The writing has been on the wall for quite some time now. But today, as BlackBerry maker Research In Motion once again reported quarterly earnings and revenue that missed analysts' expectations, things looked especially dire. RIM had previously offered guidance of $4.6 to $4.9 billion in revenue for Q4, but revenue actually came in lower at $4.2 billion.
After trading of RIM was halted for the announcement, the stock fell a precipitous 9% upon the commencement of after-hours trading. Although some of the losses were regained, other losses for RIM will be permanent - namely
the loss of some key senior executives.
Most notable within the shakeup is former co-CEO Jim Balsillie, who is leaving his post as director. Meanwhile, Chief Executive Thorsten Heins, who replaced co-CEOs Balsillie and Mike Lazaridis earlier this year, said other options remain on the table for RIM, including a potential sale of the company.
"I did my own reality check on where the entire company really is. Having had the benefit of going through this process from the vantage point of CEO, it is now very clear to me that substantial change is what RIM needs," Heins said during today's conference call.
Unable to compete with others - chiefly Apple - in the smartphone and tablet space, things aren't looking up for the one-time king of the mobile world.
"Ultimately, RIM is taking half measures, baby-stepping their way to a reorganization and they're not moving fast enough," Ed Snyder, an analyst with Charter Equity Research, tells Reuters. "They need a wholesale change in the culture and the management of the company."