In this release it looks like the writedown is included giving a loss of 8 cents per share. POS
Research in Motion Ltd - News Release
Research in Motion loses eight cents per share in Q4
Research in Motion Ltd RIM
Shares issued 67,955,380 2001-04-10 close $38.43
Wednesday Apr 11 2001 News Release
Mr. Jim Balsillie reports
Fourth quarter and year-end results for the three months and fiscal year ended Feb. 28, 2001, were as follows:
All figures in U.S. dollars and Canadian generally accepted accounting principles.
Revenue for the fourth quarter of fiscal 2001 was $90.1-million. This marks a 46-per-cent increase over the prior quarter's revenue of $61.6-million and a 249-per-cent increase over the $25.8-million generated in the fourth quarter of last year. BlackBerry subscriber growth continues to be a main revenue driver. As well, shipments of RIM Wireless Handhelds to AOL contributed to the significant growth. BlackBerry accounted for approximately 48 per cent of the company's quarterly revenue. RIM Wireless Handhelds accounted for 45 per cent and original equipment manufacturer radio modems accounted for 7 per cent.
Revenue increased to $221.3-million for the year ended Feb. 28, 2001, representing an increase of 160 per cent over the prior year. The increase for the year was primarily due to substantial growth in RIM Wireless Handheld shipments and BlackBerry subscribers. At the end of February there were approximately 164,000 BlackBerry subscribers in 7,800 companies.
"The results reported today mark the completion of another outstanding year for RIM," said Jim Balsillie, chairman and co-chief executive officer. "BlackBerry continues its growth as the leading wireless E-mail platform for the North American enterprise market; and we are well positioned for our entry to new international markets with next-generation products. We have the resources necessary to execute our business plan and extend our competitive lead; and we expect to repeat our success during the upcoming year."
Pro forma net income for the quarter was $8.3-million or 11 cents per share (10 cents diluted) compared with a net income of $1.5-million in the prior quarter and a net income of $3.2-million in the same quarter last year. For the year, pro forma net income was $8.5-million or 12 cents per share (11 cents diluted) compared with net income of $10.5-million or 16 cents per share (14 cents diluted).
Due to macroeconomic and financial market conditions, several of RIM's long-term investments have experienced significant non-temporary declines in their value. As a result, RIM has taken a one-time writedown of $14.75-million. After accounting for this one-time writedown, the net loss for the quarter was $6.5-million (eight cents per share). For the year, the net loss was $6.2-million (eight cents per share).
Gross research and development expenditures for the quarter were $9.1-million, or 10 per cent of revenue, compared with $6.7-million in the prior quarter, or 11 per cent of revenue, and $3.7-million, or 14 per cent of revenue, in the fourth quarter last year. For the year, gross research and development expenditures were $25.7-million as compared with $12.2-million in the previous year, which represents an increase of 110 per cent. R&D expenditures, net of government financing, for the quarter were $7.1-million.
Selling, marketing and administration expenses were $22.3-million, or 25 per cent of revenue, for the quarter compared with $16.9-million, or 27 per cent of revenue in the previous quarter and $5.1-million, or 20 per cent of revenue, in the fourth 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. For the year, selling, marketing and administration expenses were $65.2-million.
Cash, cash equivalents and marketable securities were $721.9-million at Feb. 28, 2001, as compared with $733.9-million in the previous quarter.
Highlights of the fourth quarter
RIM announced the appointment of Larry Conlee as chief operating officer of engineering and manufacturing. Mr. Conlee joined RIM with over 20 years of international experience in corporate senior management at Motorola.
RIM announced its first major European supply agreement for BlackBerry. Under the terms of the agreement, RIM will supply BT Cellnet with BlackBerry Enterprise Edition for distribution in the United Kingdom. The supply agreement includes an initial commitment from BT Cellnet to order 175,000 BlackBerry Wireless Handhelds with associated software and service.
BlackBerry Enterprise Edition for Lotus Domino was introduced. The announcement approximately doubles the number of enterprise customers that now have the ability to stay wirelessly connected to their corporate E-mail through BlackBerry. It also marks the first wireless hand-held solution to offer tight integration with Lotus Notes and Domino together with end-to-end security and "Always On, Always Connected" operation.
RIM and IBM joined forces to provide BlackBerry to companies internationally. IBM Global Services is adding BlackBerry-based solutions to its portfolio of wireless solutions and establishing a team to focus on the integration of BlackBerry with enterprise E-mail and intranet back-end systems. IBM will provide business consulting and design services, as well as systems integration services.
