WATERLOO, ONTARIO--(Marketwire - March 24, 2011) - Research In Motion Limited (RIM) (NASDAQ:RIMM)(TSX:RIM), a world leader in the mobile communications market, today reported fourth quarter results for the three months and fiscal year ended February 26, 2011 (all figures in U.S. dollars and U.S. GAAP).


  • Record BlackBerry® smartphone shipments of 52.3 million grew 43% over fiscal 2010
  • Fiscal 2011 revenue grew 33% over fiscal 2010 to $19.9 billion and earnings per share grew 47% over the prior fiscal year to $6.34 per share diluted
  • Ongoing investment in PlayBook and QNX-based platform development in Q1 with PlayBook launch date of April 19th
  • BlackBerry was the number one selling smartphone brand in the United States1, Canada1, Latin America1 and the UK2 for calendar 2010

Q4 and Fiscal 2011 Results:

Revenue for the fiscal year ended February 26, 2011 was $19.9 billion, up 33% from $15 billion last year. Revenue for the fourth quarter of fiscal 2011 was $5.6 billion, up 1% from $5.5 billion in the previous quarter and up 36% from $4.1 billion in the same quarter of last year. The revenue breakdown for the quarter was approximately 81% for devices, 16% for service, and 3% for software and other revenue. During the quarter, RIM shipped approximately 14.9 million BlackBerry smartphones for a total of 52.3 million smartphones in fiscal 2011.

"We are pleased to report record shipments and financial performance in fiscal 2011," said Jim Balsillie, Co-CEO at Research In Motion. "As we enter fiscal 2012, RIM is in an excellent position to benefit from the continuing convergence of the mobile communications and mobile computing markets. We are laying a strong foundation for RIM's expanding market opportunity through focused investments and we are extremely excited about our smartphone, tablet and platform roadmaps."

Net income for fiscal 2011 was $3.4 billion, or $6.34 per share diluted, up 47% over fiscal 2010. The Company's net income for the quarter was $934 million, or $1.78 per share diluted, compared with net income of $911 million, or $1.74 per share diluted, in the prior quarter and net income of $710 million, or $1.27 per share diluted, in the same quarter last year. 

The total of cash, cash equivalents, short-term and long-term investments was $2.7 billion as of February 26, 2011, compared to $2.5 billion at the end of the previous quarter, an increase of $227 million from the prior quarter. Cash flow from operations in Q4 was approximately $1.0 billion. Uses of cash included intangible asset additions of approximately $365 million, capital expenditures of approximately $304 million and business acquisitions of approximately $161 million.

FY2012 and Q1 Outlook:

For the full year fiscal 2012, RIM expects earnings per share to be in excess of $7.50 fully diluted. Revenue for the first quarter of fiscal 2012 ending May 28, 2011 is expected to be in the range of $5.2-$5.6 billion. Gross margin percentage for the first quarter is expected to be approximately 41.5%. Earnings per share for the first quarter are expected to be in the range of $1.47 -$1.55 per share diluted. This guidance range reflects a mix shift in handset towards lower ASP products in the first quarter and an increased level of investment in Research and Development and Sales and Marketing related to our tablet and platform initiatives. The guidance range is slightly wider than normal to reflect the risk of potential disruption in RIM's supply chain as a result of the recent earthquake in Japan.

Conference Call and Webcast:

A conference call and live webcast will be held beginning at 5 pm ET, March 24, 2011, which can be accessed by dialing 1-800-814-4859 (North America), 416-644-3414 (outside North America). The replay of the company's Q4 conference call can be accessed after 7 pm ET, March 24, 2011 until midnight ET, April 7, 2011. It can be accessed by dialing 416-640-1917 and entering passcode 4310316#. 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 (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry® solution in 1999. Today, BlackBerry products and services are used by millions of customers around the world to stay connected to the people and content that matter most throughout their day. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe, Asia Pacific and Latin America. 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 and earnings expectations for the first quarter of fiscal 2012, its current expectations for earnings growth for the full year of fiscal 2012, anticipated customer demand, the potential growth opportunity from the convergence of mobile communications and mobile computing markets, product initiatives and timing, and anticipated growth, opportunities relating to new products and technology. The terms and phrases "growth opportunity", "capitalize", "foundations for the future", "expect", 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: risks relating to RIM's intellectual property rights; RIM's ability to enhance current products and develop new products and services; risks related to delays in new product launches; risks related to intense competition; RIM's reliance on carrier partners, third-party manufacturers, third-party network developers and suppliers, including potential risks to RIM's supply chain for functional components caused by the recent earthquake in Japan; risks relating to network disruptions and other business interruptions; RIM's reliance on key personnel; risks related to third party manufacturers and RIM's ability to manage its production processes; risks related to RIM's international operations; security risks and risks related to encryption technology; potential defects in RIM's products; RIM's ability to manage inventory and other asset risk; RIM's ability to maintain and enhance its brand; RIM's ability to successfully enter the tablet market; RIM's ability to manage growth; and difficulties in forecasting RIM's quarterly financial results, particularly over longer periods given the rapid technological changes, evolving industry standards, intense competition and short product life cycles that characterize the wireless communications industry. 
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.

