Well here is the report from today!!-Rampant
Research in Motion Reports Strong Third Quarter Results and BlackBerry
growth
WATERLOO, ON, Dec. 21 /CNW-PRN/ - Research In Motion Limited (Nasdaq:
RIMM, TSE: RIM), a leader in wireless email and two-way wireless data
communications, today reported third quarter results for the three months
ended November 30, 1999. In addition, the Board of Directors declared a
change in reporting currency of the Company's financial statements. Commencing with the fiscal period ending November 30, 1999, the Company's functional and
reporting currency will be United States dollars.
Revenue for the third quarter, fiscal 2000 was US $23.7 million (CDN $34.9 million), representing an increase of 35% from revenue of US $17.5 million in the same period last year. Net income for the quarter was US $3.2 million (CDN $4.7 million) or US $0.05 cents per share basic and
fully diluted (CDN $0.07 cents basic and fully diluted), compared with a net incomeof US $2.8 million (CDN $4.1 million) or US $0.05 cents basic and US $0.04 cents fully diluted per share in the same quarter last year (CDN $0.07 cents basic and $0.06 cents fully diluted).
During the quarter, the Company completed a secondary offering of 5,595,000 common shares, closing for net proceeds of US $162.5 million
(including exercised underwriter overallotment options).
At November 30, 1999, the company had total cash, cash equivalents, and marketable securities of US $217.6 million.
"Growth in BlackBerry customers was a primary driver in the thirdquarter," said Dennis Kavelman, Chief Financial Officer at Research In Motion.
With over 1,800 companies using BlackBerry and many large corporate rollouts underway, BlackBerry seems to have hit a real inflection point. As existing
customers make BlackBerry more pervasive within their organizations and as new sales and distribution channels are brought on, we expect BlackBerry to ramp
quickly."
"Partnerships were a major theme for the third quarter," said Jim Balsillie, Chairman and Co-Chief Executive Officer. "New distribution relationships for BlackBerry were established with Dell Computer, RCN,
espernet.com and other solution providers; American Mobile launched their eLink wireless email service using the RIM 850; new information services and various software applications for vertical markets were introduced for the
RIM
Inter@ctive Pager 950 and BellSouth service; and major milestones were
reached with Diversinet as we build the necessary tools for wireless e-commerce. These ongoing initiatives, together with continued subscriber momentum, represent a strong foundation for growth going forward."
Highlights of the third quarter:
- An agreement was reached with Dell Computer Corporation to supply BlackBerry(TM) Exchange Edition to Dell corporate customers.
- American Mobile Satellite Corporation (AMSC) announced the commercial launch of its eLink(SM) wireless email service operating on the RIM 850 Wireless Handheld.
- RIM announced a new line of OEM radio modems, which incorporate the same core RF technology and Intel386(TM) processor proven by the Company's BlackBerry and Inter@ctive(TM) Pager product lines.
- RIM announced its intention to bring together Sun Microsystems'Java(TM) technology and RIM's wireless handheld devices. RIM plans to support the Java 2 Platform, Micro Edition (J2ME), as well as Sun's K Virtual Machine (KVM).
- Announcements were made with espernet.com and PageNet Canada to supply BlackBerry Internet Edition to their customers.
- The purchase of more than 1,500 BlackBerry Handhelds by Merrill Lynch was announced demonstrating BlackBerry's use in the financial services marketplace.
- Gibson, Dunn & Crutcher announced their decision to supply the BlackBerry wireless email solution to over 500 lawyers and administrative staff, illustrating BlackBerry's popularity in the legal market.
- Diversinet announced an agreement with RIM to incorporate Diversinet's Passport(TM) security technology in RIM's family of wireless handhelds,ensuring secure e-commerce transactions in future applications.
- InterPOS Electronic Payments Inc., a subsidiary of eXcape Inc., along with business partners Rogers Cantel Inc., Royal Bank and RIM unveiled a new point-of-sale (POS) retail solution that will enable wireless credit and debit card transactions using a direct-payment terminal embedded with the RIM OEM radio modem.
- Descartes Systems Group announced that RIM's Inter@ctive Pager and BlackBerry product lines will be offered as part of Descartes' DeliveryNet(TM) solution to provide dynamic scheduling and optimization of delivery and service activities based on real-time, event-driven business data.
- Pivotal Corporation announced their new Pivotal Anywhere(TM) solution for wireless access to Pivotal eBusiness Relationship Management (eBRM)solutions. Pivotal Anywhere operates over the BlackBerry wireless email solution from RIM.
- Paradigm4 unveiled SmartPartner Pager, a wireless data service that provides law enforcement officers with the ability to access critical information from local, state and federal criminal databases via the RIM Inter@ctive Pager 950.
- eDispatch.com signed an evaluation agreement with Telcordia Technologies to provide their popular internet-hosted dispatch service to DataTAC(R) and Mobitex Wireless Network Operators using RIM's wireless handhelds.
In November, the RIM 850 received PC Computing Magazine's 1999 MVP Award for excellence in technical design.
