Newer mobile phones incorporate Blackberry software

Sales of the wireless e-mail device were countered by the cost of settling a lawsuit with NTP Inc.

A $450m (�233m) settlement came in March after a US appeals court upheld the case brought by NTP, owned by engineer John Campana.

RIM lost $2.6m in the quarter, against net income of $41.5m a year earlier.

After figures were adjusted to exclude a charge of $294.2m to resolve the NTP litigation, and a related tax asset write-up of $151.6m, net income in the quarter was $140.1m.

Revenues in the quarter rose to $404.8m from $210.6m for the Waterloo, Ontario-based firm.

The company now has more than two million customers worldwide, and its software is used in mobile phones and other devices.

The dispute with NTP started in 2002 when the US firm claimed RIM had infringed on a number of its patents, including its radio technology.

In Tuesday after-the-bell trading in New York, RIM saw its US-listed shares trading at $70.50 on the electronic Inet exchange from its Nasdaq close of $74.40.