RIM's earnings are out and they looked solid at first glance. But investors appear worried about the possibility of cuts in the lucrative service fees the smartphone maker earns from its messaging services.
The stock rose 6% after hours, but now it's dropped 10%.
It did $2.73 billion in sales a 47% year over year drop, but it beats expectations of $2.66 billion.
It had an adjusted EPS loss of $0.22, which is better than the $0.36 loss that was expected.
RIM's gross margin was 30.4%, which beats expectations of 28.1%.
It shipped 6.9 million BlackBerrys and 255,000 Playbook tablets.
In the release, RIM says its CIO is going to retire.
It warns that it plans to bump marketing for the BlackBerry 10 operating system which comes out during the next quarter. It also warns that sales of the BlackBerry 7-based phones could decline as users opt for BlackBerry 10 phones, and that it could cut service fees to retain and attract customers.
Beta trials of the BlackBerry 10 are underway in enterprises right now.
RIM has $2.9 billion in cash, which is up $600 million.
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