INSTANT VIEW: RIM profit, outlook disappoint analysts

TORONTO (Reuters) - BlackBerry maker Research In Motion (RIM.TO)(RIMM.O) reported weaker quarterly profit and an outlook that fell short of analyst expectations on Thursday, sending its shares down almost 10 percent in after-hours trading.

LINKS:

KEY POINTS:

* Q2 EPS $0.83 vs $0.86 a year earlier

* Revenue $3.53 billion

* Shares plunge 9.6 percent

* Says now has 32 million subscribers

COMMENTARY:

MATTHEW THORNTON, ANALYST AT AVIAN SECURITIES:

"There were a couple of line items that were generally in line with expectations -- gross margins were a little bit better -- but by and large, I think everything's pretty light driven by the units and the revenue line.

"Subscriber additions for the next quarter at least are in line, this quarter was a little bit of a disappointment."

"I think the expectations ramped into the quarter, which always presents some risk.

"Our message to clients was don't go into this quarter and put fresh money in there given the elevated expectations, but I think these numbers were even light of where we were on expectations."

DUNCAN STEWART, ANALYST AT DSAM CONSULTING:

"The numbers were pretty OK. Slight beat on the earnings line, but only a few pennies. Slight miss on the revenue line. I think most of the Street was looking for a beat there so obviously a miss. A miss isn't as good as a make and a make even might not have been good enough.

"The guidance going forward on revenue certainly looks a little bit light, but there is a range there and it seems to be near the lower end.

"A lot of people on the Street have been talking up Q3 as one where RIM was going to come and blow everybody away and so there was this expectation and even though it's perfectly decent guidance with all kinds of great year-over-year growth and gross margins, it doesn't live up to the advance billing..."

PETER MISEK, ANALYST AT CANACCORD ADAMS:

"Revenue and revenue guidance are light (and) net subscriber additions were light.

"Impact (is) negative (but) we think the guidance is conservative and would be buyers here."