6-K 1 rim6k.htm FORM 6-K
 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 

 

For the month of,

April

 

2007

Commission File Number

000-29898

 

 

 

Research In Motion Limited

(Translation of registrant’s name into English)

 

295 Phillip Street, Waterloo, Ontario, Canada N2L 3W8

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40F:

 

 

Form 20-F

 

Form 40-F

X

 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):          

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):           

 

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

 

Yes

 

No

X

 

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_______________

 

 

 


 

DOCUMENTS INCLUDED AS PART OF THIS REPORT

 

 

Document

 

 

 

1

News Release dated April 11,2007 (“Research In Motion Reports Preliminary Fourth Quarter and Year-End Results for Fiscal 2007 and Provides Status Update”)

 

 


 

DOCUMENT 1

 


 

 


                                                                                                                                                                                                           

April 11, 2007

FOR IMMEDIATE RELEASE

 

RESEARCH IN MOTION REPORTS PRELIMINARY FOURTH QUARTER AND YEAR-END RESULTS FOR FISCAL 2007 AND PROVIDES STATUS UPDATE

 

Waterloo, Ontario – Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM), a world leader in the mobile communications market, today reported preliminary results for the three months and fiscal year ended March 3, 2007 (all figures in U.S. dollars). This press release will also serve as the Company’s regular, bi-weekly status update pursuant to the alternative information guidelines of the Ontario Securities Commission (the “OSC”) that would have otherwise been issued on April 13, 2007. These guidelines contemplate that the Company will normally provide bi-weekly updates on its affairs until such time as the Company is current with its filing obligations under Canadian securities laws.

 

The results reported today are preliminary pending the U.S. GAAP restatement related to RIM’s historical non-cash charges associated with past option grants. As previously disclosed, while the review of stock option granting practices by the Special Committee of RIM’s Board of Directors is now complete, the Special Committee and its advisors, together with the Company and the Company’s external auditors, continue to do the work necessary to complete the restatement of RIM’s previously filed financial statements and to file its interim financial statements for the second and third quarters of fiscal 2007. As previously disclosed, the Company had originally anticipated updating its filings with the Canadian securities regulatory authorities and the United States Securities and Exchange commission (the “SEC”) prior to its fiscal year end of March 3, 2007. Despite best efforts, the Company determined that additional time is required for the Company and its advisors to prepare the updated filings and for the Company’s external auditors to complete their review of those filings. It is the Company’s belief that the impact of any restatement on U.S. GAAP and adjusted operating results for fiscal 2007, including the fourth quarter, will be immaterial. RIM will file its restated financial statements as well as its financial statements for the second and third quarters of fiscal 2007, and the fiscal year ended March 3, 2007 as soon as possible. The Company has determined that the accounting impact on RIM’s most recently filed Canadian GAAP statements do not result in a material adjustment and therefore the Company does not intend to restate the previously filed Canadian GAAP financial statements.

 

The Company has had communications with both staff of the OSC and the SEC about its internal review. As previously disclosed, the SEC has been conducting an informal inquiry in connection with the Company’s stock option granting practices. The Company understands that the informal inquiry has been converted to a formal investigation. The Company believes that the focus of this investigation is substantially the same as the informal inquiry. The Company intends to continue to cooperate with the OSC and SEC.

 

Revenue for the fourth quarter of fiscal 2007 was $930.4 million, up 66% from $561.2 million in the same quarter of last year. The revenue breakdown for the quarter was approximately 73% for handhelds, 19% for service, 5% for software and 3% for other revenue. Revenue for the fiscal year ended March 3, 2007 was $3.0 billion, up 47% from $2.1 billion last year. RIM shipped approximately 6.4 million devices during fiscal 2007.

 

Approximately 1.02 million BlackBerry subscriber accounts were added in the quarter. At the end of the quarter, the total BlackBerry subscriber account base was approximately 8 million. Revenue and subscriber account additions will not be impacted by the restatement referenced above.

 


 

“We are extremely pleased to report record results with $3 billion of revenue generated in the fiscal year and over one million BlackBerry subscriber accounts added within the fourth quarter alone,” said Jim Balsillie, Co-CEO at Research In Motion. “We are entering fiscal 2008 with very healthy subscriber growth momentum, a strong slate of products and services, exceptional partnerships and a growing market leadership position. We look forward to building on this momentum and further extending the market opportunity for RIM and its partners in the coming year.”

