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Canadian Quotes from Telenium
RIM. (TSE)
Attention Business/Financial Editors:
Research In Motion reports record results for fiscal 1999
WATERLOO, ON, April 29 /CNW/ - Research In Motion Limited (NASDAQ: RIMM,
TSE: RIM), a leader in wireless email and two-way wireless data
communications, today reported record increases in both revenue and net income
for the three months and year ended February 28, 1999. (All amounts are in
Canadian dollars unless otherwise stated)
Net income for the fourth quarter of fiscal 1999 rose to $4.3 million (7
cents per share basic and fully diluted) compared to $2.0 million (4 cents per
share basic and 3 cents fully diluted) in the corresponding quarter of fiscal
1998. Net income for fiscal 1999 was $9.5 million (15 cents basic and fully
diluted) versus net income of $0.5 million (1 cent per share basic and fully
diluted) in fiscal 1998.
Revenue for the most recently completed quarter increased 110% to $27.1
million compared to $12.9 million in the same three months of fiscal 1998. The
Inter@ctive Pager(TM) 950 accounted for 85% of revenue in the quarter,
while sales of radio modem products continued to grow and represented 15%.
Government assistance has been offset against research and development
expenditures rather than included in revenue. Revenue for fiscal 1999 of $70.5
million represented a 127% increase over the $31.1 million in revenue
generated a year ago.
''The fourth quarter was significant for RIM in many ways,'' said Mike
Lazaridis, RIM Co-CEO. ''The launch of the BlackBerry(TM) service, numerous
positive reviews and awards for the Inter@ctive Pager 950, and the general
increase in awareness of wireless email and two-way messaging have all
contributed to our momentum.''
''What is notable about our fourth quarter and fiscal 1999 results is
that we were profitable despite being in an early emerging market while
devoting significant resources to research and development, marketing, brand
awareness and increasing production capacity,'' said Jim Balsillie, Co-CEO.
''Tightly executing our business plan and catalyzing market demand for our
products are RIM's themes for fiscal 2000.''
Gross profit in the fourth quarter of fiscal 1999 was $10.2 million or
38% of revenue versus $4.3 million (33% of revenue) in the corresponding
period of fiscal 1998 and $10.8 million (41% of revenue) in the third quarter
of this fiscal year. The year-over-year improvement resulted primarily from
increased utilization in the manufacturing facility and volume pricing
benefits derived from higher volumes. The slight decrease in gross profit from
the third quarter of fiscal 1999 was primarily the result of exchange rate
fluctuations. Gross profit in fiscal 1999 was $27.7 million (39% of revenue)
compared to $9.6 million (31% of revenue) in the last fiscal year.
Enhanced sales channel development and heightened recruitment activities
resulted in an increase in selling, marketing and administrative expenses.
These expenses totaled $3.5 million in the fourth quarter of fiscal 1999,
compared to $3.2 million in the third quarter of this fiscal year and $0.9
million in the corresponding period of fiscal 1998. Selling, marketing and
administrative expenses for the year totalled $9.7 million, a 144% increase
over the $4.0 million spent in fiscal 1998.
Gross research and development investments totalled $3.1 million ($1.1
million net of government assistance), compared to $2.9 million in the third
quarter of fiscal 1999 ($2.0 million net) and $2.3 million in the
corresponding quarter of fiscal 1998 ($1.6 million net). Gross research and
development investments totalled $11.8 million for the year, an 82% increase
over the $6.5 million spent in fiscal 1998.
Among recent highlights:
- In January 1999, RIM introduced BlackBerry(TM) - the first complete,
secure, integrated, wireless email solution for the mobile
professional. The BlackBerry mobile email solution includes a powerful
wireless handheld with integrated email/organizer software, PC docking
cradle, innovative desktop software, single mailbox integration with
Microsoft Exchange and flat-rate airtime on nationwide wireless
networks.
- The RIM Inter@ctive(TM) Pager will now be distributed by PageNet,
the leading provider of wireless messaging products in the United
States. PageNet plans to market the BellSouth Interactive Paging
Service through its direct sales force and reseller channel. PageNet
provides wireless messaging and information services to more than 10
million subscribers in North America.
- On April 7, 1999, American Mobile announced a relationship with Skytel
announced a strategic relationship to pursue joint resale opportunities
in the wireless data market. RIM has been shipping working prototype
devices to American Mobile according to contracted milestones.
- On February 4, 1999, RIM began trading on the NASDAQ Stock Market
under the symbol RIMM.
- RIM announced it has been selected to supply its wireless modem
technology to The ADEMCO Group of Syosset, New York, the world's
largest manufacturer of electronic security equipment.
- In February 1999, the RIM Inter@ctive(TM) Pager 950 received the
Mobility Award for Wireless Hardware from Mobile Insights.
- In January 1999, Frost & Sullivan recognized Research In Motion for
demonstrating excellence in product innovation in the paging market
through the development of the RIM Inter@ctive Pager 950.
- In January 1999, the RIM Inter@ctive Pager 950 won the Best Pager
Award for 1998 from Mobile Computing and Communications Magazine for
its wide range of messaging options, intuitive user interface and
small form factor.
