Research in Motion Limited (RIM) stock dropped sharply late yesterday and today, with its shares on the NASDAQ exchange falling 8% to $10.33 by midday and many analysts forecasting it will continue to slide.
Some blame the share-price decline on the business update issued yesterday by company president and CEO Thorsten Heins. He said the first-quarter financial results will likely reflect the competitive business environment as the company goes through “a significant transformation.” He added that “financial performance will continue to be a challenge for the next few quarters.”
Within the past 12 months, the stock has lost 74% of its value. RIM will next release quarterly financial results on June 28.
In the business update, Heins also said the company has called in both JPMorgan Chase and RBC Capital Markets to evaluate its options. These include partnerships, licensing software, and “strategic business model alternatives.” The company is also looking to reduce spending and headcount.