Skip to content

Research In Motion Reports Fourth Quarter and Year-End Results for Fiscal 2009

Waterloo, ON – Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM), a world leader in the mobile communications market, today reported results for the three months and fiscal year ended February 28, 2009 (all figures in U.S. dollars and U.S. GAAP). 

Revenue for the fourth quarter of fiscal 2009 was $3.46 billion, up 24.5% from $2.78 billion in the previous quarter and up 84% from $1.88 billion in the same quarter of last year. The revenue breakdown for the quarter was approximately 83% for devices, 12% for service, 2% for software and 3% for other revenue. Revenue for the fiscal year ended February 28, 2009 was $11.07 billion, up 84% from $6.01 billion last year.  RIM shipped approximately 7.8 million devices in the fourth quarter and approximately 26 million devices during fiscal 2009.

Approximately 3.9 million net new BlackBerry® subscriber accounts were added in the quarter.  At the end of the quarter, the total BlackBerry subscriber account base was approximately 25 million. 

"We are very pleased to report another record quarter with standout subscriber growth that speaks volumes about the early success and momentum of our new BlackBerry products,” said Jim Balsillie, Co-CEO at RIM. “RIM experienced an extraordinary year in fiscal 2009, shipping our 50 millionth BlackBerry smartphone and generating $11 billion in revenue. Looking ahead into fiscal 2010, we see exceptional opportunities for RIM and its partners to leverage the investments and success of the past year to continue growing market share and profitability."

Net income for the quarter was $518.3 million, or $0.90 per share diluted, compared with net income of $396.3 million, or $0.69 per share diluted, in the prior quarter and net income of $412.5 million, or $0.72 per share diluted, in the same quarter last year.  There was no material foreign exchange impact on RIM’s tax rate in the quarter.  For the fiscal year 2009, net income was $1.89 billion, or $3.30 per share diluted, up 46.3% over fiscal 2008. 

Revenue for the first quarter of fiscal 2010 ending May 30, 2009 is expected to be in the range of $3.3-$3.5 billion.  Gross margin for Q1 is expected to be approximately 43-44%.  Net subscriber account additions in the first quarter are expected to be between 3.7 – 3.9 million.  Earnings per share for the first quarter are expected to be in the range of $0.88-$0.97 per share diluted. 

The total of cash, cash equivalents, short-term investments and long-term investments was $2.24 billion as at February 28, 2009, compared to $2.49 billion at the end of the previous quarter, a decrease of $250 million over the prior quarter.  Uses of cash in the quarter included capital expenditures of $252 million and the acquisition of intangible assets of $222 million.

A conference call and live webcast will be held beginning at 5 pm ET, April 2, 2009, which can be accessed by dialing 800-733-7571 (North America), 416-915-5761 (outside North America). The replay of the company’s Q4 conference call can be accessed after 7 pm ET, April 2, 2009 until midnight ET, April 16, 2009.  It can be accessed by dialing 416-640-1917 and entering passcode 21252988#.   The conference call will also appear on the RIM website live at 5 pm ET and will be archived at http://www.rim.com/investors/events/index.shtml.

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™ 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, gross margin and earnings expectations for the first quarter of fiscal 2010 and anticipated growth in subscribers.  The terms “continue”, “opportunities”, and “expected” 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: reduced spending by customers and other risks relating to the uncertainty of economic and geopolitical conditions; 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; risks relating to the efficient and uninterrupted operation of RIM’s network operations center; risks related to RIM’s international operations; 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) (unaudited)

Consolidated Statements of Operations

  For the three months ended   For the year ended
 
February 28,
2009
November 29,
2008
March 1,
2008
 
February 28,
2009
March 1,
2008

 
             
Revenue
$ 3,463,193
$ 2,782,098
$ 1,882,705
 
$ 11,065,186
$ 6,009,395
Cost of sales
2,079,615
1,512,592
914,483
 
5,967,888
2,928,814

 

Gross margin
1,383,578
1,269,506
968,222
 
5,097,298
3,080,581

 

Gross Margin %
40.0%
45.6%
51.4%
 
46.1%
51.3%
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
   Research and development
182,535
193,044
104,573
 
684,702
359,828
   Selling, marketing and administration
406,493
382,968
267,881
 
1,495,697
881,482
   Amortization
61,595
53,023
31,314
 
194,803
108,112

 

 
650,623
629,035
403,768
 
2,375,202
1,349,422

 

Income from operations
732,955
640,471
564,454
 
2,722,096
1,731,159
 
 
 
 
 
 
 
   Investment income
10,568
31,554
20,114
 
78,267
79,361

 

Income before income taxes
743,523
672,025
584,568
 
2,800,363
1,810,520

 

Provision for income taxes
 
 
 
 
 
 
   Current
223,314
298,646
178,579
 
948,536
587,845
   Deferred
1,950
(22,917)
(6,512)
 
