Montreal - BlackBerry maker Research in Motion said Thursday it lost $235m in the past quarter, in better-than-expected results that prompted a surge in its stock price.

In the quarter that ended September 1, the Canadian-based firm posted its third consecutive loss, although not as bad as analysts had forecast, as the company struggled to keep pace in the fast-changing smartphone market.

The loss translates to 27 cents a share excluding special items, which was not as bad as Wall Street estimates of a loss of 46 cents per share. RIM shares, which have slumped to multi-year lows, rallied some 18% in after-hours trade.

"Despite the significant changes we are implementing across the organisation, our second quarter results demonstrate that RIM is progressing on its financial and operational commitments during this major transition," said Thorsten Heins, president and chief executive of the Ontario-based firm.

Heins said the BlackBerry 10 platform, which aims to revamp the smartphone to compete with the likes of Apple's iPhone and Google-based Android devices, "is on track to launch in the first calendar quarter of 2013."

BlackBerry 10 had been set to launch in late 2012, but RIM announced a delay earlier this year that prompted grim predictions for the company.

RIM said revenues in the fiscal second quarter rose 2% from the prior quarter to $2.9bn, a figure some 31% lower than a year earlier.

RIM said it shipped 7.4 million BlackBerry smartphones in the period and 130 000 BlackBerry PlayBook tablets.

The company's global subscriber base rose to 80 million and the company's cash position edged up to $2.3bn.

"Carriers and developers are responding well to previews of our upcoming BlackBerry 10 platform," Heins said. "Make no mistake about it, we understand that we have much more work to do, but we are making the organisational changes to drive improvements across the company."

Still, RIM's statement warned "that there will be continued pressure on operating results for the remainder of the fiscal year based on the increasing competitive environment, lower handset volumes, increased marketing expense associated with the launch of BlackBerry 10."

The company is also planning a campaign "to aggressively drive sales of BlackBerry 7" before the launch of the BlackBerry 10 smartphones, which will mean an "operating loss" in the third quarter of fiscal 2013.

Industry analyst Jeff Kagan said RIM has fallen to third place in the smartphone market with around 10% market share, compared with more than 50% for Android and Apple's 34%, and needs a major overhaul to regain traction.

"Right now RIM is like our dear old Grandpa. We love him, we respect him, he was so important to us, but now he is just getting very old and everything is passing him by," Kagan said.

"BlackBerry 10 cannot be just another new product from the old company. This should be launched as a breakthrough product and a breakthrough remake of the company."

Analyst Colin Gillis at BGC Partners said it was positive to see RIM gain customers but that the challenge was to "increase subscribers while maintaining a level of pricing that allows for profitability."

While BlackBerry awaits the new platform, "there is still an ample room in the market in our view for RIM's current products if they were properly positioned" as entry-level devices and priced below $200, Gillis added.

benzion72: People tend to forget history so soon. Apple was indebted to tune of Billion Dollar and was bailed out by Microsoft. As long as there server still serving us ride on. Most Nigerian Banks are declaring losses FBN share I bought for 30 Naira is less than 15 Naira. It is world economic phenomenon. It is even better to declare losses than need bail out.

USarmy: I am very sure they are working very hard to develope a tool that can resurrect their failing product, i hope they do that before iPhone 5 starts having second hand use

Ijebulogic: The problem with companies like RIM is they are limited in their exposure and understanding of markets outside their comfort zone (i.e the USA). Previous posters say that Africa isnt a big enough market to sustain Blackberry? I completely disagree. RIM has simply not developed a good enough strategy for Nigeria (Yet)...So far they have (finally) announced the opening of a Lagos office, because only a blind man would deny the potential of Blackberry in Africa. Let me state my reasons.
1. Nigeria alone has 160million people with an impressive teledensity of almost 75%. If RIM acquires just 10% of that market, the impact on its sales will be phenomenal
2. The Blackberry appeal is "pinging", free real time comms, which creates a chain effect. i.e. I must have a BB to communicate with another BB (the alternative Apps have some limitations). So RIM have a power-product with a multiplier effect..the only need to dock it properly in Africa.
3. There is a massive opportunity to do more reserach &development in the area of creating Apps customised for the Nigerian/African market. Apps are big money and RIM have ignored their african fan base in this regard for too long.
4. Finally, anyone who believes that an African market can not sustain a global business should see the financial statements of MTN and even more incredible - Guinness. FYI - Nigeria is the single highest contributor to Guinness global sales figures...even higher than Ireland the home of Guinness. RIM need to do what Guinness did, make the blackberry the ultimate symbol of communication for the Nigerian consumer. My two cents.

KazaaUpload: Yes another quarter loss.
Basically, the only place the phone is selling now is in Africa and a few countries in Asia. On Tuesday a news story even said that Nigeria and South Africa are its main target markets now and that 50% of smartphones in Nigeria are Blackberry. While that is great news for Nigerians it isn't good news for RIM because these tend to be cheap handsets, pre-pay and not those locked into contracts like in developed world....to survive they need strong sales in the developed markets where profit margins are higher. Before the Naija BB fanboys jump on here saying with their love for BB, remember that These are hard facts, no matter how much you love your BlackBerry the simple fact is that the rest of the world doesn't any more.

In the USA, Blackberry market share is now 5%, with the iPhone in the lead followed by Samsung. Similar story in the UK and Europe. That is the reason why blackberry is in such a terrible position. Blackberry added 2million subscribers in the last 3 months. And most of those as I said were cheaper phones in developed world. Apple sold 5million iPhones in ONE WEEKEND! And even that was low because they ran into supply problems. Samsung Galaxy s3 alone sold 10 million in 3 months. So that shows you the struggles that RIM have

Long run they will be okay. In terms of Operating system Android and Apple will still lead, with Microsoft and RIM fighting for third place. But Blackberry will still dominate in poorer countries such as Nigeria due to pinging, and the data bundles available.

blink182: BB 10 I hope will change things for them

onatisi: even in ghana bb isnt common ,because there is no need for it ,mobile internet data is too cheap so why use a bb.the major reaon bb still sells in nigeris is due to the cheap internet acess it affords its users.ie in ghana here u get 250mb for just 4ghc a month on glo which is 400 naira but the last time i was home i was paying 500 for 50 mb on etisalat,that was when i thought it makes sense to buy a bb and use in nigeria than normal good smartphone.if the cost of mobile internet is reduced considerably in nigeria believe me ppl in naija will throw bb away and go for better mobile phones.nigerianslike to show off

Dondbuzor: Shut up there! Always quick to compare naija with ghana with fake info and statistics.
Airtel has 1g data for just N1400. And stop displaying ur ignorance in a public forum.

Dondbuzor: Shut up there! Always quick to compare naija with ghana with fake info and statistics.
Airtel has 1g data for just N1400. And stop displaying ur ignorance in a public forum.

O.michael.O:
you should stop showing yours!!! The guy is talking 'bout normal internet plan not blackberry plan...Thank God airtel in our lifes(i use it too),if not 1400 will only get you 250mb...and thats like the fairest normal internet plan for now....not the so called bb plan we are using...

ifecx4real: if i aint mistaken, i saw rim representatives in slot on monday, and also market survey was being done by their pr team, so i fink they are really looking @ nigerian market, plus news of dem opening ann office in nigeria by the end of next month.