RIM trounces expectations and shares rise

BlackBerry maker Research In Motion (RIMM) trounced Wall Street expectations with a profit of 90 cents a share, significantly higher than the 84 cents forecast by analysts. The company also posted revenue of $3.46 billion, slightly higher than estimates.

RIM has plenty going for it. It has millions of loyal subscribers and sales of "smart" phones are expected to climb this year, in sharp contrast to the outlook for the overall wireless industry. But the company faces some headwinds as well. Increased competition, a lagging stock price (although it has gained momentum in recent days) and concerns that its expansion into the consumer market could take a bite out of profits down the road.