09/28/2012 11:49 EDT | Updated 11/28/2012 05:12 EST

RIM shares gain 13% after quarterly results surprise

Research In Motion shares gained almost 13 per cent on the Toronto Stock Exchange Friday, a day after the smartphone maker posted better than expected quarterly results.

Shares rose 89 cents to $7.85 on the TSX in late-morning trading. The Waterloo, Ont.,-based technology company said its quarterly loss was $235 million or 45 cents per diluted share compared with a profit of $329 million or 63 cents per share a year ago.

RIM's adjusted loss was $142 million or 27 cents per share. That was narrower than the 47 cents per share that analysts were expecting. The company's revenue, cash flow and subscriber base all increased.

Much of the optimism came from adjusted earnings per share, which filter out one-time costs like expenses related to job reductions and cost cuts.

BMO Capital Markets analyst Tim Long remained muted on the company's prospects, noting the company won't have any new products to sell in the key holiday shopping season.

"The future of RIM depends on the success of new BB10 devices, which should start shipping in early 2013," Long said in a research note.

"At this time, we have not seen enough of BB10 to change our view that the new operating system will not be enough to reverse the dramatic smartphone market share losses," added Long, who maintained his market perform rating.