Earnings: Research In Motion Q2 Rises; Projects Better Second-Half But Not Good Enough

Research In Motion, the maker of the BlackBerry, which is seeing increased competition from rivals, such as iPhone and Google’s (NSDQ: GOOG) Android, reported Q2 earnings today and said it was projecting even stronger sales in the next period. Co-CEO Jim Balsillie: “Fiscal 2009 is proving to be an extraordinary year for RIM (NSDQ: RIMM) and its partners. We shipped over 11 million BlackBerry smartphones in the first half and we’re gearing up for an even stronger second half. Our enterprise business remains strong and our momentum in the consumer marketplace continues as we head into the holiday buying season with an amazing product portfolio and solid marketing support from partners.”

Still, going into the quarter, the concern and focus was directed toward expenses, which jump dramatically during the period. Perhaps that’s why the stock is down about 17 percent, or $17, to $80.60 a share in after-hours trading. Release. Earnings Call.

Financial highlights:

Revenues and profits: Q2 revenues for fiscal 2009 totaled $2.58 billion, up 15 percent from $2.24 billion in the previous quarter and up 88 percent from $1.37 billion in the same quarter of last year. Q2 profits were $495.5 million, or $0.86 per share diluted, compared with net income of $482.5 million, or $0.84 per share diluted, in the prior quarter and net income of $287.7 million, or $0.50 per share diluted, in the same quarter last year.

Blackberries sold: RIM shipped approximately 6.1 million devices, and about 2.6 million net new subscriber accounts were added in the quarter. At the end of the quarter, the subscriber accounts totaled 19 million.

Third-quarter outlook: Third-quarter revenues for the period ending Nov. 29, 2008 is expected to be as high as $3.10 billion. Net subscriber account additions in Q3 will be about 2.9 million. Earnings per share are expected to be as much as 97 cents a share on a diluted basis. Analysts polled by Thomson Reuters (NASDAQ: TRIN) had been expecting earnings of 98 cents per share, AP reports.

Expenses: Prior to the Q2 release, analysts highlighted concerns about expenses increasing with a number of new product launches on the block. And, they did jump quite signifcantly. In Q2, expenses, including research and development, selling, marketing and administration and amortization increased to $605 million, up from $491 million in Q1, and up from $311 million in the year ago period.