RIM Manufacturer To Halt Blackberry Production

Toronto-based original device manufacturer Celestica on Monday announced that it will stop producing hardware for struggling mobile device vendor Research In Motion.

Celestica stated that it will wind down manufacturing services related to BlackBerry devices over the next three to six months, and it expects restructuring charges to be less than $35 million. RIM reported earnings for its fourth fiscal quarter in late March, missing expectations and painting a bleak picture for its first two quarters in fiscal 2013.

The vendor also announced that it would take a $1 billion charge related to unsold BlackBerry device inventory. RIM will not launch its first BlackBerry 10 smartphone until late this year, and industry watchers are expecting stiff competition from Apple’s next iPhone and a variety of new Android smartphones. Some contents from Celestica’s June 18 press release follows below.


“Celestica Inc. (NYSE, TSX: CLS), a global leader in the delivery of end-to-end product lifecycle solutions, today announced that over the course of the next three to six months, it will wind down its manufacturing services for Research in Motion (RIM).”

“More details about this announcement will be provided as part of the company’s second-quarter results press release and conference call, which are scheduled for Friday, July 27.”

“In addition, Celestica is reaffirming its second quarter financial guidance that was provided on April 24. The company anticipates revenue to be in the range of $1.65 billion to $1.75 billion, and adjusted net earnings per share to be in the range of $0.20 to $0.26.”

Is it only a matter of time before RIM plunges to its final downfall? Or do you think that there is still a slim chance for recovery?

 

Source: Digg

Image: Jamie & Adam Tested

RIM to Have New Chairmen?

A new report suggests that Research in Motion, the company behind the BlackBerry, is looking to make some changes to its board of directors, changes that could cast aside current co-chairmen Mike Lazaridis and Jim Balsillie.

According to the Financial Post, a committee of independent directors are assessing whether Lazaridis and Balsillie — who also serve as co-CEOs of the beleaguered company — should be replaced as chair.

The Post cites sources familiar with the matter as pegging Barbara Stymiest, who joined the RIM board in 2007, as the leading candidate for replacement. Back in July, RIM agreed to a review of its governance structure. This agreement followed calls from unhappy shareholders for the company to separate the roles of chair and chief executive. As the Post notes, separating the roles of chairman and CEO is more common in Canada and the UK than it is in the United States.  The governance review is expected to be delivered by Jan. 31.

RIM struggled significantly in 2011. Not only did its stock drop dramatically, it cut 2,000 jobs and it wrote-down nearly $500 million on its PlayBook tablet. RIM continues to slash prices on the PlayBook, but that hasn’t been enough to stop the decline in market share. Even worse, during its last quarterly earnings call, the company announced that its next-generation BlackBerry 10 devices would be delayed until late 2012.

 

Source: Mashable

Image: Technorati