Research In Motion Reports Fourth Quarter and Year-End Results for Fiscal 2009

• Press Release
• Source: Research In Motion
• On 4:10 pm EDT, Thursday April 2, 2009

WATERLOO, ONTARIO--(MARKET WIRE)--Apr 2, 2009 -- Research In Motion Limited (RIM) (NasdaqGS:RIMM - News)(Toronto:RIM.TO - News), a world leader in the mobile communications market, today reported results for the three months and fiscal year ended February 28, 2009 (all figures in U.S. dollars and U.S. GAAP).

Revenue for the fourth quarter of fiscal 2009 was $3.46 billion, up 24.5% from $2.78 billion in the previous quarter and up 84% from $1.88 billion in the same quarter of last year. The revenue breakdown for the quarter was approximately 83% for devices, 12% for service, 2% for software and 3% for other revenue. Revenue for the fiscal year ended February 28, 2009 was $11.07 billion, up 84% from $6.01 billion last year. RIM shipped approximately 7.8 million devices in the fourth quarter and approximately 26 million devices during fiscal 2009.

Approximately 3.9 million net new BlackBerry® subscriber accounts were added in the quarter. At the end of the quarter, the total BlackBerry subscriber account base was approximately 25 million.

"We are very pleased to report another record quarter with standout subscriber growth that speaks volumes about the early success and momentum of our new BlackBerry products," said Jim Balsillie, Co-CEO at RIM. "RIM experienced an extraordinary year in fiscal 2009, shipping our 50 millionth BlackBerry smartphone and generating $11 billion in revenue. Looking ahead into fiscal 2010, we see exceptional opportunities for RIM and its partners to leverage the investments and success of the past year to continue growing market share and profitability."

Net income for the quarter was $518.3 million, or $0.90 per share diluted, compared with net income of $396.3 million, or $0.69 per share diluted, in the prior quarter and net income of $412.5 million, or $0.72 per share diluted, in the same quarter last year. There was no material foreign exchange impact on RIM's tax rate in the quarter. For the fiscal year 2009, net income was $1.89 billion, or $3.30 per share diluted, up 46.3% over fiscal 2008.

Revenue for the first quarter of fiscal 2010 ending May 30, 2009 is expected to be in the range of $3.3-$3.5 billion. Gross margin for Q1 is expected to be approximately 43-44%. Net subscriber account additions in the first quarter are expected to be between 3.7 - 3.9 million. Earnings per share for the first quarter are expected to be in the range of $0.88-$0.97 per share diluted.

The total of cash, cash equivalents, short-term investments and long-term investments was $2.24 billion as at February 28, 2009, compared to $2.49 billion at the end of the previous quarter, a decrease of $250 million over the prior quarter. Uses of cash in the quarter included capital expenditures of $252 million and the acquisition of intangible assets of $222 million.

A conference call and live webcast will be held beginning at 5 pm ET, April 2, 2009, which can be accessed by dialing 800-733-7571 (North America), 416-915-5761 (outside North America). The replay of the company's Q4 conference call can be accessed after 7 pm ET, April 2, 2009 until midnight ET, April 16, 2009. It can be accessed by dialing 416-640-1917 and entering passcode 21252988#. The conference call will also appear on the RIM website live at 5 pm ET and will be archived at http://www.rim.com/investors/events/index.shtml.

About Research In Motion (RIM)

Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity. RIM's portfolio of award-winning products, services and embedded technologies are used by thousands of organizations around the world and include the BlackBerry® wireless platform, the RIM Wireless Handheld(TM) product line, software development tools, radio-modems and software/hardware licensing agreements. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe and Asia Pacific. RIM is listed on the Nasdaq Stock Market (NasdaqGS:RIMM - News) and the Toronto Stock Exchange (Toronto:RIM.TO - News). For more information, visit www.rim.com or www.blackberry.com.

