Research In Motion reports strong second quarter growth
WATERLOO, ON, Sep 28, 2000 /PRNewswire via COMTEX/ -- Research In Motion Limited (Nasdaq: RIMM chart, msgs; TSE: RIM chart, msgs), a world leader in the mobile communications market, today reported second quarter results for the six months ended August 31, 2000. (all figures in US $ and Canadian GAAP)
Revenue for the second quarter of fiscal 2001 was $42.5 million. This marks a 57% increase over the prior quarter's revenue of $27.1 million and a 121% increase over the $19.3 million generated in the second quarter of last year. BlackBerry(TM) subscriber growth continues to be a main revenue driver. BlackBerry accounted for approximately 57% of the Company's quarterly revenue. RIM Wireless Handhelds(TM) accounted for 36%; and OEM radio modems and software sales accounted for the balance.
"The BlackBerry wireless email business continues to grow rapidly," said Jim Balsillie, Chairman and Co-CEO. "Acceptance of BlackBerry as a mainstream business tool has been achieved with both users and IT departments. During this next phase, our distribution partners will help RIM to further penetrate the enterprise market and enter the consumer market."
"Our main tasks ahead call for focused execution - drive ahead on research and development; continue to expand our sales and marketing initiatives; increase manufacturing capabilities; and grow our IT infrastructure."
Net loss for the quarter was $1.6 million ($0.02 per share basic and fully diluted) compared with a net income of $0.4 million in the prior quarter and $2.3 million in the same quarter last year. The earnings reflect the company's commitment to grow the BlackBerry subscriber base with increased investment in marketing and channel support costs.
Gross research and development expenditures for the quarter were $5.3 million, or 13% of revenue, compared to $4.5 million in the prior quarter, or 17% of revenue, and $2.8 million, or 15% of revenue, in the second quarter last year.
Selling, marketing and administration expenses were $15.7 million, or 37% of revenue, for the quarter compared to $10.4 million, or 38% of revenue in the previous quarter and $3.0 million, or 16% of revenue, in the second quarter of last year. Planned investments in BlackBerry marketing, co- operative marketing programs, and staffing increases in sales, marketing, and customer support have contributed to the increase.
Cash, cash equivalents and marketable securities were $183.8 million at August 31, 2000 as compared to $198.8 in the previous quarter. Changes in working capital, capital investments and investments in key strategic partners account for the decrease.
"BlackBerry growth and continuing strong sales of RIM Wireless Handhelds were the drivers for the significant revenue growth this quarter," said Dennis Kavelman, Chief Financial Officer. "Expenses increased in line with expectations as we executed on our plan to grow the business."
Highlights of the second quarter:
- RIM announced an expanded relationship with Compaq Computer
Corporation wherein the two companies began offering customers an
end-to-end wireless email solution that is co-branded by Compaq and
RIM. The new solution is named the iPAQ BlackBerry Wireless Email
Solution and features RIM's advanced wireless handhelds, PC utilities,
enterprise server software and wireless services together with server
hardware, enterprise messaging software and professional services from
Compaq.
- BT Cellnet and RIM announced that the two companies are working
together to offer the BlackBerry wireless email solution to BT Cellnet
corporate customers in the UK. BlackBerry will support both
Microsoft(R) Exchange and Lotus Notes environments and will operate
over BT Cellnet's new GPRS (General Packet Radio Service) high speed
network.
- OracleMobile and RIM announced a joint-marketing agreement. The
companies plan to work together to promote Ask@OracleMobile and
Oracle "Portal-to-Go" via BlackBerry.
- RIM and Brience, a leading provider of next-generation wireless and
broadband solutions, announced they will work together to enable
corporations to extend enterprise applications and information to
BlackBerry Wireless Handhelds(TM), allowing mobile employees to manage
eBusiness interactions on the go.
- OneMain.com announced availability of BlackBerry Internet Edition.
This initial roll-out will be offered where available through its
integrated local operations in California, Tennessee, Illinois,
Pennsylvania and Missouri. Further expansion plans include
availability in 35 states.
