FORM 6-K
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Report of
Foreign Private Issuer
Pursuant
to Rule 13a-16 or 15d-16 under
the
Securities Exchange Act of 1934
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For
the month of
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June
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2009
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Research
In Motion Limited
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(Translation
of registrant’s name into English)
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295
Phillip Street,
Waterloo,
Ontario, Canada
N2L
3W8
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(Address
of principal executive offices)
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Indicate
by check mark whether the registrant files or will file annual reports under
cover Form 20-F or Form 40F.
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Form
20-F
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Form
40-F
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X
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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):
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):
Rule 101(b)(7):
Indicate
by check mark whether the registrant by furnishing the information contained in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
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Yes
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No
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X
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If “Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b) : 82-_______________
DOCUMENT
INDEX
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Document
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| 1. |
Research
In Motion Reports First Quarter
Results
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June
18, 2009
FOR
IMMEDIATE RELEASE
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 30, 2009 (all figures in U.S. dollars and U.S. GAAP, except where
indicated).
Revenue
for the first quarter of fiscal 2010 was $3.42 billion, comparable with $3.46
billion in the previous quarter and up 53% from $2.24 billion in the same
quarter of last year. The revenue breakdown for the quarter was approximately
81% for devices, 13% for service, 2% for software and 4% for other
revenue. During the quarter, RIM shipped approximately 7.8
million devices.
Approximately
3.8 million net new BlackBerry® subscriber accounts were added in the
quarter. At the end of the quarter, the total BlackBerry subscriber
account base was approximately 28.5 million.
“We are
starting fiscal 2010 with strong financial performance and impressive market
share gains, including a 55% share of the U.S. smartphone market according to
IDC’s latest estimate,” said Jim Balsillie, Co-CEO at RIM. “The industry leading
BlackBerry product portfolio is driving strong customer demand around the world
and our penetration of new market segments continues to expand. We are
particularly excited about the strength of our product portfolio for fiscal 2010
and we are looking forward to driving continued growth and profitability in our
business throughout the remainder of the year.”
GAAP net
income for the quarter was $643.0 million, or $1.12 per share diluted, compared
with net income of $518.3 million, or $0.90 per share diluted, in the prior
quarter and net income of $482.5 million, or $0.84 per share diluted, in the
same quarter last year. Adjusted net income for the first quarter was
$564.4 million, or $0.98 per share diluted. Adjusted net income
excludes the impact of certain unusual items that were recognized in the
quarter, including a charge to selling, marketing and administration expense of
$96.4 million relating to the payment of certain employee tax liabilities
relating to certain exercised stock options and the foreign exchange impact
relating to the previously disclosed enactment of the functional currency tax
rules in Canada that became effective in the first quarter of fiscal
2010. In addition, there was a benefit to RIM’s income tax provision
of $175.1 million primarily as a result of the enactment of the functional
currency tax rules. These unusual items and their related impacts on
net income, EPS and selling, marketing and administration expense are summarized
in the table below:
Reconciliation
of GAAP Net income to adjusted net income
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For
the quarter ended May 30, 2009
(in
thousands, except per share amounts)
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|||||||
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|||||||
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Selling,
marketing and administration
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Income
before
income
taxes
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Provision
for
income
taxes
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Net
income
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Diluted
EPS
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As
reported
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$ 514,291
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$ 699,197
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$ 56,167
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$
643,030
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$ 1.12
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Foreign
exchange impact of enactment of functional currency tax
rules
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(54,300)
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54,300
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16,904
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37,396
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0.06
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Provision
for employee tax obligations for stock options
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(42,132)
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42,132
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13,180
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28,952
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0.05
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Tax
benefit recorded on enactment of functional currency tax
rules
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-
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-
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145,000
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(145,000)
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(0.25)
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Sub-total
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(96,432)
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96,432
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175,084
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(78,652)
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(0.14)
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Adjusted
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$ 417,859
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$ 795,629
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$ 231,251
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$
564,378
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$ 0.98
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Note: Adjusted
selling, marketing and administration expense, adjusted income before taxes,
adjusted provision for income taxes, adjusted net income and adjusted diluted
EPS do not have any standardized meanings prescribed by GAAP and thus are not
comparable to similarly titled measures reported by other
issuers. The Company believes that the presentation of adjusted net
income and adjusted diluted EPS enables the Company and its shareholders to
better assess RIM’s operating results relative to its operating results in prior
periods and improves the comparability of the information
presented. Investors should consider these non-GAAP financial
measures in the context of RIM’s GAAP results.
Revenue
for the second quarter of fiscal 2010 ending August 29, 2009 is expected to be
in the range of $3.45-$3.70 billion. Gross margin for Q2 is expected
to be approximately 43-44%. Net subscriber account additions in the
second quarter are expected to be in the range of 3.8-4.1
million. Earnings per share for the second quarter are expected to be
in the range of $0.94-$1.03 per share diluted.
