(Associated Press via NewsEdge) Shares of Research in Motion (RIM) soared after the maker of the Blackberry handheld device reported preliminary results for its fiscal second quarter and a third-quarter outlook that were above Wall Street's expectations.
The Canadian company's stock surged 19% to $102.50 in pre-market trading, a price that will be well above its previous 52-week high of $90.53 if it holds during regular trading on the Nasdaq Stock Market.
RIM was scheduled to release its complete second-quarter results after financial markets closed, but delayed the report because it is reviewing past stock options grants.
Still, investors were pleased with the numbers it did release.
RIM said second-quarter net income totaled $140.8 million above the average estimate of Wall Street analysts surveyed by Thomson Financial.
Revenue was $658.5 million, up 34% from the year-ago period and also above expectations.
The company said an internal investigation has determined it will need to restate past earnings to correct accounting errors that reduced options reported expenses by $25 million to $45 million from 1998 to the present. RIM said it does not believe the review will result in 'a material adjustment to current or future fiscal years' operating results, including the preliminary Q2 operating results reported today.'
Its audit committee on the board of directors 'is completing a management-initiated, voluntary review of RIM's historical option granting practices,' RIM said in a statement, saying it decided to be 'proactive' due to the 'heightened public awareness and concern regarding stock option grant practices.'
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