SOURCE: Research In Motion Limited
Research In Motion reports $90.1 million revenue for fourth quarter and $221.3 million for the year
WATERLOO, ON, April 11 /CNW/ - Research In Motion Limited (RIM) (Nasdaq: RIMM, TSE: RIM), a world leader in the mobile communications market, today reported fourth quarter and year end results for the three months and fiscal year ended February 28, 2001. (all figures in US $ and Canadian GAAP)
Revenue for the fourth quarter of fiscal 2001 was $90.1 million. This marks a 46% increase over the prior quarter's revenue of $61.6 million and a 249% increase over the $25.8 million generated in the fourth quarter of last year. BlackBerry(TM) subscriber growth continues to be a main revenue driver. As well, shipments of RIM® Wireless Handhelds(TM) to AOL contributed to the significant growth. BlackBerry accounted for approximately 48% of the Company's quarterly revenue. RIM Wireless Handhelds accounted for 45% and OEM radio modems accounted for 7%.
Revenue increased to $221.3 million for the year ended February 28, 2001, representing an increase of 160% over the prior year. The increase for the year was primarily due to substantial growth in RIM Wireless Handheld shipments and BlackBerry subscribers. At the end of February there were approximately 164,000 BlackBerry subscribers in 7,800 companies.
"The results reported today mark the completion of another outstanding year for RIM," said Jim Balsillie, Chairman and Co-CEO. "BlackBerry continues its growth as the leading wireless email platform for the North American enterprise market; and we are well positioned for our entry to new international markets with next-generation products. We have the resources necessary to execute our business plan and extend our competitive lead; and we expect to repeat our success during the upcoming year."
Proforma net income for the quarter was $8.3 million or $0.11 per share ($0.10 diluted) compared with a net income of $1.5 million in the prior quarter and a net income of $3.2 million in the same quarter last year. For the year, proforma net income was $8.5 million or $0.12 per share ($0.11 diluted) compared to net income of $10.5 million or $0.16 per share ($0.14 diluted).
Due to macroeconomic and financial market conditions, several of RIM's long-term investments have experienced significant non-temporary declines in their value. As a result, RIM has taken a one-time write-down of $14.75 million. After accounting for this one-time write-down, the net loss for the quarter was $6.5 million ($0.08 per share). For the year, the net loss was $6.2 million ($0.08 per share).
Gross research and development expenditures for the quarter were $9.1 million, or 10% of revenue, compared to $6.7 million in the prior quarter, or 11% of revenue, and $3.7 million, or 14% of revenue, in the fourth quarter last year. For the year, gross R&D expenditures were $25.7 million as compared to $12.2 million in the previous year, which represents an increase of 110%. R&D expenditures, net of government funding, for the quarter were $7.1 million.
Selling, marketing and administration expenses were $22.3 million, or 25% of revenue, for the quarter compared to $16.9 million, or 27% of revenue in the previous quarter and $5.1 million, or 20% of revenue, in the fourth quarter of last year. Planned investments in BlackBerry marketing, co- operative marketing programs, and staffing increases in sales, marketing, and customer support have contributed to the increase. For the year, selling, marketing and administration expenses were $65.2 million.
Cash, cash equivalents and marketable securities were $721.9 million at February 28, 2001 as compared to $733.9 million in the previous quarter.
Highlights of the fourth quarter:
- RIM announced the appointment of Larry Conlee as Chief Operating
Officer of Engineering and Manufacturing. Mr. Conlee joined RIM with
over twenty years of international experience in corporate senior
management at Motorola.
- RIM announced its first major European supply agreement for BlackBerry.
Under the terms of the agreement, RIM will supply BT Cellnet with
BlackBerry Enterprise Edition for distribution in the UK. The supply
agreement includes an initial commitment from BT Cellnet to order
175,000 BlackBerry Wireless Handhelds with associated software and
service.
- BlackBerry Enterprise Edition for Lotus® Domino(TM) was introduced.
