Shares of Research In Motion (TSX:RIM) are expected to take a beating today as investors react to the BlackBerry-maker's dismal earnings results and another delay to its new smartphones.
RIM stock tumbled almost 15 per cent in pre-market trading in New York, losing US$1.33 to US$7.80 - a strong indication of how investors will react when the market opens in Toronto.
The Waterloo, Ont.-based company also said it would lay off a third of its workforce - or about 5,000 employees - to contain costs as it pushes ahead with a complete revamp of the BlackBerry operating system.
The announcements came as a shock because the company had insisted it would release new phones by the end of this year.
The company, which reports in U.S. dollars, posted a loss of US$518 million or 99 cents per share for its latest quarter, steeply missing analyst expectations.
The results marked a decline from the profit of $695 million or $1.33 per share a year ago.
(The Canadian Press)