The total
of cash, cash equivalents, short-term and long-term investments was $2.42
billion as at May 30, 2009, compared to $2.24 billion at the end of the previous
quarter, an increase of $180 million over the prior quarter. Cash flow from
operations in Q1 was approximately $615 million which was offset primarily by
capital asset and intangible asset acquisitions of approximately $310 million
and business acquisitions of approximately $124 million.
A
conference call and live webcast will be held beginning at 5 pm ET, June 18,
2009, which can be accessed by dialing 800-733-7571 (North America),
416-644-3415 (outside North America). The replay of the company’s Q1 conference
call can be accessed after 7 pm ET, June 18, 2009 until midnight ET, July 2,
2009. It can be accessed by dialing 416-640-1917 and entering passcode
21289979#. 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 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.
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Media
Contact:
Marisa
Conway
Brodeur
(PR Agency for RIM)
(212)
336-7509
mconway@brodeur.com
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Investor
Contact:
RIM
Investor Relations
(519)
888-7465
investor_relations@rim.com
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###
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, earnings and net
subscriber account additions expectations for the first quarter of fiscal 2010,
customer demand, penetration of new markets, product initiatives and anticipated
growth. The terms and phrases “continue”, “expected”, “driving strong
customer demand”, “looking forward" 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: reduced spending by
customers and other risks relating to the uncertainty of economic and
geopolitical conditions; risks relating to RIM's intellectual property rights;
RIM's ability to enhance current products and develop new products and services;
RIM's reliance on carrier partners, third-party manufacturers, third-party
network developers and suppliers; risks relating to the efficient and
uninterrupted operation of RIM’s network operations center; risks related to
RIM’s international operations; and intense competition. 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.
Research
In Motion Limited
Incorporated
under the Laws of Ontario
(United
States dollars, in thousands except per share data)(unaudited)
Consolidated
Statements of Operations
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For
the three months ended
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May
30,
2009
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February
28,
2009
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May
31,
2008
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Revenue
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$ | 3,423,510 | $ | 3,463,193 | $ | 2,242,565 | ||||||
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Cost
of sales
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1,931,985 | 2,079,615 | 1,105,208 | |||||||||
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Gross
margin
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1,491,525 | 1,383,578 | 1,137,357 | |||||||||
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Gross
margin %
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43.6 | % | 40.0 | % | 50.7 | % | ||||||
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Expenses
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||||||||||||
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Research
and development
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219,777 | 182,535 | 127,776 | |||||||||
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Selling,
marketing and
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administration
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514,291 | 406,493 | 326,592 | |||||||||
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Amortization
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67,396 | 61,595 | 36,552 | |||||||||
| 801,464 | 650,623 | 490,920 | ||||||||||
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Income
from operations
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690,061 | 732,955 | 646,437 | |||||||||
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Investment
income
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9,136 | 10,568 | 18,977 | |||||||||
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Income
before income taxes
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699,197 | 743,523 | 665,414 | |||||||||
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Provision
for income taxes
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Current
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113,996 | 223,314 | 225,658 | |||||||||
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Deferred
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(57,829 | ) | 1,950 | (42,759 | ) | |||||||
| 56,167 | 225,264 | 182,899 | ||||||||||
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Net
income
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$ | 643,030 | $ | 518,259 | $ | 482,515 | ||||||
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Earnings
per share
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Basic
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$ | 1.13 | $ | 0.92 | $ | 0.86 | ||||||
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Diluted
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$ | 1.12 | $ | 0.90 | $ | 0.84 | ||||||
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Weighted
average number of common shares outstanding (000’s)
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||||||||||||
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Basic
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566,787 | 566,105 | 563,564 | |||||||||
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Diluted
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573,259 | 572,753 | 574,650 | |||||||||
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Total
common shares outstanding (000's)
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567,368 | 566,219 | 564,418 | |||||||||
Research
In Motion Limited
Incorporated
under the Laws of Ontario
(United
States dollars, in thousands except per share data)(unaudited)
Consolidated Balance
Sheets
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As
at
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May
30, 2009
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February
28, 2009
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Assets
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Current
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||||||||
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Cash
and cash equivalents
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$ | 1,135,325 | $ | 835,546 | ||||
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Short-term
investments
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619,914 | 682,666 | ||||||
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Trade
receivables
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2,337,983 | 2,112,117 | ||||||
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Other
receivables
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216,963 | 157,728 | ||||||
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Inventory
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634,057 | 682,400 | ||||||
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Other
current assets
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178,964 | 187,257 | ||||||
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Deferred
income tax asset
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226,247 | 183,872 | ||||||
| 5,349,453 | 4,841,586 | |||||||
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Long-term
investments
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663,990 | 720,635 | ||||||
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Capital
assets
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1,509,405 | 1,334,648 | ||||||
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Intangible
assets
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1,171,551 | 1,066,527 | ||||||
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Goodwill
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141,067 | 137,572 | ||||||
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Deferred
income tax asset
