RIMM: The results reported today are preliminary pending the restatement related to RIM's historical non-cash charges associated with past option grants.
Research In Motion Reports Preliminary Third Quarter Results
Thursday December 21, 4:05 pm ET
WATERLOO, ONTARIO--(MARKET WIRE)--Dec 21, 2006 -- Research In Motion Limited (RIM) (NASDAQ:RIMM - News)(TSX:RIM.TO - News), a world leader in the mobile communications market, today reported preliminary third quarter results for the three months ended December 2, 2006 (all figures in U.S. dollars).
ANZEIGE
The results reported today are preliminary pending the restatement related to RIM's historical non-cash charges associated with past option grants. As disclosed previously, RIM is completing a management-initiated, voluntary review of RIM's historical option granting practices. It is the Company's belief that the impact of any restatement on GAAP and adjusted operating results for fiscal 2007, including the third quarter, will be immaterial. RIM will file final financial statements for the second and third quarters of fiscal 2007 following the completion of the review, which is expected prior to RIM's fiscal year end of March 3, 2007.
Revenue for the third quarter of fiscal 2007 was $835.1 million, up 26.8% from $658.5 million in the previous quarter and up 49% from $560.6 million in the same quarter of last year. The revenue breakdown for the quarter was approximately 75% for handhelds, 17% for service, 5% for software, and 3% for other revenue. Approximately 875,000 BlackBerry subscriber accounts were added in the quarter. At the end of the quarter, the total BlackBerry subscriber account base was approximately 7 million. Revenue and subscriber account additions will not be impacted by the restatement referenced above.
"We are extremely pleased with the strong revenue and subscriber account growth achieved in the third quarter," said Jim Balsillie, Chairman and Co-CEO at RIM. "New product launches during the past few months have exceeded our expectations and we look forward to continuing this momentum into the new year."
Preliminary GAAP net income for the quarter was $176.0 million, or $0.93 per share diluted. Excluding regular stock option expense of $3.6 million, preliminary adjusted net income was $179.6 million, or $0.95 per share diluted. The preliminary adjusted net income and preliminary adjusted net income per share do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other issuers. The adjusted measures should be considered in the context of RIM's preliminary GAAP results.
Revenue for the fourth quarter of fiscal 2007 ending March 3, 2007 is expected to be in the range of $900-$940 million. Subscriber account additions in the fourth quarter are expected to be in the range of 950,000-975,000. GAAP earnings per share for the fourth quarter are expected to be in the range of $0.92-$0.99 cents per share diluted. Adjusted earnings per share for the fourth quarter, which excludes regular stock option expense of approximately $5 million, are forecast to be in the range of $0.95-$1.02 per share diluted.
The total of cash, cash equivalents, short-term and long-term investments was $1.3 billion as at December 2, 2006, compared to $1.2 billion at the end of the previous quarter, an increase of $155 million over the prior quarter. Cash was provided by operating activities as well as issuance of share capital. These were offset in part by capital expenditures |
