BLACKBERRY MAKER MISSES TARGET, SHARES PLUMMET

Shares in BlackBerry maker Research In Motion plunged as much as 16 percent in after-hours trading yesterday after the company issued a softer-than-expected third-quarter profit forecast.

The company tempered analysts’ expectations for the three months ending in November in response to the slower-than-expected launches of the BlackBerry Bold and the BlackBerry Pearl Flip – its new rivals in the consumer market to the Apple iPhone. Those devices are now expected in the late third quarter or early fourth quarter.

RIM also said it is facing higher costs associated with the introduction of those gizmos.

The company, headed by co-CEOs Jim Balsillie and Mike Lazaridis, is calling for earnings of 89 cents to 97 cents per share on revenue in the range of $2.95 billion to $3.10 billion.

Analysts, anticipating the benefit of the new products, had been expecting a third-quarter profit of 99 cents on revenue of $2.9 billion, according to Bloomberg estimates.

The stock, which closed up 85 cents yesterday at $97.53, sank $15.90 to $81.63 after the market’s close in response to the news.

The forecast overshadowed a big bump in RIM’s second-quarter results. Revenue jumped 88 percent to $2.58 billion, while net income surged 72 percent to $495.5 million, or 86 cents per share.

RIM is also battling growing anxiety over its vulnerability to a troubled economy and mounting competition in the smart phone market from Apple and Google.

RIM shares are off over 31 percent over the last three months.