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The beleaguered BlackBerry smartphone manufacturer Research In MotionLtd. remains in dire strait as it reported highly disappointing first quarter of fiscal 2013 financial results, which were no where near the Zacks Consensus Estimates. The company’s future financial outlook looks grim and it continues to delay the launch of its much-hyped BlackBerry 10 software based handsets. We reiterate our Neutral recommendation on the stock due to its extremely low-level of current valuation.

For the first time since December 2003, the stock price of the company tumbled below $10 per share in June 5, 2012. So far, Research In Motion failed to provide any specific time frame when its free fall will ultimately end. Further, the company hired investment banks, JPMorgan Chase & Co. and RBC Capital Markets, to evaluate various strategic options including the sale of the company as management is unsure about its future prospects.

Research In Motion is facing severe problems from several fronts. The company is facing an ever increasing competitive landscape, a stagnant product portfolio, and an unfavorable product mix. The nightmare of Research In Motion continues ever since Apple Inc.’s (AAPL - Analyst Report) iPhone hit the market. The situation aggravated once Google Inc. launched its Android software and several handset manufacturers adopted that operating system.

We believe management has so far failed to do a proper research, which can place the company’s motion forward. We are still waiting for a game changing product (either software innovation or hardware innovation), which can turn the tide in favor of Research In Motion.

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