For Research In Motion Ltd (BBRY), It All Comes Down to This

Going forward
Based on the 6% jump in share price since Research In Motion Ltd (NASDAQ:BBRY) announced earnings in late March, investors either viewed the one million Z10s sold as a win, or brushed that aside to focus on other news, and there were a lot of positives. Research In Motion Ltd (NASDAQ:BBRY)’s profitable quarter took many by surprise, and word that 55% of Z10 buyers came from other platforms bodes well for both the Z10 and Q10. Gross margins also impressed, jumping to 40.1%, and let’s not forget the winning combination of zero long-term debt and Research In Motion Ltd (NASDAQ:BBRY)’s $2.6 billion in cash and equivalents.

The decline in Research In Motion Ltd (NASDAQ:BBRY)’s service subscribers took a bit of the luster off fiscal Q4 results, as did the drop in revenues, sequentially and compared to last year. And with CEO Thorsten Heins’ commitment to ramp up marketing costs by as much as 50% this quarter, breaking even will be a challenge.

The challenges facing Research In Motion Ltd (NASDAQ:BBRY) aren’t insurmountable, as last quarter demonstrated. But one million Z10s, limited production time or not, isn’t going to get it done. For Research In Motion Ltd (NASDAQ:BBRY) to become relevant again — not just stay afloat, but become a genuine threat to companies of the smartphone world like Apple, Google Inc (NASDAQ:GOOG), and Nokia — it’s up to the Q10, keyboard and all.

The article For BlackBerry, It All Comes Down to This originally appeared on Fool.com and is written by Tim Brugger.

Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google.

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