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Research In Motion Ltd (BBRY): Determining the Best Way to Play the BB10 After Earnings

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On Thursday, the technology maker Research In Motion Ltd (NASDAQ:BBRY) announced earnings and finished the session with a slight loss after opening with decent gains. The quarter itself was somewhat confusing and was mixed. Therefore, I am assessing it and determining if Research In Motion Ltd (NASDAQ:BBRY)’s rally has come and gone.

Quick look

The earnings headline read, “BlackBerry Beats but Loses Subscribers.” It was the tale of good and bad, as revenue met, shipments beat, the company swung to a profit, but subscribers fell. There were many opinions for its $2.68 billion quarter with an EPS of $0.22. Therefore, let’s look at some of the more interesting findings from the quarter.

370,000: The best number of the quarter

After the quarter and the conference call, the big news was the 370,000 PlayBook tablets that the company had sold. This number is fantastic and may suggest that the company is seeing an increase in demand. Because after all, for each PlayBook sold, its operating system becomes more attractive to developers and helps to transition consumers to Research In Motion Ltd (NASDAQ:BBRY).

Research in Motion Ltd. (BBRY)

Courtesy: Research In Motion Ltd (NASDAQ:BBRY) Press Info

The only problem is that this was due to heavy discounting in an attempt to move the company’s large inventory. But like I said, the bigger upside may not be in the one-time profits from sales of PlayBook’s but rather long-term consumer transitions and developer interest. Overall, I grade the 370,000 tablets sold as an A- and hope that this signals a continued trend.

One-million Z10s shipped!

In my opinion, one-million Z10s shipped in the quarter is a major accomplishment. This was the company’s version that did not include its famous keyboard, and there is a large belief that many consumers are still awaiting the Q10, which includes a keyboard. The only negative to consider is that the number does not indicate the number of units sold, rather the number of units shipped to carriers and distributors. Although, CEO Thorstein Heins did say specifically that 55% of Z10 buyers have been from other platforms. If this is accurate, then this might be a good indication of long-term success, and that most of its subscribers are awaiting its Q10, very likely scenario.

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