The announcement approximately doubles the number of enterprise
customers that now have the ability to stay wirelessly connected to
their corporate email through BlackBerry. It also marks the first
wireless handheld solution to offer tight integration with Lotus Notes
and Domino together with end-to-end security and
'Always On, Always Connected' operation.
- RIM and IBM joined forces to provide BlackBerry to companies
internationally. IBM Global Services is adding BlackBerry-based
solutions to its portfolio of wireless solutions and establishing a
team to focus on the integration of BlackBerry with enterprise email
and intranet backend systems. IBM will provide business consulting and
design services, as well as systems integration services.
- Vaultus and RIM formed a strategic alliance to deliver wireless
solutions that enable enterprise customers to reduce costs and gain
greater sales efficiencies. Under the terms of the agreement, RIM will
supply Vaultus a minimum of 50,000 BlackBerry Wireless Handhelds with
associated software and services within the next two years.
- AvantGo and RIM announced a strategic alliance focused on delivering
wireless Web-based data and corporate applications to Fortune 1000
customers. The companies will co-market existing and future products
and services to enterprise customers and channel partners.
- The BlackBerry Wireless Email Solution was added to several government
purchasing contracts including the U.S. government GSA schedule.
- Kasten Chase and RIM announced an agreement focused on providing secure
wireless access to the U.S. Government's Defense Message System (DMS)
via BlackBerry. The integrated RASP Data Security/BlackBerry solution
will be designed to meet government standards for remote access to DMS.
Kasten Chase will also market the solution to government end-user
organizations and select BlackBerry government resellers.
- E(x)TRADE launched its integrated brokerage and banking solution on the
award-winning RIM Wireless Handhelds.
- BlackBerry Enterprise Edition for Lotus Domino received the Gold Award
from Lotus Advisor magazine. RIM Wireless Handhelds also received top
awards from eWeek magazine and Smart Business magazine.
Highlights subsequent to quarter end:
- RIM announced another major breakthrough in wireless enterprise
applications with the introduction of wireless calendar support for
BlackBerry. With wireless calendar synchronization, BlackBerry
Enterprise Server and BlackBerry Wireless Handhelds exchange calendar
events wirelessly and securely. The user's online calendar and handheld
calendar are automatically synchronized over-the-air without need of a
cradle.
- GoAmerica and RIM announced that Go.Web(TM) version 6.0 will be bundled
with BlackBerry. Go.Web 6.0 includes enhanced features for mobile
access to web and corporate information.
- The BlackBerry Wireless Handheld was awarded the FIPS 140-1 Validation
for its embedded encryption technology by the National Institute of
Standards and Technology (NIST). FIPS 140-1 Validation is an important,
and often mandatory, purchasing criteria for many organizations and
will help facilitate continued adoption of BlackBerry in the government
sector.
- Wynd Communications and RIM demonstrated the WyndTell accessibility
solution at the FOSE 2001 show. WyndTell with RIM Wireless Handhelds is
designed to meet the needs of people who are deaf or hard of hearing by
enabling users to communicate using two-way technology.
- Yahoo! and Motient added RIM 857 Wireless Handheld support allowing
wireless access to Yahoo! content and services via Motient's wireless
data network.
- Lucent Technologies and RIM announced an alliance focused on
accelerating commercialization of third generation (3G) mobile
solutions. Lucent and RIM will cooperate in interoperability testing
for next-generation networks and coordinate trials with mobile network
operators around the world.
- RIM has signed memoranda of understanding with two additional European
carriers to offer BlackBerry to their corporate customers. Esat
Digifone (in Ireland) and Telfort Mobiel B.V. (in The Netherlands) are
deploying a nation-wide GPRS network in its respective country that
will support the BlackBerry wireless email solution.
The replay of the Company's Q4 conference call can be accessed after 8 p.m. (eastern time) April 11, 2001 until midnight (eastern time) April 18, 2001. It can be accessed by calling (416) 626-4100 and entering reservation number 18450978. The conference call can also be accessed via our web site, live and archived, at rim.net. |
