RIM Posts Loss; Settles Patent Dispute With Nokia
Research In Motion reported a smaller-than-expected quarterly loss on Thursday and recorded a decline in its subscriber base. Seperately, the company settled a legal dispute with rival Nokia related to Wi-fi patents.
RIM reported a loss of $114 million or 22 cents a share, excluding one-time items.
RIM also built its cash cushion up to $2.9 billion in the quarter, from $2.3 billion in the prior period. RIM will need the funds to manufacture and promote its new line of products ahead of the January 30 launch.
RIM also said its subscriber base fell to about 79 million in the quarter from about 80 million in the period ended September 1.
The company said it shipped 6.9 million smartphones in the quarter.
Seperately, Nokia and Research In Motion have agreed on a new patent licensing pact which will end all existing litigation between the two struggling companies, the Nokia said Friday.
The financial structure of the agreement includes a one-time payment and on-going payments, all from RIM to Nokia. The specific terms of the agreement are confidential.
In November, Nokia asked a California court to enforce an arbitration award that could have prevented RIM from selling products with wireless LAN capabilities until the companies agreed on patent royalty rates.
"We are very pleased to have resolved our patent licensing issues with RIM and reached this new agreement, while maintaining Nokia's ability to protect our unique product differentiation," said Paul Melin, chief intellectual property officer at Nokia. "This agreement demonstrates Nokia's industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market."
RIM also built its cash cushion up to $2.9 billion in the quarter, from $2.3 billion in the prior period. RIM will need the funds to manufacture and promote its new line of products ahead of the January 30 launch.
RIM also said its subscriber base fell to about 79 million in the quarter from about 80 million in the period ended September 1.
The company said it shipped 6.9 million smartphones in the quarter.
Seperately, Nokia and Research In Motion have agreed on a new patent licensing pact which will end all existing litigation between the two struggling companies, the Nokia said Friday.
The financial structure of the agreement includes a one-time payment and on-going payments, all from RIM to Nokia. The specific terms of the agreement are confidential.
In November, Nokia asked a California court to enforce an arbitration award that could have prevented RIM from selling products with wireless LAN capabilities until the companies agreed on patent royalty rates.
"We are very pleased to have resolved our patent licensing issues with RIM and reached this new agreement, while maintaining Nokia's ability to protect our unique product differentiation," said Paul Melin, chief intellectual property officer at Nokia. "This agreement demonstrates Nokia's industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market."