- RIM and Certicom, a leading provider of mobile eCommerce security,
announced an agreement, which allows for large-scale deployment of
Certicom's ECC technology across RIM's full line of wireless
handhelds. Using Certicom's security technology, RIM's development
community can provide secure, end-to-end mobile commerce solutions for
a broad range of customers, including carriers, financial institutions
and application service providers.
- RxRite announced its e-prescription application built on the
BlackBerry Wireless Email Solution. ePrescription enables physicians
to connect with its Internet-based prescription service anywhere,
anytime. This technology allows RxRite to deploy their e-prescription
service directly into the hands of physicians, without requiring
computers and Internet connectivity.
- Rogers AT&T Wireless announced the availability of the Rogers AT&T
Go.Web Microbrowser. The Rogers AT&T Go.Web Microbrowser enables
customers to access any HTML web site anytime, anywhere and offers
access to a variety of Canadian content partners, such as Canada.com,
CBC and CTV Sportsnet.RIM introduced its Development Environment for
Java technology at the JavaOne conference. RIM demonstrated and
distributed its Development Kit (Early Access Version) for the Java 2
Platform, Micro Edition (J2ME). RIM also distributed RIM Wireless
Handhelds running an early release of the J2ME Connected Limited
Device Configuration (CLDC).
- Handango added support for RIM Wireless Handhelds to its Internet
marketplace for handheld and wireless computing solutions. Handango
offers a full suite of services to the RIM developer community,
including a featured area on Handango.com to promote and sell RIM
handhelds and applications.
- Tucows.com, a leading distributor of software on the Internet,
announced it will distribute software on its Tucows PDA site to
support RIM Wireless Handhelds. With its distribution capabilities and
eCommerce solutions, as well as its developer relationships, Tucows
will be able to help create a strong market for third party
applications, particularly Java-based applications, that support the
RIM products and services.
- In June, PC World Magazine awarded BlackBerry with the World Class
Award for Best Wireless Communication Device.
Highlights subsequent to quarter end:
- Bell Mobility announced it will offer BlackBerry for use on its
Canadian ARDIS wireless data network. The agreement encompasses both
BlackBerry Exchange Edition and BlackBerry Internet Edition.
- Rogers AT&T Wireless announced the expansion of their existing
distribution agreement to include BlackBerry Exchange Edition in
addition to BlackBerry Internet Edition. While BlackBerry Internet
Edition is currently available in Rogers Cantel retail outlets
throughout Canada, BlackBerry Exchange Edition will be sold through
Rogers AT&T Wireless' extensive corporate sales channels.
- RIM announced the appointment of Don Morrison as Chief Operating
Officer (COO). Morrison's mandate as the first COO of RIM is to
strengthen the Company's international operations and help build a
world-class service organization to support RIM's BlackBerry Wireless
Email Solution. Morrison joins RIM following a number of leadership
positions in Canada, Europe and the United States with AT&T and Bell
Canada.
The replay of the company's Q2 conference call can be accessed after 7 p.m. (eastern time) September 28, 2000 until midnight (eastern time) October 6, 2000. It can be accessed by calling (416) 626-4100 and entering reservation number 16283891. The conference will also appear on our web site, live and archived, at www.rim.net/invest/invest.html.
About Research In Motion
Research In Motion Limited 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 around the world to enhance their products and services with wireless connectivity. RIM's portfolio of award-winning products includes the RIM Wireless Handheld(TM) product line, the BlackBerry(TM) wireless email solution, wireless personal computer card adapters, embedded radio-modems and software development tools. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in Canada, the United States and England. RIM is listed on the Nasdaq Stock Market (Nasdaq: RIMM chart, msgs) and the Toronto Stock Exchange (TSE: RIM chart, msgs). For more information, visit www.rim.net. Investors may contact investor_relations@rim.net. Customers may contact info@rim.net.
Research In Motion, RIM, the RIM logo, the RIM Wireless Handheld family of marks, 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. |
