RIM profit, outlook punch through economic gloom

By Wojtek Dabrowski

TORONTO (Reuters) - BlackBerry maker Research In Motion (RIM.TO: Quote, Profile, Research, Stock Buzz)(RIMM.O: Quote, Profile, Research, Stock Buzz) reported a higher fourth-quarter profit on Wednesday that topped expectations, and delivered a strong outlook that suggested the company is comfortably weathering the slowdown in the U.S. economy.

RIM's shares, which roughly tripled in 2007 but have stagnated since the start of this year, rose 6 percent in after-hours trading as investors reacted to the results, which were also lauded by analysts.

The company said it earned $412.5 million, or 72 cents a share, in the three months ended March 1. That was up from a profit of $187.4 million, or 33 cents a share, in the same period a year earlier.

That beat a forecast made by the company in February, when it told the market to expect earnings of 66 to 70 cents a share, and sent RIM shares higher in after-hours Nasdaq trade.

For the upcoming first quarter, the company said it expects revenue of $2.23 billion to $2.3 billion and a profit of 82 cents to 86 cents a share -- better than the 77 cents expected by analysts, according to Reuters Estimates.

Canaccord Adams analyst Peter Misek said the "monster" results are even stronger because of RIM's first-quarter forecasts in the face of a faltering U.S. economy.

"What's impressive is that, given the macro environment that they know about, they guided this strong," he said.

Some analysts have raised concerns that job losses in corporate America would lead to slower sales of the BlackBerry, a staple device of most executives. As well, observers have warned that companies and big government departments could delay upgrading to newer versions of RIM's smartphone lineup.