Vaultus and RIM formed an alliance to deliver wireless solutions that enable enterprise customers to reduce costs and gain greater sales efficiencies. Under the terms of the agreement, RIM will supply Vaultus a minimum of 50,000 BlackBerry Wireless Handhelds with associated software and services within the next two years.
AvantGo and RIM announced an alliance focused on delivering wireless Web-based data and corporate applications to Fortune 1000 customers. The companies will co-market existing and future products and services to enterprise customers and channel partners.
The BlackBerry wireless E-mail solution was added to several government purchasing contracts including the U.S. government GSA schedule.
Kasten Chase Applied Research Ltd. and RIM announced an agreement focused on providing secure wireless access to the U.S. government's defence message system (DMS) by way of BlackBerry. The integrated RASP data security/BlackBerry solution will be designed to meet government standards for remote access to DMS. Kasten Chase will also market the solution to government end-user organizations and select BlackBerry government resellers.
E*TRADE Group launched its integrated brokerage and banking solution on the award-winning RIM Wireless Handhelds.
BlackBerry Enterprise Edition for Lotus Domino received the Gold Award from Lotus Advisor magazine. RIM Wireless Handhelds also received top awards from eWeek magazine and Smart Business magazine.
Highlights subsequent to quarter end
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 on-line calendar and hand-held calendar are automatically synchronized over the air without need of a cradle.
GoAmerica and RIM announced that Go.Web 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 by way of Motient's wireless data network.
Lucent Technologies and RIM announced an alliance focused on accelerating commercialization of third generation (3G) mobile solutions. Lucent and RIM will co-operate in interoperability testing for next-generation networks and co-ordinate trials with mobile network operators around the world.
RIM has signed memoranda of understanding with two additional European carriers to offer BlackBerry to their corporate customers. Esat Digifone (in Ireland) and Telfort Mobiel B.V. (in the Netherlands) are deploying a nationwide GPRS network in its respective country that will support the BlackBerry wireless E-mail solution.
The replay of the company's fourth quarter conference call can be accessed after 8 p.m. ET April 11, 2001, until midnight ET April 18, 2001. It can be accessed by calling 416-626-4100 and entering reservation No. 18450978. The conference call can also be accessed by way of the company's Web site, live and archived, at rim.net.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
CONSOLIDATED STATEMENT OF OPERATIONS
(thousands of U.S. dollars)
Three months Three months
ended ended
02/28/01 02/29/00
Revenue $ 90,079 $ 25,801
Cost of sales 55,593 15,534
--------- ---------
Gross margin 34,486 10,267
--------- ---------
Research and
development 7,141 1,587
Selling,
marketing and
administration 22,272 5,082
Amortization 3,212 1,706
--------- ---------
32,625 8,375
--------- ---------
Income (loss)
from operations 1,861 1,892
Investment
income 11,238 2,995
--------- ---------
Income before
writedown of
long-term
investments and
provision for
income taxes 13,099 4,887
Writedown of
long-term
investments 14,750 -
--------- ---------
Income (loss)
before provision
for income taxes (1,651) 4,887
Provision for
income taxes 4,819 1,679
--------- ---------
Net income
(loss) $ (6,470) $ 3,208
========= =========
Earnings (loss)
per share,
basic (0.08) 0.05
Earnings (loss)
per share,
diluted (0.08) 0.04
CONSOLIDATED STATEMENT OF OPERATIONS
(thousands of U.S. dollars)
Year ended Year ended
02/28/01 02/29/00
Revenue $ 221,327 $ 84,967
Cost of sales 133,852 48,574
--------- ---------
Gross margin 87,475 36,393
--------- ---------
Research and
development 18,281 7,738
Selling,
marketing and
administration 65,200 13,904
Amortization 8,645 4,683
--------- ---------
92,126 26,325
--------- ---------
Income (loss)
from operations (4,651) 10,068
Investment
income 22,921 5,968
--------- ---------
Income before
writedown of
long-term
investments and
provision for
income taxes 18,270 16,036
Writedown of
long-term
investments 14,750 -
--------- ---------
Income (loss)
before provision
for income taxes 3,520 16,036
Provision for
income taxes 9,731 5,538
--------- ---------
Net income
(loss) $ (6,211) $ 10,498
========= =========
Earnings (loss)
per share,
basic (0.08) 0.16
Earnings (loss)
per share,
diluted (0.08) 0.14
(c) Copyright 2001 Canjex Publishing Ltd. canada-stockwatch.com
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