1 IDC Worldwide Mobile Phones Quarterly Tracker - Final data - Q4 2010

2 GfK RT, Smartphones, Volume Sales, 2010 and Q4 2010

Research In Motion Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions except for share and per share amounts) (unaudited)
Consolidated Statements of Operations
    For the three months ended       For the year ended  
    February     November     February       February     February  
    26, 2011     27, 2010     27, 2010       26, 2011     27, 2010  
Revenue $ 5,556   $ 5,495   $ 4,080     $ 19,907   $ 14,953  
Cost of sales   3,103     3,101     2,217       11,082     8,369  
Gross margin   2,453     2,394     1,863       8,825     6,584  
    Gross margin %   44.2 %    43.6   45.7     44.3 %    44.0
Operating expenses                                
  Research and development   383     357     267       1,351     965  
  Selling, marketing and administration   705     666     498       2,400     1,907  
  Amortization   125     115     86       438     310  
  Litigation   -     -     -       -     164  
    1,213     1,138     851       4,189     3,346  
Income from operations   1,240     1,256     1,012       4,636     3,238  
  Investment income (loss), net (1)   3     (11)     5       8     28  
Income before income taxes   1,243     1,245     1,017       4,644     3,266  
Provision for income taxes   309     334     307       1,233     809  
Net income $ 934   $ 911   $ 710     $ 3,411   $ 2,457  
Earnings per share                                
  Basic $ 1.79   $ 1.74   $ 1.27     $ 6.36   $ 4.35  
  Diluted $ 1.78   $ 1.74   $ 1.27     $ 6.34   $ 4.31  
Weighted-average number of shares outstanding (000's)                                
  Basic   522,764     522,436     557,114       535,986     564,492  
  Diluted   524,334     524,406     561,130       538,330     569,759  
Total common shares outstanding (000's)   523,869     521,776     557,328       523,869     557,328  
(1) For the three months ended November 27, 2010, investment income (loss), net reflects a charge of approximately $17 million relating to the impairment of certain investments.
Research In Motion Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions) (unaudited)
Consolidated Balance Sheets
  As at  
  February 26,   February 27,  
    2011     2010  
    Cash and cash equivalents $ 1,791   $ 1,551  
    Short-term investments   330     361  
    Accounts receivable, net   3,955     2,594  
    Other receivables   324     206  
    Inventories   618     660  
    Other current assets   241     247  
    Deferred income tax asset   229     194  
    7,488     5,813  
Long-term investments   577     958  
Property, plant and equipment, net   2,504     1,957  
Intangible assets, net   1,798     1,326  
Goodwill   508     151  
  $ 12,875   $ 10,205  
    Accounts payable $ 832   $ 615  
    Accrued liabilities   2,511     1,638  
    Income taxes payable   179     96  
    Deferred revenue   108     68  
    Deferred income tax liability   -     15  
    3,630     2,432  
Deferred income tax liability   276     141  
Income taxes payable   31     29  
    3,937     2,602  
Shareholders' Equity            
Capital stock and additional paid-in capital   2,359     2,372  
Treasury stock   (160 )   (94 )
Retained earnings   6,749     5,274  
Accumulated other comprehensive income (loss)   (10 )   51  
    8,938     7,603  
  $ 12,875   $ 10,205  
Research In Motion Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions) (unaudited)
Consolidated Statements of Cash Flows
   For the year ended 
    February 26   February 27 ,
    2011     2010  
Cash flows from operating activities            
Net income $ 3,411   $ 2,457  
Adjustments to reconcile net income to net cash provided by operating activities:            
  Amortization   927     616  
  Deferred income taxes   92     51  
  Income taxes payable   2     5  
  Stock-based compensation   72     58  
  Other   1     9  
Net changes in working capital items   (496 )   (161 )
Net cash provided by operating activities   4,009     3,035  
Cash flows from investing activities            
Acquisition of long-term investments   (784 )   (863
Proceeds on sale or maturity of long-term investments   893     473  
Acquisition of property, plant and equipment   (1,039 )   (1,009 )
Acquisition of intangible assets   (557 )   (421
Business acquisitions, net of cash acquired   (494   (143
Acquisition of short-term investments   (503   (477
Proceeds on sale or maturity of short-term investments   786     970  
Net cash used in investing activities   (1,698 )   (1,470 )
Cash flows from financing activities            
Issuance of common shares   67     30  
Tax benefits (deficiencies) related to stock-based compensation   (1 )   2  
Purchase of treasury stock   (76 )   (94 )
Common shares repurchased   (2,077   (775
Repayment of debt   -     (6
Net cash used in financing activities   (2,087 )   (843
Effect of foreign exchange gain (loss) on cash and cash equivalents   16     (6 )
Net increase in cash and cash equivalents for the year   240     716  
Cash and cash equivalents, beginning of year   1,551     835  
Cash and cash equivalents, end of year $ 1,791   $ 1,551  
    February 26,     November 27,  
As at   2011     2010  
Cash and cash equivalents $ 1,791   $ 1,435  
Short-term investments   330     340  
Long-term investments   577     696  
  $ 2,698   $ 2,471  

Contact Information: Media Contact:
Marisa Conway
Brodeur (PR Agency for RIM)
(212) 336-7509
Investor Contact:
RIM Investor Relations
(519) 888-7465