 

Preliminary GAAP net income for the quarter was $187.9 million, or $0.99 per share diluted. Excluding regular stock option expense of $4.9 million, preliminary adjusted net income was $192.8 million, or $1.01 per share diluted. The preliminary adjusted net income and preliminary adjusted net income per share do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other issuers. The adjusted measures should be considered in the context of RIM’s preliminary GAAP results.

 

Revenue for the first quarter of fiscal 2008 ending June 2, 2007 is expected to be in the range of $1.025 billion-$1.075 billion. Subscriber account additions in the first quarter are expected to be approximately in the range of 1.125-1.15 million. GAAP earnings per share for the first quarter are expected to be in the range of $0.99-$1.07 per share diluted. Adjusted earnings per share for the first quarter, which excludes regular stock option expense of approximately $5 million, are forecast to be in the range of $1.01-$1.09 per share diluted.

 

In RIM’s fiscal 2007 fourth quarter, administration expense was higher than forecast as the Company incurred legal, accounting and other professional costs in connection with the voluntary internal review undertaken by the Company of its stock option granting practices and related accounting and in connection with the restatement of the Company’s historical financial statements resulting from that review. A similar level of administration expense is also included in the forecast for the first quarter of fiscal 2008. As disclosed in the Company’s March 5, 2007 press release, Jim Balsillie and Mike Lazaridis voluntarily offered to assist RIM in defraying costs incurred in connection with the review and the restatement by contributing up to CAD $10 million (up to CAD $5 million each) of those costs. RIM’s preliminary fourth quarter and year-end accounting does not reflect the contributions to be made by Mr. Balsillie and Mr. Lazaridis, which are expected to be recorded in fiscal 2008. 

 

The total of cash, cash equivalents, short-term and long-term investments was $1.4 billion as at March 3, 2007, compared to $1.3 billion at the end of the previous quarter, an increase of $93 million over the prior quarter.  

 


 

Reconciliation of preliminary GAAP net income to preliminary adjusted net income

(United States dollars, in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended March 3, 2007

 

 

 

 

 

 

Preliminary GAAP net income, as reported

 

 

 

$

187,928

 

 

 

 

 

 

Adjustment:

 

 

 

 

 

 

 

 

 

 

 

Regular stock option expense, net of tax

 

 

 

 

4,900

Preliminary adjusted net income

 

 

 

$

192,828

 

 

 

 

 

 

Preliminary adjusted net income per share, diluted

 

 

 

$

1.01

 

 

 

 

 

 

Note: Preliminary adjusted net income and preliminary adjusted net income per share do not have any standardized meaning prescribed by GAAP and thus are not comparable to similar measures presented by other issuers. Investors are encouraged to consider this adjusted measure in the context of RIM’s preliminary GAAP results.

 

Highlights of the fourth quarter:

 

 

AT&T launched the BlackBerry 8800 in the U.S.

 

T-Mobile launched the white BlackBerry Pearl in the U.S.

 

Alltel Wireless launched the BlackBerry 8703e in the U.S.

 

Cbeyond launched the BlackBerry 8703e in the U.S.

 

Rogers Wireless launched the BlackBerry 8800 in Canada

 

Telcel launched the BlackBerry Pearl in Mexico

 

CLARO launched the BlackBerry Pearl in Brazil, Chile and Peru

 

CTI launched the BlackBerry Pearl in Argentina

 

Comcel launched the BlackBerry Pearl in Colombia

 

TSTT launched the BlackBerry Pearl in Trinidad & Tobago

 

Setar launched the BlackBerry Pearl in Aruba

 

UTS launched the BlackBerry Pearl in the Dutch Antilles

 

Telecom Personal launched the BlackBerry Pearl in Argentina

 

Telefónica launched the BlackBerry Pearl in Ecuador and Uruguay

 

Cable and Wireless launched the BlackBerry Pearl in Barbados, Cayman Islands, Jamaica and Panama

 

Orange launched the BlackBerry 8800 in France, Spain and the UK

 

T-Mobile launched the BlackBerry 8800 in Germany, Austria and the UK

 

Vodafone launched the BlackBerry 8800 in the UK, Germany, France, Spain, Italy and the Netherlands

 

O2 launched the BlackBerry 8800 in the UK and Ireland

 

Movistar launched the BlackBerry 8800 in Spain

 


 

 

Mobilkom launched the BlackBerry 8800 in Austria

 

Swisscom launched the BlackBerry Pearl and the BlackBerry 8800 in Switzerland

 

Proximus launched the BlackBerry 8800 in Belgium

 

LUXGSM launched the BlackBerry 8800 in Luxembourg

 

Tango launched the BlackBerry Pearl in Luxembourg

 

Bouygues Telecom launched the BlackBerry Pearl in France

 

