News Link • Economy - International

The Key Number in RIM’s Earnings Release

The latest quarterly report from Research In Motion Limited (NASDAQ/RIMM; TSX/RIM) was a positive surprise, which resulted in the shares moving up strongly following the news. Yes, Research In Motion (RIM) has had one of the sharpest declines in recent memory among technology stocks, but some investors are stepping in thinking that perhaps the worst is over and the market view has become overly bearish. The important thing to note when investing is whether a company can beat expectations. The market view is what drives prices in any market. The more popular something is, the higher the demand and, thus, the higher the price. RIM’s stock has been beaten up with extremely poor sales results, therefore the market view was negative, and rightly so. However, this quarter the company exceeded estimates, which admittedly were low, for both revenue and the number of devices shipped. The CEO also stated that the company’s customer base also went up, from approximately 78 million users to 80

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