Research In Motion May Cut Forecasts, Analysts Say (Update1)
By Sean B. Pasternak
c.2001 Bloomberg News
(Adds customers in sixth paragraph, Merrill Lynch report in
seventh. Closes shares in last paragraph.)
Waterloo, Ontario, April 5 (Bloomberg) -- Research In Motion Ltd.,
maker of the BlackBerry e-mail pager popular with lawyers and brokers,
probably will lower sales forecasts, analysts said.
A revised outlook could come as soon as next week, when the company
reports financial results for the year that ended in February, said
three analysts polled by Bloomberg News. Research In Motion is
expected to have sales of $359.5 million in the current fiscal year,
according to the mean estimate of analysts surveyed by IBES
International Inc.
``It's too soon to say by how much, but it would be sensible to
assume they will nudge down (guidance) somewhat,'' said Paul Coster,
an analyst at JP Morgan Securities in New York. He rates the stock a
``long-term buy.''
Research In Motion officials declined to comment.
The analysts said Research In Motion customers are spending less on
pagers and other communications devices as the economy slows.
Waterloo, Ontario-based Research In Motion's BlackBerry lets people
send and receive e-mail on a small, portable device.
Corporations that include Citigroup Inc. unit Salomon Smith Barney
Inc., Credit Suisse First Boston Inc. and Merrill Lynch & Co. use the
BlackBerry as an alternative to a cellular phone.
``Anecdotal evidence continues to mount that many of RIM's major
enterprise customers -- especially financial services companies and
technology companies -- have halted new orders of RIM devices,''
Merrill Lynch analyst Virginia Genereux wrote in a report.
The company also faces a challenge from Palm Inc., the No. 1 maker
of handheld organizers. Palm Chief Executive Carl Yankowski has said
the Santa Clara, California-based company will introduce a device to
compete with BlackBerry.
Research In Motion shares rose C$5.78 ($3.67), or 20 percent, to
C$35.28 in Toronto. The stock has fallen 71 percent this year.
--Sean B. Pasternak in the Toronto newsroom (416) 364-7300 or
spasternak@bloomberg.net |
