Thursday December 20 2007 - News Release
Mr. Jim Balsillie reports
RESEARCH IN MOTION REPORTS THIRD QUARTER RESULTS
Research in Motion Ltd. has released its third quarter results for the three months ended Dec. 1, 2007.
All figures are stated in U.S. dollars.
Revenue for the third quarter of fiscal 2008 was $1.67-billion, up 22 per cent from $1.37-billion in the previous quarter and up 100 per cent from $835.1-million in the same quarter of last year. The revenue breakdown for the quarter was approximately 80 per cent for devices, 14 per cent for service, 4 per cent for software and 2 per cent for other revenue. Approximately 1.65 million BlackBerry subscriber accounts were added in the quarter and over 3.9 million devices were shipped. The total BlackBerry subscriber account base at the end of the third quarter was approximately 12 million.
"RIM's performance in the third quarter was solid with strong adoption of BlackBerry products and services continuing across multiple market sectors, including enterprise, small and medium business, and consumer market segments," said Jim Balsillie, co-chief executive officer at Research In Motion. "RIM and its partners continue to execute our business plans effectively. We are pleased to see continuing growth amongst business and government users, with the BlackBerry platform being deployed for a widening range of applications and we are also pleased with the excellent consumer sales results achieved so far in the holiday buying season."
Net income for the quarter was $370.5-million, or 65 cents per share diluted, compared with net income of $287.7-million, or 50 cents per share diluted, in the prior quarter and net income of $175.2-million, or 31 cents per share diluted, in the same quarter last year. The net income for the quarter includes a tax recovery of approximately $10.7-million resulting from the resolution of a tax matter relating to RIM's investment tax credits.
Revenue for the fourth quarter of fiscal 2008 ending March 1, 2008, is expected to be in the range of $1.80-billion to $1.87-billion. Net subscriber account additions in the fourth quarter are expected to be approximately 1.82 million. Earnings per share for the fourth quarter are expected to be in the range of 66 cents to 70 cents per share diluted.
The total of cash and cash equivalents, short-term investments and investments were $2.13-billion as at Dec. 1, 2007, compared with $1.73-billion at the end of the previous quarter, an increase of $405-million over the prior quarter. Uses of cash in the quarter included capital expenditures of approximately $97-million.
The company will hold a conference call and webcast today, live at 5 p.m. Eastern Time and archived the company's website until midnight, Jan. 10, 2008. A replay of the third quarter conference call can also be accessed after 7 p.m. Eastern Time, Dec. 20, 2007, until midnight, Jan. 10, 2008, by dialling 416-640-1917 and entering passcode 21221692 followed by the number sign.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands of U.S. dollars, except per share amounts)
For the three months ended
Dec. 1, Sept. 1, Dec. 2,
2007 2007 2006
Revenue $ 1,672,529 $ 1,372,250 $ 835,053
Cost of sales 824,657 667,833 382,422
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Gross margin 847,872 704,417 452,631
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Gross margin 50.7% 51.3% 54.2%
Expenses
Research and development 92,150 88,171 61,184
Selling, marketing and
administration 238,175 197,943 146,569
Amortization 27,653 25,350 20,334
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357,978 311,464 228,087
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Income from operations 489,894 392,953 224,544
Investment income 23,816 18,984 12,666
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Income before income taxes 513,710 411,937 237,210
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Provision for income taxes
Current 141,457 137,643 50,456
Deferred 1,792 (13,391) 11,562
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143,249 124,252 62,018
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Net income $ 370,461 $ 287,685 $ 175,192
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Earnings per share
Basic $ 0.66 $ 0.51 $ 0.32
Diluted $ 0.65 $ 0.50 $ 0.31
