research in motion q4 fiscal 2011 earnings

8/7/2019 Research in Motion Q4 Fiscal 2011 Earnings

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FY2012 and Q1 Outlook:For the full year fiscal 2012, RIM expects earnings per share to be in excess of $7.50 fully diluted.Revenue for the first quarter of fiscal 2012 ending May 28, 2011 is expected to be in the range of $5.2-$5.6 billion. Gross margin percentage for the first quarter is expected to be approximately 41.5%.Earnings per share for the first quarter are expected to be in the range of $1.47 -$1.55 per share diluted.This guidance range reflects a mix shift in handset towards lower ASP products in the first quarter and anincreased level of investment in Research and Development and Sales and Marketing related to our tablet

and platform initiatives. The guidance range is slightly wider than normal to reflect the risk of potentialdisruption in RIMs supply chain as a result of the recent earthquake in Japan.

Conference Call and Webcast:A conference call and live webcast will be held beginning at 5 pm ET, March 24, 2011, which can beaccessed by dialing 1-800-814-4859 (North America), 416-644-3414 (outside North America). The replayof the companys Q4 conference call can be accessed after 7 pm ET, March 24, 2011 until midnight ET,April 7, 2011. It can be accessed by dialing 416-640-1917 and entering passcode 4310316#. Theconference call will also appear on the RIM website live at 5 pm ET and will be archived athttp://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 forthe worldwide mobile communications market. Through the development of integrated hardware, softwareand services that support multiple wireless network standards, RIM provides platforms and solutions forseamless access to time-sensitive information including email, phone, SMS messaging, internet andintranet-based applications. RIM technology also enables a broad array of third party developers andmanufacturers to enhance their products and services with wireless connectivity. RIMs portfolio ofaward-winning products, services and embedded technologies are used by thousands of organizationsaround the world and include the BlackBerry wireless platform, the RIM Wireless Handheld productline, software development tools, radio-modems and software/hardware licensing agreements. Founded in1984 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.

Media Contact:Marisa ConwayBrodeur (PR Agency for RIM)(212) [email protected]

Investor Contact:RIM Investor Relations(519) [email protected]

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This news release contains forward-looking statements within the meaning of the U.S. Private SecuritiesLitigation Reform Act of 1995 and Canadian securities laws, including statements relating to RIM'srevenue, gross margin and earnings expectations for the first quarter of fiscal 2012, its current

expectations for earnings growth for the full year of fiscal 2012, anticipated customer demand, , thepotential growth opportunity from the convergence of mobile communications and mobile computingmarkets, product initiatives and timing, and anticipated growth, opportunities relating to new products andtechnology. The terms and phrases growth opportunity, capitalize, foundations for the future,expect, 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 itsexperience and its perception of historical trends, current conditions and expected future developments, aswell as other factors that RIM believes are appropriate in the circumstances including but not limited togeneral economic conditions, product pricing levels and competitive intensity, supply constraints and new
http://www.rim.com/investors/events/index.shtmlhttp://www.rim.com/http://www.blackberry.com/mailto:[email protected]:[email protected]://www.blackberry.com/http://www.rim.com/http://www.rim.com/investors/events/index.shtml


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product introductions. Many factors could cause RIM's actual results, performance or achievements todiffer materially from those expressed or implied by the forward-looking statements, including, withoutlimitation: risks relating to RIM's intellectual property rights; RIM's ability to enhance current productsand develop new products and services; risks related to delays in new product launches; risks related tointense competition; RIM's reliance on carrier partners, third-party manufacturers, third-party networkdevelopers and suppliers, including potential risks to RIMs supply chain for functional componentscaused by the recent earthquake in Japan; risks relating to network disruptions and other business

