Research In Motion Trades Off; FY Q1 EPS Beats, But Revs Miss; Sees 2 Major Launches This Qtr (Updated)

Research In Motion (RIMM) shares are trading lower after hours on a mixed report for its fiscal first quarter ended May 29.

For the quarter, RIMM reported revenue of $4.24 billion, just below the low end of the guidance range of $4.25 billion and $4.45 billion, and below the Street consensus at $4.35 billion. Profits of $1.38 a share, on the other hand, were at the top of the guidance range of $1.31 to $1.348 a share, and above the Street at $1.34.

The company shipped 11.2 million smart phones in the quarter, and added 4.9 million net new subscriber accounts, boosting the total to 46 million. The company came in at the low of the guidance ranges on both measures: the company had expected to sell 11.2 million to 11.8 million phones, and it had expected to add 4.9 million to 5.2 million net new customers.

Gross margin in the quarter was 45.4%, down from 45.7% in the February quarter, but up from 43.6% a year ago.

For Q2, the company expects revenue of $4.4 billion to $4.6 billion, in line with the Street consensus of $4.5 billion; the company sees profits for the quarter of $1.33 to $1.40 a share, above the Street at $1.31. The company expects gross margin in the quarter to be 44%.

The company also said it plans repurchase “for cancellation” up to 31 million common shares over the next 12 months; the company bought back 18.2 million shares over the past 12 months.

RIMM finished the quarter with $3.27 billion in cash and equivalents, up about $400 million from the previous quarter.

RIMM in late trading is down $2.33, or 4%, to $56.26.

Update: On a conference call with analysts this afternoon, CEO Jim Balsillie told investors on a post-earnings conference call this afternoon that the company expects to ship between 11.6 million and 12.1 million units in Q2, with 4.9 million to 5.2 million net subscriber additions. He noted that the company expects 2 significant product launches in the current quarter – and added that the devices will have higher-than-average ASPs. He also said BlackBerry 6 software will be available before the end of September. ASP in the quarter is expected to be flat or slightly higher sequentially.