Waterloo, October 5th ON - Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM), a world leader in the mobile communications market, today reported second quarter results for the three months ended September 1, 2007 (all figures in U.S. dollars and U.S. GAAP).
Revenue for the second quarter of fiscal 2008 was $1.37 billion, up 27% from $1.08 billion in the previous quarter and up 108% from $658.5 million in the same quarter of last year. The revenue breakdown for the quarter was approximately 78% for devices, 15% for service, 4% for software and 3% for other revenue. Approximately 1.45 million BlackBerry® subscriber accounts were added in the quarter and over 3 million devices were shipped. The total BlackBerry subscriber account base at the end of the second quarter was approximately 10.5 million.
"RIM's second quarter results were exceptionally strong on all metrics including revenue, subscriber account additions and net income," said Jim Balsillie, Co-CEO at RIM. "This growth is fueled by the depth of the BlackBerry product portfolio and the continued diversification of our business across market segments and geographies. With over ten million BlackBerry subscriber accounts and over twenty million handsets shipped, we are pleased with our position in the market today and we expect recent product and market initiatives to extend our business momentum through the remainder of the fiscal year."
Income for the quarter was $287.7 million, or $0.50 per share diluted, compared with net income of $223.2 million, or $0.39 per share diluted, in the prior quarter and net income of $140.2 million, or $0.25 per share diluted, in the same quarter last year. Please note that the earnings per share reflect the effective 3-for-1 stock split that was implemented in the quarter.
Revenue for the third quarter of fiscal 2008 ending December 1, 2007 is expected to be in the range of $1.60-1.67 billion. Subscriber account additions in the third quarter are expected to be approximately 1.65 million. Earnings per share for the third quarter are expected to be in the range of $0.59-0.63 per share diluted.
The total of cash, cash equivalents, short-term and long-term investments was $1.73 billion as at September 1, 2007, compared to $1.56 billion at the end of the previous quarter, an increase of $166 million over the prior quarter. Uses of cash in the quarter included capital expenditures of approximately $79 million.
Highlights of the Second Quarter Include:
* Sprint and Alltel launched the BlackBerry 8830 World Edition in the U.S.
* Bell Mobility and TELUS launched the BlackBerry 8830 World Edition in Canada.
* Telefónica launched the BlackBerry Curve in Argentina, Brazil, Ecuador and Chile as well as the BlackBerry Pearl in Mexico.
* Telcel launched the BlackBerry Curve and the red BlackBerry Pearl in Mexico.
* TIM launched the BlackBerry 8800 in Brazil.
* Entel PCS launched the BlackBerry 8800 and the BlackBerry Curve in Chile.
* The Carphone Warehouse launched the BlackBerry Pearl, the BlackBerry Curve and the BlackBerry 8800 in the UK.
* Vodafone launched the BlackBerry Curve 8310 in the UK, Germany, Portugal, Croatia, Slovenia and The Netherlands.
* O2 launched the BlackBerry Curve in the UK and Ireland.
* Orange launched the BlackBerry 8820 in the UK, Switzerland, Belgium, Poland, Romania, Slovakia and Spain.
* SFR launched the BlackBerry 8820 and the BlackBerry Curve 8310 in France.
* mobilkom launched the BlackBerry Curve 8310 in Austria.
* Swisscom launched the BlackBerry Curve 8310 in Switzerland.
* TIM Italy launched the BlackBerry Curve and the red BlackBerry Pearl in Italy.
* TMN launched the BlackBerry Curve in Portugal.
* Vodafone launched the BlackBerry Pearl and the BlackBerry 8800 in Turkey.
* Avea launched the BlackBerry Curve and the BlackBerry 8820 in Turkey.
* Turkcell launched the BlackBerry Curve in Turkey.
* Vodafone launched the BlackBerry Pearl in Egypt.
* DoCoMo launched Japanese text input support for the BlackBerry 8707h and BlackBerry Enterprise Server.
* 3Hong Kong launched the BlackBerry Curve, the BlackBerry 8820 and the red BlackBerry Pearl in Hong Kong.
* SmarTone-Vodafone launched the BlackBerry Curve 8310, the BlackBerry 8820 and the red BlackBerry Pearl in Hong Kong.
* Peoples, PCCW and CSL launched the BlackBerry Curve in Hong Kong.
* Bharti launched the BlackBerry Curve and the BlackBerry 8820 in India.
* Vodafone Essar launched the BlackBerry Curve 8310 and the BlackBerry 8820 in India.
* Optus launched the BlackBerry Curve in Australia.
* Vodafone launched the BlackBerry Curve 8310 in Australia.
* M1 launched the BlackBerry Curve in Singapore.
* SingTel and StarHub launched the BlackBerry Curve and the BlackBerry 8820 in Singapore.
* BlackBerry ISV Alliance members continued to build upon the BlackBerry platform with a range of new products and services that help customers extend their wireless data strategies beyond wireless email.
* BlackBerry smartphones are now available around the world from over 300 carriers.
Highlights Subsequent to Quarter End Include:
* The BlackBerry Enterprise Solution achieved Common Criteria Certification.
* RIM introduced the BlackBerry Pearl 8130.
* RIM and Telefónica introduced the BlackBerry Pearl 8120 and BlackBerry Unite! software.
* AT&T launched the BlackBerry 8820 in the U.S.
* T-Mobile launched three new BlackBerry Pearl colors and the BlackBerry Curve 8320 in the U.S.
* Rogers launched the BlackBerry Curve 8310 in Canada.
* TIM Brazil announced the BlackBerry 8310 in Brazil.
* Proximus launched the BlackBerry Curve 8310 and the BlackBerry Pearl in Belgium.
* BASE launched the BlackBerry Curve in Belgium.
* Vodafone launched the BlackBerry Curve 8310 in Italy and Spain.
* O2 launched the BlackBerry Curve in Germany.
* MTS and Alcatel-Lucent launched the BlackBerry solution in the Ukraine.
* Vodacom launched the BlackBerry Curve 8310 in South Africa.
* Reliance Communications launched the BlackBerry 8830 World Edition, the BlackBerry 8703e, the BlackBerry Curve and the BlackBerry Pearl in India.
* BPL launched the BlackBerry Curve in Mumbai, India.
* Vodafone launched the BlackBerry Curve 8310 in New Zealand.
You will find the financial results on the link below:
www.rim.com/news/press/2007/pr-04_10_2007-01.shtml The replay of the company's Q2 conference call can be accessed after 7 p.m. (eastern), October 4, 2007 until midnight (eastern), October 18, 2007. It can be accessed by dialing 416-640-1917 and entering passcode 21221688#. The conference will also appear on the RIM web site, live at 5:00 pm (eastern) and archived at
www.rim.com/investors/events/index.shtml until midnight November 8, 2007.
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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 (Nasdaq: RIMM) and the Toronto Stock Exchange (TSX: RIM). 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 third quarter of fiscal 2008, anticipated growth in subscribers, anticipated growth during the fiscal year and plans relating to RIM and its carrier partners. The terms and phrases, "expected", "growth is fueled", "continued diversification", "momentum" 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. 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 RIM's review of its historical option granting practices, the restatement of its previously filed financial statements as a result of the review, and regulatory investigations and litigation relating to these matters; the efficient and uninterrupted operation of RIM's network operations center; risks relating to RIM's intellectual property rights; 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.
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.
Note to the editor, not for publication:
For more information:
Lammers van Toorenburg Benelux PR
Dennis Hompes
+31 (0)30 - 65 65 070
BlackBerry@lvtpr.nl RIM
Julie Paillard
Public Relations Manager, France & Benelux
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investor_relations@rim.com