Credit Suisse First Boston cuts estimates on Research In Motion (RIMM).
Analyst Tim Long says fourth quarter results came in at the low end of the company's guidance. He notes the favorable software/services mix drove 5% gross margin improvement -- offsetting the impact of falling average selling prices and rising deactivations. He cut his $450 million fiscal 2003 (Feb.) revenue estimate to to $375 million, and widened his $0.13 fiscal 2003 loss to a $0.45 loss to reflect further general packet radio service (GPRS) pushouts, as well as growing operating expenditures ahead of new customer wins. Long also notes that his new estimates model a 50% sales ramp into the second half of fiscal 2003, coinciding with his forecast for a more aggressive GPRS launches in the second and third quarters. He maintains his buy rating.