Good Morning Tim
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Canadian Quotes from Telenium
RIM. (TSE)
Attention Business/Financial Editors:
Research In Motion Reports Record Results for Q1
WATERLOO, ON, June 23 /CNW/ - Research In Motion Limited (NASDAQ: RIMM,
TSE: RIM), a leader in wireless email and two-way wireless data
communications, today reported first quarter results for the three months
ended May 31, 1999. (All amounts are in Canadian dollars unless otherwise
stated.)
Revenue for the first quarter of fiscal 2000 was $24.1 million,
representing a 172% increase over $8.9 million in the same period last year.
RIM's Inter@ctive Pager accounted for approximately 77% of revenue for the
period, while OEM radio product sales accounted for approximately 20% of
revenue.
''Momentum behind our products continues to build,'' said Mike Lazaradis,
RIM President and Co-CEO. ''The successful launch of BlackBerry Enterprise
Server, together with separate announcements from major distribution partners
including BellSouth, PageNet, Cantel, American Mobile and SkyTel suggests that
we are beginning a very exciting period.''
''Partnerships with industry leaders is the key,'' said Jim Balsillie,
RIM Chairman and Co-CEO. ''RIM and Intel won an award for the best North
American business alliance. We have also successfully partnered with Microsoft
in delivering BlackBerry to Microsoft Exchange users.''
Gross margin for the first quarter was 42%, compared to 43% in the first
quarter of fiscal 1999 and 38% in the previous fourth quarter of fiscal 1999
ended February 28, 1999. Gross margin was higher than the fourth quarter as
revenue included payments for non-recurring engineering for advanced
development work.
Net income for the first quarter was $2.7 million (4 cents basic and
fully diluted per share) compared to $0.8 million (1 cent basic and fully
diluted per share) in the same quarter last year.
Gross research and development expenses were $3.6 million or 15% of
revenue for the quarter as compared to $3.1 million (11% of revenue) in the
fourth quarter of fiscal 1999 and $2.6 million (29% of revenue) in the first
quarter of fiscal 1999.
Sales, Marketing and Administrative expenses remained consistent with the
previous quarter at $3.4 million (14% of revenue) as RIM continues to support
the BlackBerry rollout and the marketing efforts of channel partners.
RIM's cash position remains strong with $91 million in combined cash and
short-term securities at May 31, 1999. Investment income of $1.1 million was
generated on cash reserves for the quarter.
Highlights in the first quarter include:
- RIM introduced BlackBerry Enterprise Server. A key component of the
BlackBerry wireless email solution, BlackBerry Enterprise Server is
optional, add-on software that runs on a server and allows centralized
administration, increased scalability, enhanced performance and
improved support for laptop users;
- American Mobile announced their eLink(TM) wireless email service
featuring the RIM Inter@ctive Pager 850. The eLink service operates
on American Mobile's nationwide ARDIS network and offers advanced
two-way messaging and wireless email services to customers with
standard POP3 compliant email systems;
- Wynd Communications, a leader in providing wireless communications
services to people who are deaf or hard of hearing, and Rogers Cantel
Inc., Canada's largest wireless communications company, announced a
strategic alliance to deliver the WyndTell(TM) service in Canada using
the RIM Inter@ctive Pager 950;
- RIM announced an alliance with PageMart Canada Limited that will
provide paging services such as numeric telephone dispatch, personal
800 numbers, custom greeting, voicemail, and web-based messaging to
BlackBerry customers;
- RIM was honoured as a Laureate during the 1999 Computerworld
Smithsonian award ceremony held April 12, 1999 in Washington, DC,
where the Company was named an ''Innovator who use(s) information
technology to benefit society.'' As part of the award, RIM's
Inter@ctive Pager has been accepted into the Smithsonian
Institution's Permanent Research Collection of Information Technology.
- WolfeTech Corporation announced the availability of the PocketGenie
service for BlackBerry. WolfeTech selects and filters some of the best
content on the web and will deliver this high-value information
directly to BlackBerry Handhelds through the PocketGenie service;
- GoAmerica introduced the Go.Web service for the RIM Inter@ctive
Pager 950 and BlackBerry. GoAmerica subscribers can access
personalized web content such as stock, news, travel, sports and
weather updates through the Go.Web service; and
- Dynamic Mobile Data Systems, Inc. (DMD) introduced MobileDispatch -- a
two-way wireless dispatch solution that affordably enables time
sensitive communications and status tracking through the RIM
Inter@ctive Pager.
A replay of the company's Q1 conference call can be accessed after 1 pm
(eastern time) today by calling 416 626 4100, reservation number 1259 2577.
Shareholders are reminded that the Annual General Meeting will be held at
6:30 p.m. on July 20, 1999 at the Canadian Clay and Glass Gallery in Waterloo,
Ontario.