- In December 1998, Andrew Seybold's Outlook recognized the RIM
Inter@ctive Pager 950 as an important advance in mobile computing
for its size, user-interface and functionality.
A replay of the company's Q4 conference call can be accessed after 7 pm
(eastern time) tonight by calling 416 626 4100, reservation number 1171862.
About Research In Motion
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 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). Email: info@rim.net. Web site
address: www.rim.net.
Research In Motion, RIM, the RIM logo, 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 harbour'' 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
operations, 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 February 28 Fiscal Fiscal
(in thousands, except for earnings per share) 1999 1998
------------------------------------------------------------------
(unaudited) (note 1)
Revenue $ 27,123 $ 12,871
Cost of sales 16,930 8,598
--------------------------
10,193 4,273
Research and development, net of
government assistance of $2,042
(1998 - $637) 1,070 1,642
Selling, marketing and administration 3,469 883
Amortization 1,341 694
--------------------------
5,880 3,219
Income from operations 4,313 1,054
Investment income 1,238 1,174
--------------------------
Income before provision for taxes 5,551 2,228
Provision for income taxes 1,248 264
--------------------------
Net income $ 4,303 $ 1,964
--------------------------
--------------------------
Earnings per share, basic $.07 $ .04
Earnings per share, fully diluted $.07 $ .03
------------------------------------------------------------------
Note 1: Comparative figures have been reclassified to conform to
the current year's presentation.
STATEMENT OF OPERATIONS
For the year ended February 28 Fiscal Fiscal
(in thousands, except for earnings per share) 1999 1998
------------------------------------------------------------------
(note 1)
Revenue $ 70,483 $ 31,118
Cost of sales 42,829 21,443
--------------------------
27,654 9,675
Research and development, net of
government assistance of $5,269
(1998 - $2,041) 6,524 4,444
Selling, marketing and administration 9,745 3,994
Amortization 4,144 2,192
Interest on loans payable - 82
--------------------------
20,413 10,712
Income (loss) from operations 7,241 (1,037)
Investment income 5,643 1,962
--------------------------
Income before provision for taxes 12,884 925
Provision for income taxes 3,343 385
--------------------------
Net income $ 9,541 $ 540
--------------------------
--------------------------
Earnings per share, basic $ .15 $ .01
Earnings per share, fully diluted $ .15 $ .01
------------------------------------------------------------------
Note 1: Comparative figures have been reclassified to conform to
the current year's presentation.
BALANCE SHEET
As at February 28 Fiscal Fiscal
(in thousands) 1999 1998
------------------------------------------------------------------
(note 1)
CURRENT ASSETS
--------------
Cash and cash equivalents $ 14,320 $ 96,008
Marketable securities 84,855 13,011
Accounts receivable 18,633 14,955
Inventory 29,496 15,398
Prepaid expenses 5,873 242
--------------------------
153,177 139,614
CAPITAL ASSETS 22,350 13,733
-------------- --------------------------
TOTAL ASSETS $ 175,527 $153,347
--------------------------
--------------------------
CURRENT LIABILITIES
-------------------
Accounts payable and accrued
liabilities $ 11,560 $ 2,370
Income taxes payable 1,256 162
Deferred revenue 2,657 760
--------------------------
15,473 3,292
SHAREHOLDERS' EQUITY
--------------------
Capital stock 148,691 148,233
Retained earnings 11,363 1,822
--------------------------
160,053 150,055
--------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' $ 175,527 $ 153,347
EQUITY
--------------------------
--------------------------
Note 1: Comparative figures have been reclassified to conform to
the current year's presentation.
STATEMENT OF CASHFLOWS
For the year ended February 28 Fiscal Fiscal
(in thousands) 1999 1998
------------------------------------------------------------------
(note 1)
CASH PROVIDED BY (USED IN) OPERATIONS
-------------------------------------
Net income for the year $ 9,541 $ 540
Items not requiring an outlay of cash:
Amortization 4,144 2,192
--------------------------
13,685 2,732
Net changes in non-cash working
capital items (11,226) (2,423)
--------------------------
Total cash provided by operations 2,459 309
CASH PROVIDED BY (USED IN) FINANCING
------------------------------------
ACTIVITIES
----------
Income tax reduction resulting from
financing costs 775 306
Issuance of share capital 73 116,890
Financing costs (390) (8,059)
Government funding received for capital
expenditures 430 295
Repayment of loans payable - (1,480)
Capital dividend paid - (390)
--------------------------
Total cash provided by financing
activities 888 107,562
CASH USED IN INVESTING ACTIVITIES
---------------------------------
Acquisition of capital assets (13,191) (8,328)
Acquisition of marketable securities (115,576) (13,011)
Proceeds on sale and maturity of
marketable securities 43,732 -
--------------------------
Total cash used in investing activities (85,035) (21,339)
--------------------------
Increase (decrease) in cash and cash
equivalents for the year (81,688) 86,532
Cash and cash equivalents, beginning
of the year 96,008 9,476
--------------------------
Cash and cash equivalents, end of
the year $ 14,320 $ 96,008
--------------------------
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 41 releases in this database.
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