Stay on Top of Recent M&A's with Breaking News Stories

Mergers & Acquisitions on Ulitzer

Subscribe to Mergers & Acquisitions on Ulitzer: eMailAlertsEmail Alerts newslettersWeekly Newsletters
Get Mergers & Acquisitions on Ulitzer: homepageHomepage mobileMobile rssRSS facebookFacebook twitterTwitter linkedinLinkedIn


Mergers & Acquisitions Authors: Pat Romanski, Bob Gourley, Jim Kaskade, David Skok, Liz McMillan

Related Topics: CEOs in Technology, Consumer Electronics, BlackBerry Breaking News, Mergers & Acquisitions on Ulitzer

News Item

Research In Motion Reports Second Quarter Results

Revenue for the second quarter of fiscal 2010 was $3.53 billion, up 3% from $3.42 billion in the previous quarter

Reconciliation of GAAP net income to adjusted net income
(United States dollars, in thousands except per share data)

                                                    For the quarter ended
                                                       August 29, 2009
                                                 Net Income     Diluted EPS
                                                ----------------------------
As reported                                       $ 475,621          $ 0.83

Adjustment:

Litigation, net of income tax(1)                    112,809            0.20
                                                ----------------------------
Adjusted                                          $ 588,430          $ 1.03
                                                ----------------------------
                                                ----------------------------

Note: Adjusted net income and adjusted diluted earnings per share do not
      have any standardized meaning prescribed by GAAP and thus are not
      comparable to similarly titled measures presented by other issuers.
      The company believes that the presentation of adjusted net income and
      adjusted diluted earnings per share enables the Company and its
      shareholders to better assess RIM's operating results relative to
      its operating results in prior periods and improves the comparability
      of the information presented. Investors should consider these
      non-GAAP financial measures in the context of RIM's GAAP results.

(1) In the second quarter of fiscal 2010, the Company settled all
    outstanding worldwide litigation with Visto Corporation for a total
    payment of $267.5 million of which $163.8 million ($112.8 million net of
    tax) was expensed as a litigation charge in the second quarter of
    fiscal 2010. The remainder of the payment was recorded as intangible
    assets. Further details of the settlement were disclosed in a press
    release dated July 16, 2009.

Revenue for the third quarter of fiscal 2010 ending November 28, 2009 is expected to be in the range of $3.60-$3.85 billion. Gross margin for Q3 is expected to be approximately 43%. Net subscriber account additions in the third quarter are expected to be in the range of 4.0-4.3 million. Earnings per share for the third quarter are expected to be in the range of $1.00-$1.08 per share diluted.

The total of cash, cash equivalents, short-term and long-term investments was $2.50 billion as at August 29, 2009, compared to $2.42 billion at the end of the previous quarter, an increase of $78.5 million over the prior quarter. Cash flow from operations in Q2 was approximately $564 million which was offset primarily by capital expenditures of approximately $307 million and intangible asset purchases of approximately $179 million.

A conference call and live webcast will be held beginning at 5 pm ET, September 24, 2009, which can be accessed by dialing 800-733-7571 (North America), 416-915-5761 (outside North America). The replay of the company's Q2 conference call can be accessed after 7 pm ET, September 24, 2009 until midnight ET, October 8, 2009. It can be accessed by dialing 416-640-1917 and entering passcode 21289982#. 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 (NASDAQ: RIMM) and the Toronto Stock Exchange (TSX: RIM). 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, earnings, net subscriber account additions and operating expense expectations for the third quarter of fiscal 2010, customer demand, penetration of new markets, product initiatives and anticipated growth. The terms and phrases "accelerating", "approaching", "continuing business momentum", "strong marketing support", "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 centre; 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 six months ended
              ------------------------------------ -------------------------
                August 29,     May 30,  August 30,    August 29,  August 30,
                     2009        2009        2008          2009        2008
----------------------------------------------------------------------------

Revenue       $ 3,525,692 $ 3,423,510 $ 2,577,330   $ 6,949,202 $ 4,819,895
Cost of sales   1,971,296   1,931,985   1,270,473     3,903,281   2,375,681
              ------------------------------------ -------------------------
Gross margin    1,554,396   1,491,525   1,306,857     3,045,921   2,444,214
              ------------------------------------ -------------------------
 Gross
  margin %           44.1%       43.6%       50.7%         43.8%       50.7%

Operating
 Expenses
 Research
  and
  development     235,571     219,777     181,347       455,348     309,123
 Selling,
  marketing
  and
  administ-
   ration         429,748     514,291     379,644       944,039     706,236
 Amortization      73,292      67,396      43,633       140,688      80,185
 Litigation       163,800           -           -       163,800           -
              ------------------------------------ -------------------------
                  902,411     801,464     604,624     1,703,875   1,095,544
              ------------------------------------ -------------------------

Income from
 operations       651,985     690,061     702,233     1,342,046   1,348,670

 Investment
  income            7,625       9,136      17,168        16,761      36,145
              ------------------------------------ -------------------------

Income before
 income taxes     659,610     699,197     719,401     1,358,807   1,384,815
              ------------------------------------ -------------------------

Provision for
 income taxes     183,989      56,167     223,855       240,156     406,754
              ------------------------------------ -------------------------
Net income    $   475,621 $   643,030 $   495,546   $ 1,118,651 $   978,061
              ------------------------------------ -------------------------
              ------------------------------------ -------------------------