This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to RIM's revenue, gross margin and earnings expectations for the first quarter of fiscal 2010 and anticipated growth in subscribers. The terms "continue", "opportunities", and "expected" and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by RIM in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that RIM believes are appropriate in the circumstances including but not limited to general economic conditions, product pricing levels and competitive intensity, supply constraints and new product introductions. Many factors could cause RIM's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: reduced spending by customers and other risks relating to the uncertainty of economic and geopolitical conditions; risks relating to RIM's intellectual property rights; RIM's ability to enhance current products and develop new products and services; RIM's reliance on carrier partners, third-party manufacturers, third-party network developers and suppliers; risks relating to the efficient and uninterrupted operation of RIM's network operations center; risks related to RIM's international operations; and intense competition. These risk factors and others relating to RIM are discussed in greater detail in the "Risk Factors" section of RIM's Annual Information Form, which is included in its Annual Report on Form 40-F and RIM's MD&A (copies of which filings may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on RIM's forward-looking statements. RIM has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited. RIM, Research In Motion and BlackBerry are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners.

 

                            Research In Motion Limited
                      Incorporated under the Laws of Ontario
    (United States dollars, in thousands except per share data)(unaudited)

                     Consolidated Statements of Operations

                       For the three months ended        For the year ended
             ---------------------------------------------------------------
             February 28, November 29,    March 1,  February 28,    March 1,
                    2009         2008        2008          2009        2008
----------------------------------------------------------------------------
Revenue      $ 3,463,193  $ 2,782,098 $ 1,882,705  $ 11,065,186 $ 6,009,395
Cost of
 sales         2,079,615    1,512,592     914,483     5,967,888   2,928,814
             ---------------------------------------------------------------
Gross margin   1,383,578    1,269,506     968,222     5,097,298   3,080,581
             ---------------------------------------------------------------
 Gross
  margin %          40.0%        45.6%       51.4%         46.1%       51.3%

Expenses
 Research and
  development    182,535      193,044     104,573       684,702     359,828
 Selling,
  marketing and
  administration 406,493      382,968     267,881     1,495,697     881,482
 Amortization     61,595       53,023      31,314       194,803     108,112
             ---------------------------------------------------------------
                 650,623      629,035     403,768     2,375,202   1,349,422
             ---------------------------------------------------------------

Income from
 operations      732,955      640,471     564,454     2,722,096   1,731,159

 Investment
  income          10,568       31,554      20,114        78,267      79,361
             ---------------------------------------------------------------

Income
 before
 income taxes    743,523      672,025     584,568     2,800,363   1,810,520
             ---------------------------------------------------------------

Provision
 for income
 taxes
 Current         223,314      298,646     178,579       948,536     587,845
 Deferred          1,950      (22,917)     (6,512)      (40,789)    (71,192)
             ---------------------------------------------------------------
                 225,264      275,729     172,067       907,747     516,653

             ---------------------------------------------------------------
Net income   $   518,259  $   396,296 $   412,501  $  1,892,616 $ 1,293,867
             ---------------------------------------------------------------
             ---------------------------------------------------------------

Earnings per
 share
 Basic       $      0.92  $      0.70 $      0.73  $       3.35 $      2.31
             ---------------------------------------------------------------
             ---------------------------------------------------------------
 Diluted     $      0.90  $      0.69 $      0.72  $       3.30 $      2.26
             ---------------------------------------------------------------
             ---------------------------------------------------------------

Weighted
 average
 number of
 common
 shares
 outstanding
 (000's)
 Basic           566,105      565,687     561,837       565,059     559,778
 Diluted         572,753      573,514     573,851       574,156     572,830

Total common
 shares
 outstanding
 (000's)         566,219      565,998     562,652       566,219     562,652



                         Research In Motion Limited
                   Incorporated under the Laws of Ontario
 (United States dollars, in thousands except per share data)(unaudited)

                        Consolidated Balance Sheets


                                             February 28,         March 1,
As at                                               2009             2008
--------------------------------------------------------------------------

Assets
 Current
  Cash and cash equivalents                $     835,546     $  1,184,398
  Short-term investments                         682,666          420,709
  Trade receivables                            2,112,117        1,174,692
  Other receivables                              157,728           74,689
  Inventory                                      682,400          396,267
  Other current assets                           187,257          135,849
  Deferred income tax asset                      183,872           90,750
                                          --------------------------------
                                               4,841,586        3,477,354

