Research In Motion Ltd on Tuesday warned it could report its second consecutive quarterly operating loss and said it had engaged bankers to help it review its business, the latest in a string of dismal messages from the once-dominant BlackBerry maker.
RIM shares, already down nearly 80% over the past 12 months, slumped nearly 13% in after-market trading, slithering to around $9.77 a share.
"We're looking at this as a salvage, value-type situation. The valuable assets in RIM are cash on the balance sheet, the recurring enterprise software revenue, and their patents," said Mark McKechnie, an analyst at ThinkEquity LLC.
"When I talk about RIM's valuation, I talk about $10 per share for the value of their patents."
RIM also said there would be significant headcount reductions in some areas, confirming recent reports of job cuts as RIM tries to reposition itself in a smartphone market where it now trails far behind rivals Apple and Google's Android.
RIM said it had hired the bankers, from JP Morgan and Royal Bank of Canada, after releasing its year-end results in late March to aid its strategic review.
RIM has asked the banks to evaluate the merits of various strategies, including a business model overhaul or less dramatic moves such as expanding the BlackBerry platform through partnerships and licensing deals.
"These advisors have been tasked to help us with the strategic review we referenced on our year-end financial results conference call and to evaluate the relative merits and feasibility of various financial strategies," CEO Thorsten Heins said in a statement.