You would think that gaining 107% growth on last year’s revenue would be something worth bragging about, but apparently analysts were expecting a little more from Research in Motion in the Q1 earnings report issued yesterday, and as a result shares dropped 7.8% overnight. Subscribers were up by 2.3 million, totaling 16 million, and revenue hit $2.24 billion for the quarter. Analysts were expecting $2.27 billion – not what you’d call a dramatic failure of expectations, but it seems like you either blow the expectations out of the water, or you disappoint… There’s not much gray area in between. Spending was a little higher due to BlackBerry Bold marketing, and the incoming 3G iPhone has stockholders a little shakey. Last week RIM’s stock hit a lofty $147, so this is a bit of a downer to follow up with, but c’mon, the Bold is coming up this quarter, which will do its fair share of impressing.
Research In Motion Reports First Quarter Results
Waterloo, ON – Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM), a world leader in the mobile communications market, today reported first quarter results for the three months ended May 31, 2008 (all figures in U.S. dollars and U.S. GAAP).
Revenue for the first quarter of fiscal 2009 was $2.24 billion, up 19% from $1.88 billion in the previous quarter and up 107% from $1.08 billion in the same quarter of last year. The revenue breakdown for the quarter was approximately 82% for devices, 13% for service, 3% for software and 2% for other revenue. During the quarter, RIM shipped approximately 5.4 million devices.
Approximately 2.3 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 16 million.
“We are pleased to report another record quarter with revenue increasing 107% as the popularity of the BlackBerry platform continued to spread in business, government and consumer segments. Our comprehensive technology and business strategies continue to reap strong results in the market and RIM is well positioned to build on its momentum throughout the remainder of fiscal 2009,” said Jim Balsillie, Co-CEO at Research In Motion. “As we prepare this summer to ship our 40 millionth BlackBerry smartphone, we continue to steadily scale our business and partnerships to support the opportunities ahead in this thriving sector.”
Net income for the quarter was $482.5 million, or $0.84 per share diluted, compared with net income of $412.5 million, or $0.72 per share diluted, in the prior quarter and net income of $223.2 million, or $0.39 per share diluted, in the same quarter last year.
Revenue for the second quarter of fiscal 2009 ending August 30, 2008 is expected to be in the range of $2.55-$2.65 billion. Net subscriber account additions in the second quarter are expected to be approximately 2.6 million. Earnings per share for the second quarter are expected to be in the range of $0.84-$0.89 per share diluted.
The total of cash, cash equivalents, short-term and long-term investments was $2.08 billion as at May 31, 2008, compared to $2.34 billion at the end of the previous quarter, a decrease of $267 million over the prior quarter. Uses of cash in the quarter included the payment of Canadian income tax of approximately $460 million and capital and intangible expenditures of approximately $293 million.
The replay of the company’s Q1 conference call can be accessed after 7:00 pm (eastern), June 25, 2008 until midnight (eastern), July 10, 2008. It can be accessed by dialing 416-640-1917 and entering passcode 21252982#. The conference will also appear on the RIM web site, live at 5:00 pm (eastern) and archived at http://www.rim.com/investors/events/index.shtml.