Earnings per
 share
 Basic        $      0.84 $      1.13 $      0.88   $      1.97 $      1.73
              ------------------------------------ -------------------------
              ------------------------------------ -------------------------
 Diluted      $      0.83 $      1.12 $      0.86   $      1.95 $      1.70
              ------------------------------------ -------------------------
              ------------------------------------ -------------------------

Weighted
 average
 number of
 common
 shares
 outstanding
 (000's)
 Basic            567,789     566,787     564,899       567,288     564,222
 Diluted          573,565     573,259     574,831       573,441     574,738

Total
 common
 shares
 outstanding
 (000's)          568,219     567,368     565,370       568,219     565,370



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

                        Consolidated Balance Sheets

                                                  August 29,    February 28,
As at                                                  2009            2009
----------------------------------------------------------------------------

Assets
 Current
  Cash and cash equivalents                     $ 1,083,251     $   835,546
  Short-term investments                            580,921         682,666
  Trade receivables                               2,365,106       2,112,117
  Other receivables                                 248,162         157,728
  Inventory                                         572,761         682,400
  Other current assets                              189,676         187,257
  Deferred income tax asset                         175,568         183,872
                                               -----------------------------
                                                  5,215,445       4,841,586

Long-term investments                               833,575         720,635
Capital assets                                    1,737,403       1,334,648
Intangible assets                                 1,291,454       1,066,527
Goodwill                                            146,557         137,572
Deferred income tax asset                                 -             404
                                               -----------------------------
                                                $ 9,224,434     $ 8,101,372
                                               -----------------------------
                                               -----------------------------

Liabilities
 Current
  Accounts payable                              $   496,005     $   448,339
  Accrued liabilities                             1,603,842       1,238,602
  Income taxes payable                                    -         361,460
  Deferred revenue                                   66,912          53,834
  Deferred income tax liability                           -          13,116
                                               -----------------------------
                                                  2,166,759       2,115,351

Deferred income tax liability                        43,265          87,917
Income taxes payable                                 27,790          23,976
                                               -----------------------------
                                                  2,237,814       2,227,244
                                               -----------------------------

Shareholders' Equity
Capital stock                                     2,236,190       2,208,235
Treasury shares                                     (45,081)              -
Retained earnings                                 4,664,361       3,545,710
Additional paid-in capital                          139,113         119,726
Accumulated other comprehensive income (loss)        (7,963)            457
                                               -----------------------------
                                                  6,986,620       5,874,128
                                               -----------------------------
                                                $ 9,224,434     $ 8,101,372
                                               -----------------------------
                                               -----------------------------



                        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 six         For the six
                                           months ended        months ended
                                        August 29, 2009     August 30, 2008
----------------------------------------------------------------------------

Cash flows from operating activities
Net income                                  $ 1,118,651         $   978,061

Items not requiring an outlay of cash:
 Amortization                                   269,164             125,995
 Deferred income taxes                          (19,621)            (18,678)
 Income taxes payable                             3,814              (2,204)
 Stock-based compensation                        25,747              19,600
 Other                                           (7,915)             12,080
Net changes in working capital items           (194,001)           (515,775)
                                       -------------------------------------
Net cash provided by operating
 activities                                   1,195,839             599,079
                                       -------------------------------------

Cash flows from investing activities
Acquisition of long-term investments           (369,111)           (173,642)
Proceeds on sale or maturity of
 long-term investments                          183,847             143,674
Acquisition of capital assets                  (554,558)           (386,039)
Acquisition of intangible assets               (242,379)           (331,027)
Business Acquisitions                          (131,541)                  -
Acquisition of short-term investments          (279,226)           (335,768)
Proceeds on sale or maturity of
 short-term investments                         473,655             408,171
                                       -------------------------------------
Net cash used in investing activities          (919,313)           (674,631)
                                       -------------------------------------

Cash flows from financing activities
Issuance of common shares                        18,890              21,927
Excess tax benefits from stock-based
 compensation                                     2,705              12,146
Purchase of treasury shares                     (45,081)                  -
Repayment of debt                                (6,099)               (166)
                                       -------------------------------------
Net cash (used in) provided by
 financing activities                           (29,585)             33,907
                                       -------------------------------------

Effect of foreign exchange gain on
 cash and cash equivalents                          764             (11,679)
                                       -------------------------------------
Net increase (decrease) in cash and
 cash equivalents for the period                247,705             (53,324)
Cash and cash equivalents, beginning
 of period                                      835,546           1,184,398
                                       -------------------------------------
Cash and cash equivalents, end
 of period                                  $ 1,083,251         $ 1,131,074
                                       -------------------------------------
                                       -------------------------------------



As at                                   August 29, 2009        May 30, 2009
----------------------------------------------------------------------------

Cash and cash equivalents                   $ 1,083,251         $ 1,135,325
Short-term investments                          580,921             619,914
Long-term investments                           833,575             663,990
                                       -------------------------------------
                                            $ 2,497,747         $ 2,419,229
                                       -------------------------------------

 

Contacts:
Media Contact:
Brodeur (PR Agency for RIM)
Marisa Conway
(212) 336-7509
[email protected]

Investor Contact:
RIM Investor Relations
(519) 888-7465
[email protected]

More Stories By Yeshim Deniz

News Desk compiles and publishes breaking news stories, press releases and latest news articles as they happen.