KPN launched the BlackBerry Pearl in the Netherlands

 

O2 launched the BlackBerry Pearl in Germany and the Czech Republic

 

Orange launched the BlackBerry Pearl in France, Spain, Belgium and Switzerland

 

Vodafone launched the BlackBerry Pearl in Croatia, Ireland, Sweden, Portugal, Luxemburg, Bulgaria and Switzerland

 

Vipnet launched the BlackBerry Pearl in Croatia

 

Wind launched the BlackBerry 8700g in Italy

 

Fastlink and EMS launched BlackBerry in Jordan

 

Turkcell launched the BlackBerry Pearl in Turkey

 

Etisalat launched the BlackBerry Pearl in UAE

 

Telstra launched the BlackBerry Pearl in Australia

 

Vodafone launched the BlackBerry Pearl in New Zealand

 

Hutch launched BlackBerry in India

 

Peoples launched BlackBerry in Hong Kong

 

XL launched BlackBerry in Indonesia

 

Airtel launched the BlackBerry Pearl in India

 

StarHub launched the BlackBerry Pearl in Singapore

 

M1 launched the BlackBerry Pearl in Singapore

 

Indosat launched the BlackBerry Pearl in Indonesia

 

Maxis launched the BlackBerry Pearl in Malaysia

 

AIS launched the BlackBerry Pearl in Thailand

 

True Move launched the BlackBerry Pearl in Thailand

 

Smart launched the BlackBerry Pearl in the Philippines

 

Globe launched the BlackBerry Pearl in the Philippines

 

RIM announced plans to offer BlackBerry Connect software on five new Microsoft Windows Mobile-based devices from HTC

 

Dopod International launched BlackBerry Connect in Asia.

 

Digicel launched BlackBerry Connect for the Sony Ericsson P990 in the Caribbean

 

Fido launched BlackBerry Connect for the Nokia E62 in Canada

 

BlackBerry ISV Alliance members continued to build upon the BlackBerry platform with a range of new products and services that help customers extend their wireless data strategies beyond wireless email.

 

Highlights Subsequent to Quarter End:

 

RIM opened new BlackBerry APIs to support growth in mobile applications

 

AT&T launched the red BlackBerry Pearl in the U.S.

 

SunCom launched the BlackBerry Pearl in the U.S.

 

Cincinnati Bell launched the BlackBerry Pearl in the U.S.

 

TDC launched the BlackBerry Pearl in Denmark

 

MTN Nigeria launched the BlackBerry Enterprise Solution

 

MTC-Vodafone launched the BlackBerry Pearl and the BlackBerry 8707 in Bahrain

 

CSL launched the white BlackBerry Pearl and the BlackBerry 8800 in Hong Kong

 


 

 

Three launched the white BlackBerry Pearl and the BlackBerry 8800 in Hong Kong

 

SmarTone-Vodafone launched the white BlackBerry Pearl and the BlackBerry 8800 in Hong Kong

 

Nextel launched BlackBerry in Argentina and Brazil

 

TIM launched the BlackBerry Pearl in Brazil

 

Telefónica launched the BlackBerry Pearl in Argentina and Colombia

 

There is no other material information concerning the affairs of the Company at this time that has not been generally disclosed.

 

The replay of the company’s Q4 conference call can be accessed after 7 p.m. (eastern), April 11, 2007 until midnight (eastern), April 25, 2007. It can be accessed by dialing 416-640-1917 and entering passcode 21221682#. 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 until midnight April 25, 2007.

 

About Research In Motion (RIM)

Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity. RIM’s portfolio of award-winning products, services and embedded technologies are used by thousands of organizations around the world and include the BlackBerry® wireless platform, the RIM Wireless Handheld™ product line, software development tools, radio-modems and software/hardware licensing agreements. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe and Asia Pacific. 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.

 

Media Contact:

Marisa Conway

Brodeur for RIM

212.771.1924

mconway@brodeur.com

 

Investor Contact:

