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Although Research in Motion has been getting creamed, the company does actually remain profitable.But even that may be dicey.
Jefferies analyst Peter Misek catches a bit of a bombshell in RIMM’s latest annual filing, which was released yesterday:
RIMM does not provide COGS by division on a quarterly basis but does so in its annual filing. We analysed the divisional margins via GAAP, non-GAAP, and adjusted non-GAAP.
We believe the most accurate metric is the latter, which excludes the restructuring, litigation, and goodwill impairment charges as one-time but includes the $752M in inventory write-offs as RIMM has written off inventory the last two quarters, it continues to sell the written-off inventory, and we believe another write-off is likely, especially in the Aug Q. Hardware GM went from 36% in FY10 to 36% in FY11 to 20% in FY12 GAAP, or 25% FY12 non-GAAP. Assigning opex based on revenues implies that Hardware OM went from 14% in FY10 to 15% in FY11 to -8% in FY12 GAAP, 3% non-GAAP, or -4% adjusted non-GAAP.