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Research In Motion Reports Fourth Quarter and Year-End Results for Fiscal 2008 WATERLOO, ONTARIO--(MARKET WIRE)--Apr 2, 2008 -- Research In Motion Limited (RIM) (NasdaqGS:RIMM - News)(Toronto:RIM.TO - News),
a world leader in the mobile communications market, today
reported results for the three months and fiscal year ended
March 1, 2008 (all figures in U.S. dollars and U.S. GAAP).
Revenue for the fourth quarter of fiscal 2008 was $1.88 billion, up 102% from $930.4 million in the same quarter of last year. The revenue breakdown for the quarter was approximately 81% for handhelds, 14% for service, 3% for software and 2% for other revenue. Revenue for the fiscal year ended March 1, 2008 was $6.01 billion, up 98% from $3.04 billion last year. RIM shipped 4.4 million smartphones in the fourth quarter and approximately 14 million smartphones during fiscal 2008. Approximately 2.18 million net new BlackBerry® subscriber accounts were added in the quarter. At the end of the quarter, the total BlackBerry subscriber account base was over 14 million. "We are pleased to report another year of very strong growth with shipments of approximately 14 million BlackBerry smartphones and total revenue of $6 billion. Heightened retail activities helped drive exceptional subscriber growth during the fourth quarter with net subscriber account additions growing more than 32% over the previous quarter and well over 2 million net subscriber accounts added in a single quarter for the first time," said Jim Balsillie, Co-CEO at Research In Motion. "Looking forward, the prospects for RIM and the industry are more exciting than ever and we will continue to work closely with a thriving ecosystem of partners to build on our momentum during the year ahead." Net Income for the quarter was $412.5 million, or $0.72 per share diluted, compared with net income of $370.5 million, or $0.65 per share diluted, in the prior quarter and net income of $187.4 million, or $0.33 per share diluted, in the same quarter last year. For the fiscal year 2008, net income was $1.29 billion, or $2.26 per share diluted, up 105% over fiscal 2007. Revenue for the first quarter of fiscal 2009 ending May 31, 2008 is expected to be in the range of $2.23-$2.30 billion. Net subscriber account additions in the first quarter are expected to be approximately 2.2 million. Earnings per share for the first quarter are expected to be in the range of $0.82-$0.86 per share diluted. The total of cash, cash equivalents, short-term investments and long-term investments was $2.34 billion as at March 1, 2008, compared to $2.13 billion at the end of the previous quarter, an increase of $211 million over the prior quarter. Uses of cash in the quarter included capital expenditures of $110 million and the acquisition of intangible assets of $310 million. The replay of the company's Q4 conference call can be accessed after 7 p.m. (eastern), April 2, 2008 until midnight (eastern), April 16, 2008. It can be accessed by dialing 416-640-1917 and entering passcode 21221696#. The conference call will also appear on the RIM web site, live at 5:00 pm (eastern) and archived at http://www.rim.com/investors/events/index.shtml until midnight April 16, 2008. About Research In Motion (RIM) Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity. RIM's portfolio of award-winning products, services and embedded technologies are used by thousands of organizations around the world and include the BlackBerry® wireless platform, the RIM Wireless Handheld(TM) product line, software development tools, radio-modems and software/hardware licensing agreements. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe and Asia Pacific. RIM is listed on the Nasdaq Stock Market (NasdaqGS:RIMM - News) and the Toronto Stock Exchange (Toronto:RIM.TO - News). For more information, visit www.rim.com or www.blackberry.com. This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to RIM's revenue and earnings expectations for the first quarter of fiscal 2009 and anticipated growth in subscribers. The terms and phrases, "looking forward", "belief", "will", "continue", "expected", "forecast", "plans" and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by RIM in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that RIM believes are appropriate in the circumstances including but not limited to general economic conditions, product pricing levels and competitive intensity, supply constraints and new product introductions. Many factors could cause RIM's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks relating to the restatement of RIM's previously filed financial statements as a result of the internal review of RIM's historical option granting practices, and regulatory investigations and litigation relating to those matters, including possible sanctions or penalties against the Company or its directors or officers; risks relating to RIM's intellectual property rights; risks relating to the efficient and uninterrupted operation of RIM's network operations center; restrictions on import and/or use of RIM's products in certain countries due to encryption of the products; RIM's ability to enhance current products and develop new products and services; RIM's reliance on carrier partners, third-party manufacturers, third-party network developers and suppliers; and intense competition. These risk factors and others relating to RIM are discussed in greater detail in the "Risk Factors" section of RIM's Annual Information Form, which is included in its Annual Report on Form 40-F and RIM's MD&A (copies of which filings may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on RIM's forward-looking statements. RIM has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited. RIM, Research In Motion and BlackBerry are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners.