About Research In Motion
Research In Motion Limited (RIM) is a leading designer, manufacturer and
marketer of innovative wireless solutions for the mobile communications
market. Through development and integration of hardware, software and
services, RIM provides solutions for seamless access to time-sensitive
information including email, messaging, Internet and intranet-based
applications. RIM technology also enables a broad array of third party
developers and manufacturers in North America and around the world to enhance
their products and services with wireless connectivity. RIM's portfolio of
award-winning products includes the RIM Inter@ctive(TM) Pager product line,
the BlackBerry(TM) wireless email solution, wireless personal computer card
adapters, embedded radio-modems and software development tools. A growth
company, founded in 1984 and based in Waterloo, Ontario, RIM is listed on the
NASDAQ Stock Market (NASDAQ: RIMM) and the Toronto Stock Exchange (TSE: RIM).
Investors may contact investor_relations@rim.net. Customers may contact
info@rim.net.
Research In Motion, RIM, the RIM logo, Inter@ctive, Inter@ctive
Pager and BlackBerry are trademarks of Research In Motion Limited. Research In
Motion and RIM are registered with the U.S. Patent and Trademark Office. All
other brands, products and company names mentioned herein may be trademarks or
registered trademarks of their respective holders.
Forward-looking statements in this news release are made pursuant to the
''safe harbor'' provisions of the United States Private Securities Litigation
Reform Act of 1995. Investors are cautioned that such forward-looking
statements involve risks and uncertainties, including, without limitation,
risks relating to possible product defects and product liability, risks
related to international sales and potential foreign currency fluctuations,
risks related to the year 2000 issue, continued acceptance of RIM's products,
increased levels of competition, technological changes, dependence on
intellectual property rights and other risks detailed from time to time in
RIM's periodic reports filed with the United States Securities and Exchange
Commission and other regulatory authorities.
<<
QUARTERLY STATEMENT OF OPERATIONS
For the three months ended May 31 Fiscal Fiscal
(in thousands, except for earnings per share) 2000 1999
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(unaudited) (note 1)
Revenue $ 24,117 $ 8,875
Cost of sales 14,012 5,082
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10,105 3,793
Research and development, net of government
assistance of $1,210 (1999 - $901) 2,359 1,665
Selling, marketing and administration 3,424 1,840
Amortization 1,376 753
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7,159 4,258
Income (loss) from operations 2,946 (465)
Investment income 1,067 1,492
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Income before provision for taxes 4,013 1,027
Provision for income taxes 1,355 270
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Net income $ 2,658 $ 757
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Earnings per share, basic $ .04 $ .01
Earnings per share, fully diluted $ .04 $ .01
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Note 1: Comparative figures have been reclassified to conform to the
current year's presentation.
BALANCE SHEET
As at May 31 Fiscal Fiscal
(in thousands) 2000 1999
-------------------------------------------------------------------------
(unaudited) (note 1)
CURRENT ASSETS
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Cash and cash equivalents $ 39,266 $ 109,755
Marketable securities 51,721 -
Accounts receivable 16,287 10,463
Inventory 32,092 15,531
Prepaid expenses 6,389 1,583
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145,755 137,332
CAPITAL ASSETS 23,981 16,968
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TOTAL ASSETS $ 169,736 $ 154,300
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CURRENT LIABILITIES
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Accounts payable and accrued liabilities $ 3,577 $ 2,025
Income taxes payable 1,680 452
Deferred revenue 1,120 1,013
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6,377 3,490
SHAREHOLDERS' EQUITY
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Capital stock 149,337 148,232
Retained earnings 14,022 2,578
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163,359 150,810
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 169,736 $ 154,300
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Note 1: Comparative figures have been reclassified to conform to the
current year's presentation.
STATEMENT OF CASH FLOWS
For the three months ended May 31 Fiscal Fiscal
(in thousands) 2000 1999
-------------------------------------------------------------------------
(unaudited) (note 1)
CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------
Net income for the period $ 2,658 $ 757
Items not requiring an outlay of cash:
Amortization 1,376 753
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4,034 1,510
Net changes in non-cash working capital items (9,861) 3,213
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Total cash provided by (used in) operations (5,827) 4,723
CASH FLOWS FROM FINANCING ACTIVITIES
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Income tax reduction resulting from financing
costs 200 -
Issuance of share capital, net of financing
costs 446 -
Government funding received for capital
expenditures 150 250
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Total cash provided by financing activities 796 250
CASH FLOWS FROM INVESTING ACTIVITIES
------------------------------------
Acquisition of capital assets (3,157) (4,237)
Proceeds on sale and maturity of marketable
securities 33,134 13,011
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Total cash provided by investing activities 29,977 8,774
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Increase in cash and cash equivalents 24,946 13,747
for the period
Cash and cash equivalents, beginning of the
period 14,320 96,008
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Cash and cash equivalents, end of the period $ 39,266 $ 109,755
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Note 1: Comparative figures have been reclassified to conform to the
current year's presentation.
>>
%SEDAR: 00008452E
-30-
For further information: Dennis Kavelman, (519) 888-7465
RESEARCH IN MOTION LIMITED has 48 releases in this database.
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