(40,789)
(71,192)

 

 
225,264
275,729
172,067
 
907,747
516,653

 

Net Income
$ 518,259
$ 396,296
$ 412,501
 
$ 1,892,616
$ 1,293,867

 

 
 
 
 
 
 
 
Earnings per share
 
 
 
 
 
 

 

   Basic
$ 0.92
$ 0.70
$ 0.73
 
$ 3.35
$ 2.31

 

   Diluted
$ 0.90
$ 0.69
$ 0.72
 
$ 3.30
$ 2.26

 

 
 
 
 
 
 
 
Weighted average number of common shares outstanding (000’s)
 
 
 
 
 
 
   Basic
566,105
565,687
561,837
 
565,059
559,778
   Diluted
572,753
573,514
573,851
 
574,156
572,830
 
 
 
 
 
 
 
Total common shares outstanding (000's)
566,219
565,998
562,652
 
566,219
562,652

 

Research In Motion Limited
Incorporated under the Laws of Ontario
(United States dollars, in thousands except per share data) (unaudited)

Consolidated Balance Sheets

As at
February 28, 2009
March 1, 2008

Assets    
Current    
   Cash and cash equivalents $ 835,546 $ 1,184,398
   Short-term investments 682,666 420,709
   Trade receivables 2,112,117 1,174,692
   Other receivables 157,728 74,689
   Inventory 682,400 396,267
   Other current assets 187,257 135,849
   Deferred income tax asset 183,872 90,750
 
  4,841,586 3,477,354
     
     
Long-Term Investments 720,635 738,889
Capital assets 1,334,648 705,955
Intangible assets 1,066,527 469,988
Goodwill 137,572 114,455
Deferred income tax asset 404 4,546
 
  $ 8,101,372 $ 5,511,187
 
     
Liabilities    
   Current    
   Accounts payable $ 448,339 $ 271,076
   Accrued liabilities 1,238,602 690,442
   Income taxes payable 361,460 475,328
   Deferred revenue 53,834 37,236
   Deferred income tax liability 13,116 -
   Current portion of long-term debt - 349
 
  2,115,351 1,474,431
 
     
Deferred income tax liability 87,917 65,058
Income taxes payable 23,976 30,873
Long-term debt - 7,259
 
  2,227,244 1,577,621
     
Shareholders’ equity    
   Capital stock 2,208,235 2,169,856
   Retained earnings 3,545,710 1,653,094
   Paid-in capital 119,726 80,333
   Accumulated other comprehensive income 457 30,283
 
  5,874,128 3,933,566
 
  $ 8,101,372 $ 5,511,187
 

 

Research In Motion Limited
Incorporated under the Laws of Ontario
(United States dollars, in thousands except per share data) (unaudited)

Consolidated Statements of Cash Flows

 
For the three
months ended
February 28, 2009
For the year ended
February 28, 2009

     
Cash flows from operating activities    
Net income
$ 518,259
$ 1,892,616
 
 
 
Items not requiring an outlay of cash:
 
 
   Amortization
116,125
327,896
   Deferred income taxes
3,291
(36,623)
   Income taxes payable
(456)
(6,897)
   Stock-based compensation
8,900
38,100
   Other
5,598
5,867
Net changes in working capital items
(360,975)
(769,114)
 
Net cash provided by operating activities
290,742
1,451,845
 
Cash flows from financing activities
 
 
Issuance of common shares
2,183
27,024
Excess tax benefits from stock-based compensation
(52)
12,648
Repayment of debt
(14,061)
(14,305)
 
Net cash provided by financing activities
(11,930)
25,367
 
 
 
 
Cash flows from investing activities
 
 
Acquisition of long-term investments
(67,326)
(507,082)
Proceeds on sale or maturity of long-term investments
127,048
431,713
Acquisition of capital assets
(251,932)
(833,521)
Acquisition of intangible assets
(221,964)
(687,913)
Business acquisitions
(48,425)
(48,425)
Acquisition of short-term investments
(250,018)
(917,316)
Proceeds on sale or maturity of short-term investments
170,178
739,021
 
Net cash used in investing activities
(542,439)
(1,823,523)
 
 
 
 
Effect of foreign exchange loss on cash and cash equivalents
(2,541)
(2,541)
 
Net decrease in cash and cash equivalents for the period
(266,168)
(348,852)
Cash and cash equivalents, beginning of period
1,101,714
1,184,398
 
Cash and cash equivalents, end of period
$ 835,546
$ 835,546
 
 
 
 
 
 
 
 
 
 
As at
February 28, 2009
November 29, 2008

Cash and cash equivalents
$ 835,546
$ 1,101,714
Short-term investments
682,666
574,279
Long-term investments
720,635
812,638
 
 
$ 2,238,847
$ 2,488,631