Research In Motion Limited
Incorporated under the Laws of Ontario
(United States dollars, in thousands except per share data)
Consolidated Statements of Operations
For the three months ended For the year ended
----------------------------------- ------------------------
March 1, December 1, March 3, March 1, March 3,
2008 2007 2007 2008 2007
----------------------------------------------------------------------------
Revenue $ 1,882,705 $ 1,672,529 $ 930,393 $ 6,009,395 $ 3,037,103
Cost of sales 914,483 824,657 433,035 2,928,814 1,379,301
----------------------------------- ------------------------
Gross margin 968,222 847,872 497,358 3,080,581 1,657,802
----------------------------------- ------------------------
Gross margin % 51.4% 50.7% 53.5% 51.3% 54.6%
Expenses
Research and
development 104,573 92,150 67,321 359,828 236,173
Selling,
marketing and
administration 267,881 238,175 167,112 881,482 537,922
Amortization 31,314 27,653 22,021 108,112 76,879
----------------------------------- ------------------------
403,768 357,978 256,454 1,349,422 850,974
----------------------------------- ------------------------
Income from
operations 564,454 489,894 240,904 1,731,159 806,828
Investment
income 20,114 23,816 14,794 79,361 52,117
----------------------------------- ------------------------
Income before
income taxes 584,568 513,710 255,698 1,810,520 858,945
----------------------------------- ------------------------
Provision for
(recovery of)
income taxes
Current 178,579 141,457 33,232 587,845 123,553
Deferred (6,512) 1,792 35,082 (71,192) 103,820
----------------------------------- ------------------------
172,067 143,249 68,314 516,653 227,373
----------------------------------- ------------------------
Net income $ 412,501 $ 370,461 $ 187,384 $ 1,293,867 $ 631,572
----------------------------------- ------------------------
----------------------------------- ------------------------
Earnings per
share
Basic $ 0.73 $ 0.66 $ 0.34 $ 2.31 $ 1.14
----------------------------------- ------------------------
----------------------------------- ------------------------
Diluted $ 0.72 $ 0.65 $ 0.33 $ 2.26 $ 1.10
----------------------------------- ------------------------
----------------------------------- ------------------------
Weighted average
number of
common shares
outstanding
(000's)
Basic 561,837 560,400 557,223 559,778 556,059
Diluted 573,851 573,700 570,759 572,830 571,809
Total common
shares
outstanding
(000's) 562,652 561,003 557,613 562,652 557,613
Research In Motion Limited
Incorporated under the Laws of Ontario
(United States dollars, in thousands)
Consolidated Balance Sheets
As at March 1, 2008 March 3, 2007
----------------------------------------------------------------------------
Assets
Current
Cash and cash equivalents $ 1,184,398 $ 677,144
Short-term investments 420,709 310,082
Trade receivables 1,174,692 572,637
Other receivables 74,689 40,174
Inventory 396,267 255,907
Other current assets 135,849 41,697
Deferred income tax asset 90,750 21,624
----------------------------------
3,477,354 1,919,265
Long-term investments 738,889 425,652
Capital assets 705,955 487,579
Intangible assets 469,988 138,182
Goodwill 114,455 109,932
Deferred income tax asset 4,546 8,339
----------------------------------
$ 5,511,187 $ 3,088,949
----------------------------------
----------------------------------
Liabilities
Current
Accounts payable $ 271,076 $ 130,270
Accrued liabilities 690,442 287,629
Income taxes payable 475,328 99,958
Deferred revenue 37,236 28,447
Current portion of long-term debt 349 271
----------------------------------
1,474,431 546,575
Long-term debt 7,259 6,342
Deferred income tax liability 65,058 52,532
Income taxes payable 30,873 -
----------------------------------
1,577,621 605,449
----------------------------------
Shareholders' Equity
Capital stock 2,169,856 2,099,696
Retained earnings 1,653,094 359,227
Paid-in capital 80,333 36,093
Accumulated other comprehensive
income (loss) 30,283 (11,516)
----------------------------------
3,933,566 2,483,500
----------------------------------
$ 5,511,187 $ 3,088,949
----------------------------------
----------------------------------
Research In Motion Limited
Incorporated under the Laws of Ontario
(United States dollars, in thousands)
Consolidated Statements of Cash Flows
For the three
months ended For the year ended
March 1, 2008 March 1, 2008
----------------------------------------------------------------------------
Cash flows from operating activities
Net income $ 412,501 $ 1,293,867
Items not requiring an outlay of cash:
Amortization 50,512 177,366
Deferred income taxes (6,657) (67,244)
Income taxes payable 588 4,973
Share-based compensation 10,300 33,700
Other 1,890 3,303
Net changes in working capital items 146,639 130,794
----------------------------------
Net cash provided by operating activities 615,773 1,576,759
----------------------------------
Cash flows from financing activities
Issuance of share capital 16,438 62,889
Other paid-in capital - 9,626
Excess tax benefits from stock-based
compensation (173) 8,185
Repayment of long-term debt (81) (302)
----------------------------------
Net cash provided by financing activities 16,184 80,398
----------------------------------
Cash flows from investing activities
Acquisition of long-term investments (397,838) (757,656)
Proceeds on sale or maturity of
long-term investments 159,196 260,393
Acquisition of capital assets (109,644) (351,914)
Acquisition of intangible assets (309,644) (374,128)
Business acquisition - (6,200)
Acquisition of short-term investments (199,958) (1,249,919)
Proceeds on sale or maturity of
short-term investments 216,300 1,325,487
----------------------------------
Net cash used in investing activities (641,588) (1,153,937)
----------------------------------
Effect of foreign exchange gain on
cash and cash equivalents 4,034 4,034
----------------------------------
Net (decrease) increase in cash and
cash equivalents for the period (5,597) 507,254
Cash and cash equivalents, beginning
of period 1,189,995 677,144
----------------------------------
Cash and cash equivalents, end of period $ 1,184,398 $ 1,184,398
----------------------------------
----------------------------------
As at March 1, 2008 December 1, 2007
----------------------------------------------------------------------------
Cash and cash equivalents $ 1,184,398 $ 1,189,995
Short-term investments 420,709 407,173
Long-term investments 738,889 536,127
----------------------------------
$ 2,343,996 $ 2,133,295
----------------------------------
----------------------------------Contact: Contacts:
Media Contact:
Brodeur (PR Agency for RIM)
Marisa Conway
(212) 515-1924
Email: mconway@brodeur.com
Investor Contact:
RIM Investor Relations
(519) 888-7465
Email: investor_relations@rim.com
Source: Research In Motion
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