Research In Motion CEO Thorsten Heins commented this morning that "There's nothing wrong with the company as it exists right now." Peter Misek, Jefferies technology analyst, weighs in. "The momentum is bad, and it's certainly putting them into that dea...
By Roland Jones
Even as his company struggles to remain afloat in the face of fierce competition, Research In Motion?s Chief Executive Thorsten Heins is still sanguine about the future for the maker of BlackBerry smartphones.
Heins said Tuesday there is nothing wrong with the company as it exists now, denying the observations of analysts and experts, who have said the company is locked in a ?death spiral.?
He made his comments during a radio interview with Canadian Broadcasting. Heins said the Waterloo, Ontario-based company is facing very big challenges, but would emerge successfully from the transition it is going through.
Heins qualified his comments by saying he was not talking about the company he took over six months ago.
?I?m talking about the company [in the] state it?s in right now.?
Research in Motion, which revolutionized the mobile industry with the once-ubiquitous BlackBerry, is racing against time to launch a new line of smart phones while struggling to staunch a steady flow of red ink on its financial statements.
Analysts are doubtful that the one-time darling of Canada?s technology industry can shrink enough, however,?or become competitive enough, to fend off the stiff challenge it faces from Apple?s iPhone and Google?s Android software.
Jefferies analyst Peter Misek said Heins is walking ?a very fine line.?
On the one hand, he must maintain confidence among his employees, while on the other hand he needs to stave off any issues with cash flow, Misek told CNBC.
?It?s probably accurate that they?re not in a death spiral, but events are pushing them that way,? he said.
Research in Motion recently announced a steeper-than-expected quarterly operating loss and deep job cuts. The company also delayed the launch of its revamped BlackBerry 10 devices, saying their release has ?proven to be more time-consuming than anticipated.?
The delay of the BlackBerry 10 -- a make-or-break product for the company -- has sapped confidence in Research in Motion?s platform, Misek said.
In the radio interview, Heins denied the company?s future is in doubt because of the BlackBerry delay.
?This company is not ignoring the world out there, nor is it in a death spiral,? Heins said.
?Yes, it is very, very challenged at the moment -- specifically in the U.S. market. The way I would describe it: we?re in the middle of a transition,? he said. ?All that is in the making, it?s in the works. This company is in the middle of it and I?m positive we will emerge successfully from that transition.?
Research in Motion's mammoth challenges were confirmed by its recent loss, the first in eight years, and the likelihood that sales will keep sliding into 2013. The cutting of 5,000 jobs, or 30 percent of its work force, reinforced a widely held impression that the company could be in terminal decline.
The BlackBerry?s competitive advantage over other smartphones was its security capabilities, but Apple is getting much better at that, Misek said, presenting yet another challenge to Research in Motion.
?Apple is the horse to beat, and they really have the best ecosystem,? he said.
Reuters contributed to this report.
Click here to check Research in Motion?s share price.
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