Research in Motion reports first quarter results
WATERLOO, ON, June 21 /CNW/ - Research In Motion Limited (RIM) (Nasdaq:
RIMM, TSE: RIM), a world leader in innovative wireless solutions for the
mobile communications market, today reported first quarter results for the
three months ended June 2, 2001. (all figures in US $ and Canadian GAAP)
Revenue for the first quarter of fiscal 2002 was $77.0 million, an
increase of 184% over the $27.1 million in the first quarter last year. As
expected, this was lower than the $90.1 million in the previous quarter.
BlackBerry(TM) accounted for approximately 65% of the Company's current
quarterly revenue, RIM Wireless Handhelds(TM) accounted for 27% and OEM radio
modems and other revenue accounted for 8%.
"We're pleased that we've been able to continue to perform well in a
challenging economic environment," said Jim Balsillie, Chairman and Co-CEO.
"With a growing BlackBerry subscriber base and impending product launches in
Europe, the company is prepared to execute on the large growth phase expected
this Fall."
Net income for the quarter was $3.8 million or $0.05 per share basic and
diluted compared to $0.4 million or $0.01 per share basic and $0.00 diluted in
the first quarter of fiscal 2001. The net increase was due primarily to the
significant increase in the scale of the business, with increases in gross
profit and investment income being larger than offsetting increases in
operating costs.
Gross research and development costs for the quarter were $9.6 million or
13% of revenue, compared to $9.1 million or 10% of revenue in the fourth
quarter of fiscal 2001 and $4.5 million or 17% of revenue in the first quarter
of fiscal 2001. The increase was primarily due to increased staffing levels,
costs related to pending new product launches and growth in technology
infrastructure. Net research and development costs were $7.3 million.
Selling, marketing and administration expenses were $21.9 million or 28%
of revenue, compared to $22.3 million or 25% of revenue in the prior quarter
of fiscal 2001 and $10.4 million or 38% of revenue in the first quarter of
fiscal 2001. As expected, SM&A was relatively flat with the prior quarter. The
company continues to ramp sales and marketing resources as well as add
additional IT infrastructure. The expansion of RIM's European operations
continues as the BlackBerry launch in Europe approaches.
Investment income decreased to $9.2 million in the current quarter from
$11.2 million in the fourth quarter of fiscal 2001 and increased from $2.9
million in the first quarter of the prior year. The decrease in interest
income was primarily attributable to reduced interest rate yields and a
slightly lower average balance of cash, cash equivalents and marketable
securities during the first quarter.
Cash, cash equivalents and marketable securities were $698.6 million as
at June 2, 2001 compared to $721.9 million as at February 28, 2001. Working
capital investment and capital expenditures in property and buildings
accounted for the majority of the $23.3 million reduction.
"Results were in line with expectations despite some areas of weakness in
the BlackBerry reseller channel," said Dennis Kavelman, Chief Financial
Officer. "We are maintaining guidance for the second quarter and maintaining
our positive outlook on the second half of the year."
Highlights of the first quarter:
- RIM announced that the United States Patent and Trademark Office issued
a patent to RIM for the BlackBerry Single Mailbox Integration system.
This patent covers a system and method invented by RIM that was
commercialized as an important architectural element of RIM's
BlackBerry wireless email solution.
- 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. Motient also announced continued deployment of the RDLAP
protocol in one hundred cities to provide increased speed and capacity
to the Motient 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.
- Aether Systems announced the availability of Reuters MarketClip on RIM
Wireless Handhelds(TM). Reuters MarketClip, a collaborative effort by
Aether Systems and Reuters, is designed to provide real-time stock
quotes and associated financial information. It also allows users to
create and track their portfolios, set alerts and request a wide range
of market content.
- Cingular Interactive announced availability of its Corporate E-mail
PLUS service featuring the BlackBerry wireless email solution.
BlackBerry won the "Cingular Best Solution" award at Cingular's WAVE
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For further information: Contact RIM Investor Relations at
(519) 888-7465 or investor_relations@rim.net |
