RIM cuts forecasts for third time this year

Research In Motion slashed its revenue and earnings forecasts for the third time this year as it reported a narrower fiscal second-quarter loss.

The maker of Blackberry e-mail devices dropped its full-year revenue guidance to between $300 million and $315 million. Previous guidance was between $350 million and $375 million. Analysts said the projected shortfall comes from customers putting off purchases until RIM introduces a next-generation dual-band device.

JP Morgan cut its fiscal year 2003 estimates for RIM, lowering its outlook to a loss of 55 cents per share on revenue of $305.7 million, from its previous forecast of a loss of 41 cents. UBS Warburg also cut its fiscal year 2003 outlook to a loss of 63 cents per share from a loss of 57 cents per share.

“The success or failure of the RIM story will continue to rest on demand in the end market,” wrote UBS Warburg analyst Jeffrey Schlesinger in a research note. “We still view the Blackberry solution as the best of bread. However, how big this market actually is and whether or not new Blackberry products will stimulate demand, remains to be seen.”