Issue #2003 - 25
Sept. 12, 2003)
RIM Reports Upbeat Second Quarter Results
Waterloo, ON - Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM), a world leader in the mobile communications market, today reported preliminary second quarter results for the period ended August 30, 2003 (all figures in U.S. dollars and U.S.
Based on preliminary financial data, RIM expects revenue for the second quarter to be recorded in the range of $123-$126 million, exceeding the previously forecasted revenue range of $105-$115 million. Net income for the second quarter is also expected to exceed initial forecasts. Subject to final review, RIM now anticipates diluted earnings to be in the range of $0.02-$0.05 per share.
Excluding the patent litigation provision, RIM expects adjusted diluted earnings to be between $0.07- $0.11 per share. The adjusted earnings per share data does not have any standardized meaning prescribed by GAAP and is not comparable to similar measures presented by other issuers. The litigation provision is expected to be lower than the prior quarter, resulting from adjustments to previous estimates for professional fees and interest.
RIM expects the number of net new BlackBerry® subscribers in the quarter to be between 94,000-97,000, which exceeds the previously forecasted range of 80,000-90,000 for the quarter. The BlackBerry subscriber base will now exceed 700,000 subscribers.
"RIM's business generated higher than expected revenue during the summer months resulting in a record quarter. The top-line growth together with prudent expense management also allowed us to significantly exceed our profitability targets," said Dennis Kavelman, Chief Financial Officer at RIM. "Global demand for BlackBerry accelerated in both enterprise and prosumer
(professional consumer, we guess - editor) market segments as RIM fulfilled orders to its carrier partners to satisfy new subscriber growth, hardware upgrade sales and retail channel expansion requirements."
For more information: http://www.rim.net
MobileInfo Comments and Advisory: RIM
got some bad press lately because of its problems with litigation
with NTP. However, customers and the market continues to vote in
favor of RIM.
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