WSJ Live Blog: Blackberry Maker RIM’s Earnings Call

Just when RIM watchers thought it couldn't get any worse, the company announces today that its next line of phones won't be launched until after the holiday season, in the first quarter 2013.

This is potentially devastating news for RIM, which has pinned much of its turnaround hopes on a successful launch of the phones, called BlackBerry 10.

RIM's stock plummets 17% in minutes after RIM's announcement, sending its market capitalization to under $4 billion. 

What a difference a year makes -- the stock is down about 73% in the past 12 months, from a market cap of about

In its statement, RIM also gave a bit more clarity into how it plans to cut costs.

It'll be laying off around 5,000 staff by the end of next year, shutting 7 of 10 manufacturing sites and outsourcing some repair operations.

During the call, investors will be looking for answers on how RIM missed yet another product launch.

The delay of the new BlackBerry fits in with RIM's (failed) strategy: The longer you wait, the better it has to be. (See our story on what led to RIM's fall here.)

RIM has a history of missing deadlines. New CEO Thorsten Heins said he was committing to preventing this kind of thing when he took over in January.

Here's CEO Heins explanation for the delay in the release (emphasis ours):

“Over the past several weeks, RIM's software development teams have made major progress in the development of key features for the BlackBerry 10 platform; the integration of these features and the associated large volume of code into the platform has proven to be more time consuming than anticipated…. RIM's development teams are relentlessly focused on ensuring the quality and reliability of the platform and I will not compromise the product by delivering it before it is ready. I am confident that the first BlackBerry 10 smartphones will provide a ground-breaking next generation smartphone user experience."

You know things are bad when a company leads off its "highlights" in an earnings press release with the fact that its cash position went up. (It's now at about $2.2 billion, more than half the worth of the company.)

The call is beginning. RIM's investor relations chief going over disclaimers now.

Other key items investors will be looking to hear details on during the call: is RIM more seriously considering a sale? A breakup of the company? Licensing deals with other smartphone makers?

On deck: CEO Thorsten Heins.

Heins: "I’m not satisfied. I want to show you we’re not standing still.”

Heins says revenue overseas has declined. This is important. In the last few years BlackBerry sales abroad were very strong.

Heins says delay in BB10 launch  is "not due to quality," but due to difficulties in integration. Earlier schedule they had "is no longer realistic."

Heins says carriers will actually prefer a 2013 launch because faster networks will be ready then.

(That's one way to spin it. You can't say Heins isn't optimistic.)

Heins says developers are excited about the prototype BB10 phones they've been given, without giving any specifics.

I hope it's not the prototype that Heins debuted earlier this year that looked exactly like an iPhone.

On layoffs, Heins says: "I understand this is an incredibly difficult message to deliver, but it is necessary."

RIM laid off 2,000 employees last summer. Analysts weren't expecting such a big cut this time around.

As one RIM employee told Will in his WSJ story earlier this month:

"Anyone working on [the new operating system] is safe. Anyone working on legacy projects is preparing their resumes. I don't know anyone that isn't going to take a buyout if they offer one."

Heins is now talking about some of the executive changes taking place, including a new chief operating officer and new chief marketing officer hired earlier this year, both "industry veterans.

This is something investors will actually cheer:

Heins says RIM will streamline its product portfolio and offer fewer devices.

It appears Heins is more actively pursuing a plan originally hatched by his predecessor, former CEO Jim Balsillie.

He says the company is actively seeking licensing partnerships, and is in "intensive discussions" to license RIM offerings, such as BlackBerry Messenger.

RIM CFO Brian Bidulka now on the line. He's just reading the earnings statement.

CFO Bidulka reiterates the company's plans to offer fewer BlackBerry models.

A frequent complaint in the market has been the dizzying number of models on offer (unlike, say, Apple, which offers just one iPhone).

Not surprisingly, CFO Bidulka says RIM expects another operating less in the coming quarter.

The Q&A portion of the call now starting. This should be interesting.

RBC analysts asks: "How do you bridge the gap between now and then?" [referring to the BlackBerry 10 delay]

In response, Heins says many BlackBerry users are still on now-ancient BlackBerry 5 and 6 models, so he'll be looking to upgrade users to BlackBerry 7 phones (which were launched last year).

Next analyst asks the question most listeners are probably waiting for: How extreme a scenario are you prepared to consider? Is a break up of the company in the cards?

Heins dodges the question: "Now is not the time to share any detail."

Then he adds, "It will be the board deciding what strategic direction they want to take the company."

Forrester Research analyst Charles Golvin sends an email with some quick thoughts: “The window for BlackBerry to remain a platform with viable growth potential is closing, and this development illustrates the pace at which it is closing. In the upcoming period before the BlackBerry 10 launch we expect a new iPhone, more Android devices running Google's latest version, and a massive push from Microsoft behind all the next versions of Windows. For the first BlackBerry 10 device to win the attention of customers and developer at its new launch date it will have to prove itself better than the alternatives by leaps and bounds — the likelihood of that is very, very low.”

Back to BlackBerry 10, Heins says will be a "fully open platform."

Heins dismisses becoming another Android player: "We are not trying to be one of many. We’re trying to be different.”

Heins keeps referring to "BlackBerry people" as existing, core customers. Skeptics would say the longer they delay in introducting a new phone, the fewer BlackBerry people there'll be.

Analyst asks another key question: What's the value in RIM's patents? (Among the most valuable are its patents around security.)

And Heins dodges it again, says: "Given the activity in this sector, I'm not in a position to give detailed information here."

But says company in "a good position" on patents.

And that's a wrap. Another disappointing quarter closes for RIM. Now we'll see if the stock continues to tank tomorrow and whether its strategic partnership talks bear any fruit in the near future.