RIM Investor Relations

519.888.7465

investor_relations@rim.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 and earnings expectations for the first quarter of fiscal 2008, RIM’s views regarding anticipated growth in subscribers, plans relating to RIM, including plans for new product launches and its expectations regarding its carrier partners, and statements relating to RIM’s management-initiated, voluntary internal review of its stock option granting practices, including statements regarding the anticipated timing of filing financial statements and the additional work required to complete such filings, and the anticipated financial impact of the restatement on GAAP and adjusted operating results for fiscal 2007, including the fourth quarter, and statements regarding RIM’s intention to provide regular updates to its shareholders. The terms and phrases, “it is the Company’s belief”, “will”, “healthy subscriber growth momentum”, “growing market leadership position”, “building on this momentum”, “further extending the market opportunity”, “expected”, “forecast” 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. 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 and uncertainties relating to RIM’s internal review of stock option granting practices including, further determinations made by the Special Committee, outside advisors, auditors and others, unanticipated developments and delays encountered in connection with RIM’s efforts to complete the restatement of its financial statements and its securities filings, developments relating to the SEC, the OSC or other regulators relating to RIM’s stock option granting practices, additional corrections that may be required based on factual findings and analysis following the date of this news release, risks associated with litigation relating to RIM’s stock option grants, and legal and accounting developments and guidance regarding stock option grants and the interpretation of such guidance; risks relating to RIM’s intellectual property rights; RIM’s ability to enhance current products and develop and introduce new products; RIM’s reliance on carrier partners, third-party network developers and suppliers; and intense competition. In particular, as noted in this news release, the Special Committee and its advisors, together with the Company and its external auditors, continue to do the work necessary to complete the restatement of RIM’s previously filed financial statements and to file its interim financial statements for the second and third quarters of fiscal 2007, and statements in this news release regarding the anticipated financial impact of the restatement on GAAP and adjusted operating results for fiscal 2007, including the fourth quarter, could be subject to change as such work continues. Certain of 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 (copies of which filings may be obtained at www.sedar.com or www.sec.gov) and RIM’s other public filings with the Securities and Exchange Commission and Canadian securities regulators. 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.

 

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.

 


 

Research In Motion Limited

Incorporated under the Laws of Ontario

(United States dollars, in thousands except per share data)

Preliminary Consolidated Statements of Operations

 

 

 

 

 

For the three months ended

 

 

 

For the year ended

 

 

 

 

 

 

 

March 3, 2007

 

December 2, 2006

 

March 4 ,2006

 

 

 

March 3, 2007

 

March 4, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

$

930,393

 

$

835,053

 

$

561,219

 

 

 

$

3,037,103

 

$

2,065,845

 

 

 

Cost of sales

 

 

 

 

432,984

 

 

382,295

 

 

252,566

 

 

 

 

1,378,917

 

 

925,215

 

 

 

Gross margin

 

 

 

 

497,409

 

 

452,758

 

 

308,653

 

 

 

 

1,658,186

 

 

1,140,630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin %

 

 

 

 

53.5

%

 

54.2

%

 

55.0

%

 

 

 

54.6

%

 

55.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 

 

66,994

 

 

60,833

 

 

43,851

 

 

 

 

234,967

 

 

157,629

 

 

 

Selling, marketing and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administration

 

 

 

 

166,769

 

 

145,903

 

 

92,321

 

 

 

 

535,787

 

 

311,420

 

 

 

Amortization

 

 

 

 

22,021

 

 

20,334

 

 

15,322

 

 

 

 

76,879

 

 

49,951

 

 

 

NTP Litigation

 

 

 

 

 

 

 

 

162,500

 

 

 

 

 

 

201,791

 

 

 

 

 

 

 

 

255,784

 

 

227,070

 

 

313,994

 

 

 

 

847,633

 

 

720,791

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

 

 

241,625

 

 

225,688

 

 

(5,341

)

 

 

 

810,553

 

 

419,839

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income

 

 

 

 

14,794

 

 

12,666

 

 

19,219

 

 

 

 

52,117

 

 

66,218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

 

 

256,419

 

 

238,354

 

 

13,878

 

 

 

 

862,670

 

 

486,057

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for (recovery of) income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

33,409

 

 

50,775

 

 

(70,725

)

 

 

 

126,179

 

 

14,515

 

 

 

Deferred

 

 

 

 

35,082

 

 

11,562

 

 

66,249

 

 

 

 

101,996

 

 

89,464

 

 

 

 

 

 

 

 

68,491

 

 

62,337

 

 

(4,476

)

 

 

 

228,175

 

 

103,979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

$

187,928

 

$

176,017

 

$

18,354

 

 

 

$

634,495

 

$

382,078

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

$

1.01

 

$

0.95

 

$

0.10

 

 

 

$

3.42

 

$

2.02

 

 

 

Diluted

 

 

 

$

0.99

 

$

0.93

 

$

0.10

 

 

 

$

3.33

 

$

1.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding (000’s)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

185,741

 

 

184,321

 

 

185,558

 

 

 

 

185,353

 

 

188,914

 

 

 

Diluted

 

 

 

 

190,253

 

 

189,821

 

