Is Research In Motion Ltd (BBRY) a Pick After the Earnings Report?

Research In Motion Ltd (NASDAQ:BBRY), a company that is on its way to becoming an attractive investment once again, reported its results for the first quarter of 2013. In this article, I will examine the company’s financials to determine whether or not the stock will be an attractive investment.

Financials

BlackBerry reported a GAAP loss from continuing operations of $84 million, compared with a GAAP income of $94 million in the previous quarter. The loss was caused by the Venezuela foreign currency restrictions that impacted GAAP earnings and adjusted earnings by approximately $0.10 per share. The adjusted net loss from the continuing operation was $67 million. The adjusted loss excluded the impact of pre-tax charges of $26 million related to the Cost Optimization and Resource Efficiency program.

The company reported a revenue of $3.1 billion, up 15% from the previous quarter. Its North American revenue grew sequentially by 30%, while the Asia-Pacific revenues grew by 35%. The Europe-Middle East-Africa revenue grew by 9%. However, the Latin American revenue declined by 6% due to the Venezuela foreign currency restrictions. The restrictions negatively impacted the service revenues by $72 million. It also negatively impacted the gross margin by 2%.

Research In Motion Ltd (NASDAQ:BBRY) reported that it shipped 6.8 million BlackBerry 10 smartphones, compared with 1 million in the previous quarter. The total of cash, cash equivalents, and short term and long term investments was $3.1 billion, compared with $2.9 billion at the end of the previous quarter, an increase of around $200 million.

Excluding the Venezuela foreign exchange restrictions, Research In Motion Ltd (NASDAQ:BBRY) would have approached a breakeven financial report. Besides, it recorded an improvement in revenue. All its areas of operations – except Latin America – showed growth.

Emerging solutions

BlackBerry also announced that it would continue to focus its efforts on promoting its emerging mobile computing platforms.

“Over the next three quarters, we will be increasing our investments to support the roll-out of the new products and services and to demonstrate that Research In Motion Ltd (NASDAQ:BBRY) has established itself as a leading and vibrant player in next generation mobile computing solutions for both consumer and enterprise customers,” said Thorsten Heins, the CEO of Blackberry.

There are other highlights of the company’s next plans. It will invest resources in the global roll-out of the BlackBerry 10 and evolve BlackBerry Messenger as well as launch other revenue initiatives associated with new services and emerging computing opportunities.