Research In Motion posted higher-than-anticipated earnings, reporting a net profit of $140.8 million and 705,000 new subscribers in the second quarter. That subscriber growth is continuing with an average of 60,000 new users signing up each week during the first three weeks of this month alone, RIM said. Investors didn't lose their enthusiasm for RIM stock even when the company disclosed that it has begun an investigation into how it handled stock options. RIM said it will likely restate earnings to correct accounting errors resulting from a voluntary review. This will ultimately reduce its net earnings since 1997, when it became publicly traded, by $25 million to $45 million. Any changes are not likely to significantly alter current or future results, the company said.
For more about RIM's second-quarter results:
- check out this article [1] from The New York Times (sub. req.)
Links:
[1] http://www.nytimes.com/2006/09/29/business/29rim.html?_r=1&ref=technology&oref=slogin