Blackberry Maker RIM reported Q2 net income at $329 million vs. $797 million which it reported in the same quarter last year, down 59%.
Revenue came in at $4.2 billion vs. $4.6 billion in Q2 previous year, down 9%.
"Uses of cash included strategic purchases of intellectual property assets associated with RIM's participation in a consortium of companies that successfully bid to acquire Nortel Networks Corporation's patent portfolio, of which RIM's cost is approximately $780 million, capital expenditures of approximately $285 million and working capital requirements," the company said
For Q3 of FY- 2012 fiscal ending November 26, 2011, the company expect revenues to be in the range of $5.3-5.6 billion.
The result didn't went well with the markets and the stock fell down more than 18% in Toronto Stock Exchange to close at $24 CAD. 52 week high low for the stock is 69.3 / 21.4
- In FY 2010-2011 the company recorded a revenue of $19.9 billion and net income of $3.4 billion (EPS = $6.34). At the current market price of $24 the stock is available at just 4 times PE multiple based on previous year EPS numbers and 0.6 times based on Fiscal 2011 EV to Sales ratio.
- In FY 2011-2012 the first half revenue and net income for the company is $9.1 billion and $1.02 billion respectively. Even with the current run rate the company should achieve a net income of at least $ 2 billion in the current fiscal. At $24 the stock price is discounting fiscal 2012 EPS by 6.25 times.
- Investors with 1 year perspective can buy the stock for a descent return as the current valuation is very attractive vis-a-vis the company fundamentals.