RIM Adds 680,000 Users in First Quarter

The BlackBerry 7100t is displayed during the 3GSM World Congress 2005 in a Cannes, France file photo from Feb. 15, 2005. Research In Motion Ltd. releases first-quarter earnings. (AP Photo/Lionel Cironneau, File) (Lionel Cironneau - AP)

NEW YORK -- Research In Motion Ltd. said Thursday it earned $129.8 million in its latest quarter as the maker of BlackBerry wireless devices and services added 680,000 users, boosting revenue by 35 percent.

The profit for RIM's fiscal first quarter, equal to 68 cents per share, was fairly steady compared with the same period last year, when the Canadian company posted net income of $132.5 million, or 67 cents per share.

Analysts had expected a first-quarter profit of 65 cents, according to a survey by Thomson Financial. RIM's stock jumped nearly 4 percent in after-hours trading, rising $2.55 a share to $68.53 after gaining about 26 cents during the regular session. The report was issued after the market's close.

Revenue totaled $613.1 million for the three-month period ended June 3, rising from $453.9 million a year earlier.

About 71 percent of those sales came from selling BlackBerry devices, which double as cell phones. About 19 percent came from providing wireless e-mail service to its customer base, which totaled 5.5 million at quarter's end. During the quarter, RIM shipped 1.2 million devices.

RIM also said it expects revenue for the current quarter to total from $620 million to $650 million with subscriber account additions between 675,000 and 700,000. The company expects a net profit from 67 to 73 cents per share.

The strong first-quarter showing came despite growing competition in a market RIM pioneered with its addictive wireless device for real-time delivery of e-mail. Cell phone makers and service providers see mobile e-mail access as a big opportunity for revenue growth.

Notably, rival device maker Palm Inc. also reported robust quarterly results on Thursday, saying its quarterly profit surged again on strong sales of its Treo smart phones. The company said Treo sales reached a milestone, surpassing for the first time $1 billion in annual revenue as it shipped 2.3 million units in its fiscal 2006.

In other signs of the rising competition during the quarter, Motorola Inc. introduced the anxiously awaited "Q," which like the BlackBerry and Treo features a full keyboard for typing messages by thumb, but runs on a Windows operating system from Microsoft Corp. Likewise, Nokia Corp. has launched its a similar device based on Symbian, a third major rival to the BlackBerry platform.

"RIM delivered a solid quarter with strong revenue, earnings and subscriber results," Jim Balsillie, Chairman and Co-Chief Executive said in a statement. "BlackBerrys ongoing competitive dominance is driving strong growth in existing markets and fueling substantial international expansion."