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Research In Motion on Tuesday warned it could report its second consecutive quarterly operating loss and said it had engaged bankers to help it review its business, the latest in a string of dismal messages from the once-dominant BlackBerry maker.
After being halted briefly, RIM shares fell sharply in after-hours trading. The stock, already down nearly 80 percent over the past 12 months, fell more than 10 percent after-hours to below $10 a share. (Click here for the latest quote).
"That is a disaster. It's really bad. We did not expect an operating loss this quickly," said Peter Misek, an analyst at Jefferies.
Mark McKechnie, an analyst at ThinkEquity, put RIM's value at "about $10 per share" — for the value of its patents.
RIM, which virtually invented the concept of on-your-hip email with its first BlackBerry devices, is due to release its first-quarter results on June 28.
Analysts had expected RIM to earn 42 cents a share on revenue of $3.64 billion in the quarter, according to analyst views collated by Thomson Reuters.
RIM also said there would be significant headcount reductions in some areas, confirming recent reports of job cuts as RIM tries to reposition itself in a smartphone market where it now trails far behind rivals Apple and Google's Android .
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