interruptions; RIMs reliance on key personnel; risks related to third party manufacturers and RIMsability to manage its production processes; risks related to RIMs international operations; security risksand risks related to encryption technology; potential defects in RIMs products; RIMs ability to manageinventory and other asset risk; RIMs ability to maintain and enhance its brand; RIMs ability tosuccessfully enter the tablet market; RIMs ability to manage growth; and difficulties in forecasting RIMsquarterly financial results, particularly over longer periods given the rapid technological changes, evolvingindustry standards, intense competition and short product life cycles that characterize the wirelesscommunications industry. These risk factors and others relating to RIM are discussed in greater detail inthe "Risk Factors" section of RIM's Annual Information Form, which is included in its Annual Report onForm 40-F and RIMs MD&A (copies of which filings may be obtained at www.sedar.com orwww.sec.gov). These factors should be considered carefully, and readers should not place undue relianceon 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 andtrademarks of Research In Motion Limited. RIM, Research In Motion and BlackBerry are registered withthe U.S. Patent and Trademark Office and may be pending or registered in other countries. All otherbrands, product names, company names, trademarks and service marks are the properties of theirrespective owners.


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Research In Motion LimitedIncorporated under the Laws of Ontario

(United States dollars, in millions except for share and per share amounts) (unaudited)

Consolidated Statements of Operations

For the three months ended

February 26,2011

November 27,2010

February 27,2010

February 26,2011

February 272010

Revenue $ 5,556 $ 5,495 $ 4,080 $ 19,907 $ 14,9

Cost of sales 3,103 3,101 2,217 11,082 8,3

Gross margin 2,453 2,394 1,863 8,825 6,5

Gross margin % 44.2% 43.6% 45.7% 44.3% 44.0

Operating expensesResearch and development 383 357 267 1,351 9

Selling, marketing and administration 705 666 498 2,400 1,9

Amortization 125 115 86 438 3Litigation - - - - 1

1,213 1,138 851 4,189 3,3

Income from operations 1,240 1,256 1,012 4,636 3,2

Investment income (loss), net(1) 3 (11) 5 8

Income before income taxes 1,243 1,245 1,017 4,644 3,2

Provision for income taxes 309 334 307 1,233 8

Net income $ 934 $ 911 $ 710 $ 3,411 $ 2,4

Earnings per shareBasic $ 1.79 $ 1.74 $ 1.27 $ 6.36 $ 4.

Diluted $ 1.78 $ 1.74 $ 1.27 $ 6.34 $ 4.

Weighted - average number of sharesoutstanding (000s)

Basic 522,764 522,436 557,114 535,986 564,49

Diluted 524,334 524,406 561,130 538,330 569,75

Total common shares outstanding (000's) 523,869 521,776 557,328 523,869 557,32

(1) For the three months ended November 27, 2010, investment income (loss), net reflects a charge of approximately $17 milliorelating to the impairment of certain investments.

For the year ended


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Research In Motion LimitedIncorporated under the Laws of Ontario

(United States dollars, in millions) (unaudited)

Consolidated Statements of Cash Flows

February 26,2011

February 27,2010

Cash flows from operating activitiesNet income 3,411$ 2,457$

Adjustments to reconcile net income to net cash provided by

operating activities:Amortization 927 616Deferred income taxes 92 51Income taxes payable 2 5Stock-based compensation 72 58Other 1 9

Net changes in working capital items (496) (161)

Net cash provided by operating activities 4,009 3,035

Cash flows from investing activitiesAcquisition of long-term investments (784) (863)Proceeds on sale or maturity of long-term investments 893 473Acquisition of property, plant and equipment (1,039) (1,009)Acquisition of intangible assets (557) (421)Business acquisitions, net of cash acquired (494) (143)Acquisition of short-term investments (503) (477)Proceeds on sale or maturity of short-term investments 786 970Net cash used in investing activities (1,698) (1,470)

Cash flows from financing activitiesIssuance of common shares 67 30Tax benefits (deficiencies) related to stock-based (1) 2

compensationPurchase of treasury stock (76) (94)Common shares repurchased (2,077) (775)Repayment of debt - (6)Net cash used in financing activities (2,087) (843)Effect of foreign exchange gain (loss) on cash and cash

equivalents 16 (6)

Net increase in cash and cash equivalents for the year 240 716

Cash and cash equivalents, beginning of year 1,551 835Cash and cash equivalents, end of year 1,791$ 1,551$

As at

February 26,

2011

November 27,

2010

Cash and cash equivalents 1,791$ 1,435$Short-term investments 330 340Long-term investments 577 696

2,698$ 2,471$

For the year ended

research in motion q4 fiscal 2011 earnings

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