Research In Motion Limited (RIM), a world leader in the mobile communications market, today reported third quarter results for the three months ended November 30, 2000. (all figures in US $ and Canadian GAAP)
Revenue for the third quarter of fiscal 2001 was $61.6 million. This marks a 45% increase over the prior quarter's revenue of $42.5 million and a 160% increase over the $23.7 million generated in the third quarter of last year. BlackBerry(r) subscriber growth continues to be a main revenue driver. BlackBerry accounted for approximately 59% of the Company's quarterly revenue. RIM Wireless Handhelds accounted for 35% and OEM radio modems accounted for 6%.
"BlackBerry demand continues to ramp beyond our expectations," said Jim Balsillie, Chairman and Co-CEO. "The market has accepted BlackBerry as the clear leader in wireless email and we are working hard to ensure that we are able to continue on our current growth path. Strong revenue growth and execution of our business plan continue to be our key focus."
Net income for the quarter was $1.5 million ($0.02 per share basic and fully diluted) compared with a net loss of $1.6 million in the prior quarter and a net income of $3.2 million in the same quarter last year.
Gross research and development expenditures for the quarter were $6.7 million, or 11% of revenue, compared to $5.3 million in the prior quarter, or 13% of revenue, and $3.3 million, or 14% of revenue, in the third quarter last year.
Selling, marketing and administration expenses were $16.9 million, or 27% of revenue, for the quarter compared to $15.7 million, or 37% of revenue in the previous quarter and $3.5 million, or 15% of revenue, in the third 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.
Cash, cash equivalents and marketable securities were $733.9 million at November 30, 2000 as compared to $183.8 million in the previous quarter. A completed offering of 6,000,000 common shares during the quarter, closing for net proceeds of $585.3 million, accounted for the increase.
"The third quarter was successful by all accounts," said Dennis Kavelman, Chief Financial Officer. "It demonstrated sustained revenue growth, execution of key business objectives, as well as the completion of a significant financing round intended to provide the resources necessary for RIM's next growth stage. We are targeting continued growth in the fourth quarter and next fiscal year."
Highlights of the third quarter:
America Online, Inc. announced availability of AOL Mobile CommunicatorSM, which provides wireless access to AOL email and instant messaging through RIM 950 Wireless Handheld technology.
Following successful market tests earlier this year, EarthLink announced its launch of the BlackBerry wireless email solution as a kick off to the Company's EarthLink Everywhere initiative. America's second largest Internet service provider, EarthLink brings the Internet to more than 4.6 million subscribers.
BellSouth Wireless Data renewed its reselling agreement with RIM with a supply agreement for 150,000 RIM Wireless Handhelds. As part of the agreement, RIM also announced a distribution agreement to allow BellSouth to directly offer BlackBerry to its corporate customers, significantly expanding RIM's distribution for the BlackBerry solution.
The RIM 857 Wireless Handheld was introduced for use over the Motient wireless data network in the US and the Bell Mobility ARDIS network in Canada. As part of the launch, RIM announced a new agreement to supply 25,000 RIM 857 Wireless Handhelds and 25,000 RIM 850 Wireless Handhelds to Motient. RIM also announced a supply agreement with Bell Mobility.
Paradigm4 announced it will resell the BlackBerry wireless email solution including RIM's complete line of wireless handhelds. Paradigm4 plans to complement the BlackBerry solution with value-added services, support and industry-specific application development, such as the "E-Attach4" service (from Equinox Solutions Inc.) which allows users to view email attachments on their BlackBerry Wireless Handheld.
Information Builders and RIM announced a strategic alliance to jointly market WebFOCUS-based applications integrated with BlackBerry. WebFOCUS is an integrated suite of Business Intelligence tools through which organizations can deliver information easily and instantly to management, employees, customers, partners and vendors.
Highlights subsequent to quarter end:
QUALCOMM and RIM announced a Code Division Multiple Access (CDMA) subscriber unit license agreement. RIM was granted a license under QUALCOMM's CDMA technology and patents to develop, manufacture and sell subscriber products for CDMA and 1xEV wireless applications in North America.
RIM announced an expanded business relationship with Motient Corporation, whereby RIM will resell Motient's wireless data network services in conjunction with BlackBerry through RIM's distribution channels. Fifty thousand BlackBerry subscribers are expected to be added to the Motient network within the next 12 months. This sales activity is incremental to RIM Wireless Handhelds sold through Motient's distribution channel.
Microcell Connexions Inc. and RIM announced a wholesale agreement whereby RIM will purchase airtime and services from Microcell in order to offer RIM Wireless Handheld service over the company's Canadian General Packet Radio Service (GPRS) network.
RIM announced the availability of BlackBerry to US Army representatives through an agreement with Intelligent Decisions, a systems integrator specializing in IT solutions for customers in the federal government, including many in the intelligence community. BlackBerry will be offered through Intelligent Decisions' Army Portable-3 contract, which is available to the US Army, DoD agencies, and all Federal Civilian agencies.