While the tech industry had already braced itself for RIM’s lower then expected financial numbers, during their earnings call, no one expected the bombshell announcement that former co-CEO/and board director, Jim Balsillie would leave the company. Regarding his decision to “retire” from RIM, Balsillie said: “As I complete my retirement from RIM, I’m grateful for this remarkable experience and for the opportunity to have worked with outstanding professionals who helped turn a Canadian idea into a global success.”
Balsillie’s departure from RIM wasn’t the only one, two other high level executive also decided that now was a good time to leave. RIM’s CTO, David Yach, also decided to “coincidentally retire” and COO, Jim Rowan has decide to leave to “pursue other opportunities.”
If those departures weren’t enough of a dark cloud above RIM’s head, the Waterloo company also saw a 19% drop in revenue from the previous third quarter, only pulling in $4.2 billion and had a total GAAP loss of $125 million. RIM also only “shipped” 11.1 million BlackBerry’s during the quarter, down a whopping 21%.
Current RIM CEO Thorsten Heins, says the company faces some tough quarters ahead, but he’s taking the necessary steps to address them. Let’s face it, when three top executives, one of whom, was the former co-CEO, abandons the ship, all is not well. I have a gut feeling that RIM’s BlackBerry 10 OS will not be the life-saver that they need and either RIM will desperately try to license the software after their new devices fail to sell or they’ll just break the company down and sell of it’s patents.
Either way, Heins is right, RIM does face some seriously tough quarters ahead, the question is, will they survive them?