Research in Motion shares rise after 4Q report

NEW YORK (AP) — Shares of Research in Motion Ltd. jumped Friday after the maker of BlackBerry smartphones said it is returning its focus to business customers and shaking up its management.

The stock advanced 97 cents, or 7.1 percent, closing at $14.70, despite Thursday's disappointing fourth-quarter earnings report and announcement that RIM was withdrawing its financial guidance.

The Canadian company said its phones proved less popular with consumers than iPhone and Android smartphones from other makers than it hoped. RIM also announced the departures of former longtime co-CEO Jim Balsillie from its board and of David Yach, its chief technology officer for software, and Jim Rowan, its chief operating officer for global operations.

The company also said it is conducting a strategic review of its operations.

Research in Motion's revenue of $4.2 billion was about $300 million lower than Wall Street expected, according to FactSet. But its adjusted earnings of 80 cents per share came in just a penny below what analysts were expecting.

Analysts said Friday that in some ways the company's results were better than they could have been.

Sterne Agee analyst Shaw Wu said the weak revenue was "widely expected," while the company's profit, service revenue and sales of BlackBerry devices were better than some had feared. He said the service revenue was "surprisingly good."

JMP Securities analyst Alex Gauna said the company's quarterly results "were arguably better than worst-case fears" and it was a good thing the company is restructuring and setting more reasonable expectations.

"New management now appears more candid about the challenges it faces and more open to creative strategic options than we have seen in the past," Gauna wrote. However he said the company "desperately" needs to get BlackBerry 10 launched before the end of the year.

Wu rates RIM shares at "neutral."

Gauna has a "market underperform" rating on them.