The replay of the company's Q3 conference call can be accessed after 7 p.m. (eastern time) until midnight (eastern) December 27. It can be accessed by calling (416) 626-4100 and entering reservation number 13742815. The
conference will also appear on our web site, live and archived, at www.rim.net/invest/invest.html.
About RIM
Research In Motion (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
theRIM Inter@ctive(TM) Pager product line, the BlackBerry(TM) wireless email
solution, wireless personal computer card adapters, embedded radio-modems
andsoftware development tools. Founded in 1984 and based in Waterloo,
Ontario,
RIM is listed on the Nasdaq Stock Market (Nasdaq: RIMM) and the Toronto
StockExchange (TSE: RIM). Investors may contact investor-relations@rim.net.
Customers may contact info@rim.net. Web site: www.rim.net.
Research In Motion, RIM, the RIM logo, Inter@ctive, Inter@ctive
Pager, BlackBerry, the BlackBerry logo, BlackBerry Exchange Edition and
BlackBerry Internet Edition 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 exchange 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.
YEAR TO DATE STATEMENT OF OPERATIONS
For the nine months ended November 30 Fiscal Fiscal
(in US$ thousands, except for earnings per share) 2000 1999
-------------------------------------------------------------------------
(unaudited)
Revenue $ 59,166 $ 29,123
Cost of sales 33,040 17,395
--------------------
26,126 11,728
--------------------
Research and development, net of government
assistance of $2,357 (1999-$2,167) 6,151 3,665
Selling, marketing and administration 8,822 4,215
Amortization 2,977 1,882
--------------------
17,950 9,762
Income from operations 8,176 1,966
Investment income 2,973 2,959
--------------------
Income before provision for taxes 11,149 4,925
--------------------
Provision for income taxes
Current 2,513 1,407
Deferred 1,346 -
--------------------
3,859 1,407
--------------------
Net income $ 7,290 $ 3,518
--------------------
--------------------
Earnings per share, basic $.11 $.05
Earnings per share, fully diluted $.11 $.05
-------------------------------------------------------------------------
See accompanying notes.
QUARTERLY STATEMENT OF OPERATIONS
For the three months ended November 30 Fiscal Fiscal
(in US$ thousands, except for earnings per share) 2000 1999
-------------------------------------------------------------------------
(unaudited)
Revenue $ 23,689 $ 17,504
Cost of sales 12,853 10,263
--------------------
10,836 7,241
--------------------
Research and development, net of government
assistance of $407 (1999-$641) 2,883 1,309
Selling, marketing and administration 3,505 2,168
Amortization 1,166 800
--------------------
7,554 4,277
--------------------
Income from operations 3,282 2,964
Investment income 1,599 994
--------------------
Income before provision for taxes 4,881 3,958
--------------------
Provision for income taxes
Current 1,630 1,128
Deferred 70 -
--------------------
1,700 1,128
--------------------
Net income $ 3,181 $ 2,830
--------------------
--------------------
Earnings per share, basic $.05 $.05
Earnings per share, fully diluted $.05 $.04
-------------------------------------------------------------------------
See accompanying notes.
BALANCE SHEET
As at November 30 Fiscal Fiscal
(in US$ thousands) 2000 1999
-------------------------------------------------------------------------
(unaudited)
CURRENT ASSETS
--------------
Cash and cash equivalents $ 86,478 $ 44,681
Marketable securities 131,168 21,222
Accounts receivable 22,525 12,777
Inventory 26,333 19,121
Prepaid expenses 6,802 3,086
---------------------
273,306 100,887
DEFERRED INCOME TAXES 3,745 -
---------------------
CAPITAL ASSETS 22,271 13,672
-------------- ---------------------
TOTAL ASSETS $ 299,322 $ 114,559
---------------------
---------------------
CURRENT LIABILITIES
-------------------
Accounts payable and accrued liabilities $ 12,890 $ 6,615
Taxes payable 2,101 1,380
Deferred revenue 2,398 2,256
---------------------
17,389 10,251
---------------------
SHAREHOLDERS' EQUITY
--------------------
Common shares 267,012 99,567
Retained earnings 14,921 4,741
---------------------
281,933 104,308
---------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 299,322 $ 114,559
---------------------
---------------------
See accompanying notes.
Notes to Financial Statements
November 30, 1999
Note 1: CHANGE IN FUNCTIONAL AND REPORTING CURRENCY
The Company has historically measured and presented its financial
statements in Canadian dollars. Effective September 1, 1999, as a result of
the Company's increased economic activity in the U.S, the U. S. dollar has
become the functional currency of the Company's operations. Effective the
same
date, the U. S. dollar has also been adopted as the reporting currency.
For periods up to and including August 31, 1999, the Canadian dollar
financial statements of the Company have been restated into U.S. dollars, in
accordance with accounting principles generally accepted in Canada, using
theAugust 31, 1999 closing exchange rate being a rate of CDN $1.4888 per
US $1.00.
Note 2: RECLASSIFICATION OF COMPARATIVE FIGURES
Comparative figures have been reclassified to conform to the current
year's presentation.
Alll in all a good report and rosy outlook:)-Rampant |
