Research In Motion on Tuesday warned that its likely to suffer an operating loss in the quarter while confirming continuing reductions to its workforce.
The BlackBerry maker also announced retaining bankers to assist with a strategic review of the company at a time when investors are increasingly losing patience.
In a statement, RIM CEO Thorsten Heins warned of challenging quarters ahead and cited "lower volumes and highly competitive pricing dynamics in the marketplace."
J.P. Morgan Securities LLC and RBC Capital Markets were hired, Heins said, "to evaluate the relative merits and feasibility of various financial strategies, including opportunities to leverage the BlackBerry platform through partnerships, licensing opportunities and strategic business model alternatives."
The Canadian company did not specify the number of job cuts, although RIM said it would hire in certain other areas. A report earlier this week estimated RIM will cut 12 percent of its workforce, or 2,000 jobs.
"While there will be significant spending reductions and headcount reductions in some areas throughout the remainder of the fiscal year, we will continue to spend and hire in key areas such as those associated with the launch of BlackBerry 10, and those tied to the growth of our application developer community," Heins said.
RIM's stock got beat up again, and analysts were alarmed. Shares opened Wednesday at $10.06, down from the previous day's close of $11.23 on the NASDAQ Global Select Market.
"This is a disaster," Jeffries & Co. analyst Peter Misek said in a Reuters story. "It's really bad. We did not expect an operating loss this quickly."
RIM reports its first quarter results on June 28 for the period ending June 2.