BlackBerry maker cuts outlook

Research in Motion lowers sales, earnings view for third quarter due to weak U.S. economy.

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SAN FRANCISCO (AP) -- BlackBerry maker Research in Motion Ltd. on Tuesday lowered its forecast for its third-quarter revenue and earnings per share, citing the impact of the strong dollar and the weak U.S. economy.

The Waterloo, Ontario-based company said it now expects its adjusted earnings per share to be in a range between 81 cents and 83 cents for the quarter that ended Nov. 29. That's down from its initial forecast of between 89 cents and 97 cents per share.

Analysts had been expecting, on average, 91 cents per share, according to a survey by Thomson Reuters.

The lowered forecast was "primarily due to the lower-than-estimated revenue and the unfavorable impact of the strengthening U.S. dollar during the quarter," RIM said.

It said it now expects third-quarter revenue to be in a range between $2.75 billion and $2.78 billion, down from a previous range of $2.95 billion to $3.10 billion.

Analysts had expected revenue of $2.96 billion.

RIM said two-thirds of the difference in the revenue forecast was due to lower-than-estimated unit shipments of existing products, which it attributed to the weak U.S. economy and shifts in product launch dates within the quarter.

It said its gross margin for the quarter would be between 45 and 46%, which it described as lower than expected.

RIM said it expects the number of net new BlackBerry subscriber accounts added in the quarter to be about 2.6 million, lower than the 2.9 million forecast earlier.

But it cited strong customer response to its new BlackBerry phones launched in the current quarter and noted "strong momentum" in recent weeks.

"Initial sales of new products have been very positive ... however product launch timing, general economic conditions and foreign exchange volatility have tempered our results in the third quarter," said Jim Balsillie, the company's co-chief executive.

Earlier Tuesday, RIM's (RIMM) shares fell to their lowest levels since 2006 after a J.P. Morgan analyst cut his earnings forecasts due to the global economic crunch.

The stock fell $2.48, or 6.2 percent, to close at $37.32. Earlier, it went as low as $35.76. As late as June, the stock hit $148.13.

The company is due to report its third-quarter results on Dec. 18.

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