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Rallying RIM exceeds expectations on Wall Street

Beleaguered Research In Motion, riding a wave of positive vibes after showcasing its next-generation BlackBerry 10 operating system this week, earned a reprieve from investors despite posting another quarterly loss on Thursday.

RIM was in the red to the tune of $235 million (£145 million) for its second fiscal quarter, but that was less than the BlackBerry maker lost the previous quarter and below the figure predicted by sceptical financial analysts. The upshot for a company that has had mostly bad news to report in recent months is that its stock was rallying in after hours trading, according to reports.

The Canadian smartphone maker reported sales of $2.9 billion (£1.78 billion) in its recently concluded quarter, during which it shipped 7.4 million BlackBerrys—numbers that far outstripped analysts' estimations and sent RIM's shares surging by 21 per cent in after-hours trading, Reuters reported.

Though RIM has delayed the release of BB10 until the first quarter of 2013 after originally pegging this year for the debut of its QNX-based mobile OS, the company appears to have impressed enough people with the promise of the new software platform to earn back some confidence, while better-than-expected growth in overseas market has helped as well.

Still, RIM is literally betting the farm on BB10, which will initially be released on new touch-screen handsets early next year, with a version for phones with a physical keyboard coming later. It won't arrive in time for the vital holiday season, but CEO Thorsten Heins said at this week's BlackBerry Jam developers conference in San Jose, California that he expects BB10 to rapidly become the third-biggest smartphone platform when it is released.

The trouble there is that the two mobile operating systems higher up in the pecking order, Apple's iOS and Google's Android, are so dominant in the current market that being third isn't exactly a lofty goal. RIM can count on a solid installed base in the enterprise and, it seems, in developing countries as well, however.

RIM, having passed through an executive shakeup that saw Heins replace long-time co-CEOs Mike Lazaridis and Jim Balsillie in January, certainly isn't giving up the fight despite repeated calls for management to seek a buyer.

"We recognize the need for change. There is a new culture at RIM. There's a fighting spirit," Heins told the crowd of developers at BlackBerry Jam, promising that RIM remains "focused on the things that we do best, and that will never change, ever."