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- | 404 | ||||||
| $ | 8,835,466 | $ | 8,101,372 | |||||
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Liabilities
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||||||||
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Current
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||||||||
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Accounts
payable
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$ | 612,784 | $ | 448,339 | ||||
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Accrued
liabilities
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1,496,676 | 1,238,602 | ||||||
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Income
taxes payable
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92,323 | 361,460 | ||||||
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Deferred
revenue
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63,916 | 53,834 | ||||||
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Deferred
income tax liability
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- | 13,116 | ||||||
| 2,265,699 | 2,115,351 | |||||||
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Deferred
income tax liability
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53,965 | 87,917 | ||||||
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Income
taxes payable
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27,470 | 23,976 | ||||||
| 2,347,134 | 2,227,244 | |||||||
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Shareholders’
Equity
|
||||||||
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Capital
stock
|
2,225,158 | 2,208,235 | ||||||
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Treasury
Shares
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(39,666 | ) | - | |||||
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Retained
earnings
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4,188,740 | 3,545,710 | ||||||
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Additional
paid-in capital
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127,593 | 119,726 | ||||||
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Accumulated
other comprehensive income (loss)
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(13,493 | ) | 457 | |||||
| 6,488,332 | 5,874,128 | |||||||
| $ | 8,835,466 | $ | 8,101,372 | |||||
Research
In Motion Limited
Incorporated
under the Laws of Ontario
(United
States dollars, in thousands except per share data)(unaudited)
Consolidated
Statements of Cash Flows
|
For
the three
months
ended
May
30, 2009
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For
the three
months
ended
May
31, 2008
|
|||||||
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Cash
flows from operating activities
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||||||||
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Net
income
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$ | 643,030 | $ | 482,515 | ||||
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Items
not requiring an outlay of cash:
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||||||||
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Amortization
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128,541 | 56,679 | ||||||
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Deferred
income taxes
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(57,516 | ) | (42,751 | ) | ||||
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Income
taxes payable
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3,494 | (425 | ) | |||||
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Stock-based
compensation
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12,701 | 9,900 | ||||||
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Other
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(25,589 | ) | (1,869 | ) | ||||
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Net
changes in working capital items
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(90,038 | ) | (498,533 | ) | ||||
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Net
cash provided by operating activities
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614,623 | 5,516 | ||||||
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Cash
flows from financing activities
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||||||||
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Issuance
of common shares
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11,542 | 15,044 | ||||||
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Excess
tax benefits from stock-based compensation
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547 | 10,693 | ||||||
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Purchase
of treasury shares
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(39,666 | ) | - | |||||
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Repayment
of debt
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(6,099 | ) | (83 | ) | ||||
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Net
cash (used in) provided by financing activities
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(33,676 | ) | 25,654 | |||||
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Cash
flows from investing activities
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||||||||
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Acquisition
of long-term investments
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(110,112 | ) | (113,696 | ) | ||||
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Proceeds
on sale or maturity of long-term investments
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121,076 | 95,083 | ||||||
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Acquisition
of capital assets
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(247,240 | ) | (195,650 | ) | ||||
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Acquisition
of intangible assets
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(63,103 | ) | (96,892 | ) | ||||
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Business
acquisitions
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(124,414 | ) | - | |||||
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Acquisition
of short-term investments
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(156,027 | ) | (173,905 | ) | ||||
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Proceeds
on sale or maturity of short-term investments
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281,430 | 251,849 | ||||||
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Net
cash used in investing activities
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(298,390 | ) | (233,211 | ) | ||||
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Effect
of foreign exchange gain on cash and cash equivalents
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17,222 | 1,860 | ||||||
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Net
increase (decrease) in cash and cash equivalents for the
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||||||||
|
period
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299,779 | (200,181 | ) | |||||
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Cash
and cash equivalents, beginning of period
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835,546 | 1,184,398 | ||||||
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Cash
and cash equivalents, end of period
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$ | 1,135,325 | $ | 984,217 | ||||
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As
at
|
May
30, 2009
|
February
28, 2009
|
||||||
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Cash
and cash equivalents
|
$ | 1,135,325 | $ | 835,546 | ||||
|
Short-term
investments
|
619,914 | 682,666 | ||||||
|
Long-term
investments
|
663,990 | 720,635 | ||||||
| $ | 2,419,229 | $ | 2,238,847 | |||||
SIGNATURES
Pursuant to the requirement 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
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(Registrant)
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Date:
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June
18, 2009
|
By:
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/s/
Edel Ebbs
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(Signature)
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|||||
|
Edel
Ebbs
Vice
President, Investor Relations
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