The Waterloo, Ontario-based maker of mobile communications devices said earlier today that it now expects net subscriber additions for the quarter ending February to be 15% to 20% higher than the 1.82 million previously forecasted, as the anticipated seasonal slowdown did not occur. Total BlackBerry subscriber account base is expected to be approximately 14 million at the end of the quarter.
The company also said it still expected earnings for the quarter of 66 to 70 cents a share and revenue of $1.8 billion to $1.87 billion. The stock climbed 12% to $109.60 on the positive outlook.
“BlackBerry smart phones proved to be a big hit throughout the holiday selling season and we’re pleased to see RIM’s business momentum continuing in the new year,” Jim Balsillie, co-chief executive said in a release. “The seasonal slowdown in net subscriber account additions that we expected in the new year did not occur and our focused execution with partners has continued to produce strong results within both enterprise and consumer segments.”
“RIM is blowing the doors off with 100% year-over-year growth. It redesigned its products starting in 2006 to be more fashionable and consumer friendly — enterprise users are consumers, too — and is reaping the rewards. Palm is getting squeezed by RIM for enterprise users and by Apple for entertainment-oriented smartphone buyers,” said analyst Greengart.