RIM warns on Q4 profit, despite jump in new subs

Research In Motion Limited (RIM) said fourth quarter earnings will come in at the low end of expectations, despite a spike in new subscribers.

The BlackBerry-maker expects net subscriber additions to be more than 20% above the 2.9 million forecast in December.

But it said gross margin and earnings per share would be "at the low end of the previously guided ranges", while revenue would likely be at or near the mid-point of its forecast.

In December RIM forecast revenue of between $3.3 billion and $3.5 billion and earnings per share of 83 cents to 91 cents, ahead of analysts' expectations.

RIM's stock fell 14.51% to $48.76 after the announcement. It will report its Q4 result on April 2. Its stock price climbed sharply in December following the upbeat forecast.

RIM said it had seen "record levels" of sales in December and strong sales after the holiday season. It attributed this to "product mix, lowered channel inventory levels and an increased ratio of new subscriber sales to upgrade and replacement sales."

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