's management structure is working.
"Neither of us could have taken the company this far alone," he said.
In an unusual move, Lazaridis spoke on the call, saying he too supports the company's management structure and that RIM is on track to transition to new products.
"I truly believe we are near the end of the transition," Lazaridis said.
RIM lowered its financial guidance in April, warning that it expected to sell fewer BlackBerrys at lower prices in its first quarter as it moves to newer smartphones.
RIM has said it expected to earn between US$1.30 and $1.37 per diluted share for the first quarter of its 2012 financial year, which ended May 28. That was down from earlier guidance for a profit of US$1.47 to $1.55.
In its outlook for its second quarter, RIM said it expected revenue of between $4.2 billion and $4.8 billion, while earnings per share for the second quarter are expected to be between 75 cents and $1.05 per diluted share, excluding any one-time charges.
Earnings per share for the company's full 2012 financial year are expected at between $5.25 and $6 per diluted share, excluding any one-time charges or share repurchases.