RIM profit rises but shares sink on outlook

RIM's shares fell more than 5 percent in after-hours trade from their close on the Nasdaq market as investors digested the results.

RIM said it earned $643.03 million, or $1.12 a share, in the three months ended May 30. That was up from a profit of $482.5 million, or 84 cents, a year earlier.

Revenue jumped to $3.42 billion from $2.24 billion a year earlier as the smartphone maker added another 3.8 million new subscribers, pushing its total to almost 29 million.

For the second quarter ending August 29, RIM said it expects revenue of between $3.45 billion and $3.7 billion and earnings per share of between 94 cents and $1.03.

Canaccord Adams analyst Peter Misek said the results marked "a solid quarter," but said RIM's outlook may fall short of what some were forecasting.

"Expectations going into this were really, really high so I think there's going to be a little bit of disappointment with the guidance," he said.

Earlier this week, RIM added another smartphone to its BlackBerry lineup as it aims to win market share among both executives and mainstream consumers despite tough economic conditions.

The new model is known as the BlackBerry Tour and falls somewhere between the BlackBerry Curve, which has proved very popular with consumers, and the BlackBerry Bold, which RIM has aimed at high-end corporate users.

RIM shares, which closed Thursday at $76.55 on the Nasdaq, fell more than 5 percent to $72.70 in post-market trade. On the Toronto Stock Exchange, RIM's shares finished 37 Canadian cents lower at C$86.79.