Research In Motion Ltd. (RIMM) to Restate Results
Maker of the oh-so-popular Blackberry, Research In Motion Ltd. (RIMM, 135.97), got the message out to investors Monday that it will restate its financial statements for fiscal 2004, 2005 and 2006 and the first quarter of 2007, following a review of stock options grants. RIMM expects to reduce the amount of previously reported GAAP earnings by an aggregate amount of about $250 mln.
While the company said its review did not find intentional misconduct on the part of any director, officer or employee responsible for the administration of the company's stock option grant program, it said it will implement changes to its board, audit committee, compensation committee and nominating committee.
It will also split its chairman and chief executive roles. Jim Balsillie, chairman and co-Chief Executive Officer, will step down from the role of chairman, and Chief Financial Officer, Dennis Kavelman, will become the company's Chief Operating Officer.
The company-led review of a stock option grants began in September. In December, the company said that for the fourth quarter it had expected earnings in a range of $0.92 to $0.99 per share on revenue between $900 mln and $940 mln. Analysts are anticipating a profit of $0.99 per share and revenue of $930.30 mln, according to Reuters Estimates.
In the past, we've noted the significant gains many tech sector stocks have seen since July, and warned investors should not try to chase heavy gainers. RIMM made a new high for the year in late January.
--Christine Marie Nielsen, Briefing.com
While the company said its review did not find intentional misconduct on the part of any director, officer or employee responsible for the administration of the company's stock option grant program, it said it will implement changes to its board, audit committee, compensation committee and nominating committee.
It will also split its chairman and chief executive roles. Jim Balsillie, chairman and co-Chief Executive Officer, will step down from the role of chairman, and Chief Financial Officer, Dennis Kavelman, will become the company's Chief Operating Officer.
The company-led review of a stock option grants began in September. In December, the company said that for the fourth quarter it had expected earnings in a range of $0.92 to $0.99 per share on revenue between $900 mln and $940 mln. Analysts are anticipating a profit of $0.99 per share and revenue of $930.30 mln, according to Reuters Estimates.
In the past, we've noted the significant gains many tech sector stocks have seen since July, and warned investors should not try to chase heavy gainers. RIMM made a new high for the year in late January.
--Christine Marie Nielsen, Briefing.com
Labels: Research in Motion Ltd., RIMM
posted by Stock Administrator @ 12:44 PM
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