Press release
Waterloo, ON - Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM), a world leader in the mobile communications market, today reported second quarter results for the three months ended August 28, 2010 (all figures in U.S. dollars and U.S. GAAP).
Highlights:
- Revenue grew 31% over the same quarter last year to $4.62 billion
- Earnings per share in the second quarter increased 76% to $1.46 over the second quarter last year
- BlackBerry smartphone shipments grew more than 45% over the same quarter last year to 12.1 million and RIM has shipped approximately 115 million BlackBerry smartphones to date
- BlackBerry subscriber account base grew approximately 56% over the prior year to over 50 million
Q2 Results:
Revenue for the second quarter of fiscal 2011 was $4.62 billion, up 9% from $4.24 billion in the previous quarter and up 31% from $3.53 billion in the same quarter of last year. The revenue breakdown for the quarter was approximately 79% for devices, 17% for service, 1% for software and 3% for other revenue. During the quarter, RIM shipped approximately 12.1 million devices.
Approximately 4.5 million net new BlackBerry® subscriber accounts were added in the quarter. At the end of the quarter, the total BlackBerry subscriber account base was over 50 million.
"RIM set another new record in the quarter by shipping over 12 million BlackBerry smartphones. This accomplishment and RIM's solid financial results during the second quarter were driven by effective business execution and strong demand for RIM's portfolio of BlackBerry smartphones and services in markets around the world," said Jim Balsillie, Co-CEO at Research In Motion. "We expect a continuation of this momentum in the third quarter as we extend the rollout of new products including the BlackBerry Torch into additional markets and benefit from heavy promotional activities and increasing customer demand as we head into the holiday buying season."
The Company's net income for the quarter was $796.7 million, or $1.46 per share diluted, compared with net income of $768.9 million, or $1.38 per share diluted, in the prior quarter and net income of $475.6 million, or $0.83 per share diluted, in the same quarter last year. The impact of Q2 share repurchases on second quarter fiscal 2011 earnings per share was approximately $0.02 per share.
The total of cash, cash equivalents, short-term and long-term investments was $2.03 billion as at August 28, 2010, compared to $3.27 billion at the end of the previous quarter, a decrease of $1.24 billion from the prior quarter. Cash flow from operations in Q2 was approximately $938 million. Uses of cash included common share repurchases of approximately $1.5 billion, business acquisitions of approximately $320 million, capital expenditures of approximately $200 million and intangible asset purchases of approximately $100 million.
1 Earnings per share in the second quarter of fiscal 2010 included a charge of $0.20 relating to the settlement of all outstanding worldwide patent litigation with Visto Corporation.
Q3 Outlook
Revenue for the third quarter of fiscal 2011 ending November 27, 2010 is expected to be in the range of $5.30-$5.55 billion. Gross margin for Q3 is expected to be approximately 42%. Net subscriber account additions in the third quarter are expected to be in the range of 5.0-5.4 million. Earnings per share for the third quarter are expected to be in the range of $1.62-$1.70 per share diluted.
