RIM builds up warchest as losses slow

 
Michael Bow
Follow Michael
BLACKBERRY maker Research in Motion yesterday reported a better than expected $235m (£144m) second quarter loss as it builds a cash war chest ahead of the make-or-break launch of its new operating system next year.

The Canadian company, which said it had shipped 7.4m BlackBerrys over the quarter, improved on its net income loss of $518m in the quarter ending 2 June but could not match the $329m profit recorded this time last year. The company said it expected to report a further operating loss in the next quarter.

However the firm once again improved its cash pile to $2.34bn up from $2.23bn at the end of last August as it builds up to the launch of its new operating system BlackBerry 10, expected in January.

Markets sent shares in the RIM soaring 15 per cent in after hours trading as investors looked favourably on the firm’s position

Chief executive Thorsten Heins, said: “Make no mistake about it, we understand that we have much more work to do, but we are making the organisational changes to drive improvements across the company.”

The firm has managed to build its BlackBerry subscriber base to 80m global subscribers over the quarter.