Long-term investments                            720,635          738,889
Capital assets                                 1,334,648          705,955
Intangible assets                              1,066,527          469,988
Goodwill                                         137,572          114,455
Deferred income tax asset                            404            4,546
                                          --------------------------------
                                           $   8,101,372     $  5,511,187
                                          --------------------------------
                                          --------------------------------

Liabilities
 Current
  Accounts payable                         $     448,339     $    271,076
  Accrued liabilities                          1,238,602          690,442
  Income taxes payable                           361,460          475,328
  Deferred revenue                                53,834           37,236
  Deferred income tax liability                   13,116                -
  Current portion of long-term debt                    -              349
                                          --------------------------------
                                               2,115,351        1,474,431

Deferred income tax liability                     87,917           65,058
Income taxes payable                              23,976           30,873
Long-term debt                                         -            7,259
                                          --------------------------------
                                               2,227,244        1,577,621
                                          --------------------------------

Shareholders' Equity
Capital stock                                  2,208,235        2,169,856
Retained earnings                              3,545,710        1,653,094
Additional paid-in capital                       119,726           80,333
Accumulated other comprehensive income               457           30,283
                                          --------------------------------
                                               5,874,128        3,933,566
                                          --------------------------------
                                           $   8,101,372     $  5,511,187
                                          --------------------------------
                                          --------------------------------



                             Research In Motion Limited
                     Incorporated under the Laws of Ontario
  (United States dollars, in thousands except per share data)(unaudited)

                       Consolidated Statements of Cash Flows


                                        For the three
                                         months ended   For the year ended
                                    February 28, 2009    February 28, 2009
---------------------------------------------------------------------------

Cash flows from operating
 activities
Net income                          $         518,259    $       1,892,616

Items not requiring an outlay of
 cash:
 Amortization                                 116,125              327,896
 Deferred income taxes                          3,291              (36,623)
 Income taxes payable                            (456)              (6,897)
 Stock-based compensation                       8,900               38,100
 Other                                          5,598                5,867
Net changes in working capital
 items                                       (360,975)            (769,114)
                                  -----------------------------------------
Net cash provided by operating
 activities                                   290,742            1,451,845
                                  -----------------------------------------

Cash flows from financing
 activities
Issuance of share capital                       2,183               27,024
Excess tax benefits from
 stock-based compensation                         (52)              12,648
Repayment of debt                             (14,061)             (14,305)
                                  -----------------------------------------
Net cash (used by) provided by
 financing activities                         (11,930)              25,367
                                  -----------------------------------------

Cash flows from investing
 activities
Acquisition of long-term
 investments                                  (67,326)            (507,082)
Proceeds on sale or maturity of
 long-term investments                        127,048              431,713
Acquisition of capital assets                (251,932)            (833,521)
Acquisition of intangible assets             (221,964)            (687,913)
Business acquisitions                         (48,425)             (48,425)
Acquisition of short-term
 investments                                 (250,018)            (917,316)
Proceeds on sale or maturity of
 short-term investments                       170,178              739,021
                                  -----------------------------------------
Net cash used in investing
 activities                                  (542,439)          (1,823,523)
                                  -----------------------------------------
Effect of foreign exchange loss
 on cash and cash equivalents                  (2,541)              (2,541)
                                  -----------------------------------------
Net decrease in cash and cash
 equivalents for the
 period                                      (266,168)            (348,852)

Cash and cash equivalents,
 beginning of period                        1,101,714            1,184,398
                                  -----------------------------------------
Cash and cash equivalents, end of
 period                             $         835,546    $         835,546
                                  -----------------------------------------
                                  -----------------------------------------


As at                               February 28, 2009    November 29, 2008
---------------------------------------------------------------------------

Cash and cash equivalents           $         835,546    $       1,101,714
Short-term investments                        682,666              574,279
Long-term investments                         720,635              812,638
                                  -----------------------------------------
                                    $       2,238,847    $       2,488,631
                                  -----------------------------------------
                                  -----------------------------------------

     Contacts:
     Media Contact:
     Marisa Conway
     Brodeur (PR Agency for RIM)
     212-336-7509
     mconway@brodeur.com
      
     Investor Contact:
     RIM Investor Relations
     519-888-7465
     investor_relations@rim.com