 

191,509

 

 

 

 

190,603

 

 

194,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total common shares outstanding (000’s)

 

 

 

 

185,871

 

 

185,601

 

 

186,002

 

 

 

 

185,871

 

 

186,002

 

 

 

 


 

Research In Motion Limited

Incorporated under the Laws of Ontario

(United States dollars, in thousands)

 

Preliminary Consolidated Balance Sheets

 

As at

 

March 3, 2007

 

March 4, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

677,144

 

$

459,540

 

Short-term investments

 

 

310,082

 

 

175,553

 

Trade receivables

 

 

572,637

 

 

315,278

 

Other receivables

 

 

40,174

 

 

31,861

 

Inventory

 

 

255,907

 

 

134,523

 

Other current assets

 

 

41,697

 

 

45,453

 

Deferred income tax asset

 

 

21,624

 

 

94,789

 

 

 

 

1,919,265

 

 

1,256,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

425,652

 

 

614,309

 

Capital assets

 

 

487,579

 

 

326,313

 

Intangible assets

 

 

138,182

 

 

85,929

 

Goodwill

 

 

109,932

 

 

29,026

 

Deferred income tax asset

 

 

8,339

 

 

 

 

 

$

3,088,949

 

$

2,312,574

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

Accounts payable

 

$

130,270

 

$

94,954

 

Accrued liabilities

 

 

280,438

 

 

145,330

 

Income taxes payable

 

 

102,446

 

 

17,584

 

Deferred revenue

 

 

28,447

 

 

20,968

 

Current portion of long-term debt

 

 

271

 

 

262

 

 

 

 

541,872

 

 

279,098

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

6,342

 

 

6,851

 

Deferred income tax liability

 

 

52,532

 

 

27,858

 

 

 

 

600,746

 

 

313,807

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

2,488,203

 

 

1,998,767

 

 

 

$

3,088,949

 

$

2,312,574

 

 


 

Research In Motion Limited

Incorporated under the Laws of Ontario

(United States dollars, in thousands)

 

Preliminary Consolidated Statements of Cash Flows

 

 

 

For the three
months ended
March 3, 2007

 

For the year ended
March 3, 2007

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net income

 

$

187,928

 

$

634,495

 

 

 

 

 

 

 

 

 

Items not requiring an outlay of cash:

 

 

 

 

 

 

 

Amortization

 

 

34,314

 

 

126,355

 

Deferred income taxes

 

 

36,276

 

 

105,801

 

Share-based payment

 

 

4,900

 

 

17,491

 

Other

 

 

(343

)

 

(315

)

Net changes in working capital items

 

 

(88,706

)

 

(142,158

)

Net cash provided by operating activities

 

 

174,369

 

 

741,669

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

Issuance of share capital

 

 

5,113

 

 

44,534

 

Common shares repurchased pursuant to Common Share

 

 

 

 

 

 

 

Repurchase Program

 

 

 

 

(203,933

)

Repayment of long-term debt

 

 

(66

)

 

(262

)

Net cash provided by (used in) financing activities

 

 

5,047

 

 

(159,661

)

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

Acquisition of investments

 

 

(55,513

)

 

(100,080

)

Proceeds on sale or maturity of investments

 

 

20,418

 

 

86,583

 

Acquisition of capital assets

 

 

(77,198

)

 

(254,041

)

Acquisition of intangible assets

 

 

(10,891

)

 

(60,303

)

Business acquisition

 

 

(160

)

 

(116,190

)

Acquisition of short-term investments

 

 

(99,641

)

 

(163,147

)

Proceeds on sale or maturity of short-term investments

 

 

107,723

 

 

242,601

 

Net cash used in investing activities

 

 

(115,262

)

 

(364,577

)

Effect of foreign exchange gain on cash and cash equivalents

 

 

173

 

 

173

 

Net increase in cash and cash equivalents for the period

 

 

64,327

 

 

217,604

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

 

612,817

 

 

459,540

 

Cash and cash equivalents, end of period

 

$

677,144

 

$

677,144

 

 

 

As at

 

 

March 3, 2007

 

 

December 2, 2006

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

677,144

 

$

612,817

Short-term investments

 

 

310,082

 

 

280,635

Investments

 

 

425,652

 

 

426,595

 

 

$

1,412,878

 

$

1,320,047

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

RESEARCH IN MOTION LIMITED

 

(Registrant)

 

Date:

 

 

April 13, 2007

 

 

 

By:

 

/S/ BRIAN BIDULKA

 

Name:  Brian Bidulka

Title:    Chief Accounting Officer