RIM 3rd Quarter 2006 Results

[dellite]

RIM said that new product launches helped fill its sails as the company reported robust revenue and earnings in its fiscal third quarter, despite an ongoing, internal review of its stock option grants that may lead to extensive restatements of past earnings.

About 75 percent of RIM’s revenue comes from the sale of its handsets and about 17 percent derives from its services, according to the company. (Five percent derives from software and 3 percent is attributed to “other” sources.)

Among the third quarter’s highlights, according to the company: the launch of its consumer-oriented BlackBerry Pearl at T-Mobile USA and Cingular and the launch of its BlackBerry 8703e at Verizon Wireless and Sprint Nextel.

Revenue for the third quarter of fiscal 2007 was $835.1 million, up 26.8% from $658.5 million in the previous quarter and up 49% from $560.6 million in the same quarter of last year. The revenue breakdown for the quarter was approximately 75% for handhelds, 17% for service, 5% for software, and 3% for other revenue. Approximately 875,000 BlackBerry subscriber accounts were added in the quarter. At the end of the quarter, the total BlackBerry subscriber account base was approximately 7 million. Revenue and subscriber account additions will not be impacted by the restatement referenced above.

RIM’s shares dipped 3 percent the day after it reported third quarter results, possibly reflecting its projection for a range of earnings per share for the fourth quarter that largely falls below analysts’ consensus forecast.

RIM said in an update on its review of past stock option grant practices that only the second and third quarter reports made in September and last week, respectively, and for the full fiscal year 2006 would definitely not be affected by any restatements. Those restatements are expected to be made by March 3, 2007, the end of fiscal 2006, the company said.

[Barry]

RIM earned 75 percent of it revenue from BlackBerry devices, 17 percent from services, 5 percent from software, and 3 percent from other miscellaneous revenue streams.

The new BlackBerry Pearl, the first BlackBerry with a camera, memory expansion, and expanded multimedia capabilities, has proven to be boon to the company. RIM's goal with the compact smartphone - from Cingular, ROgers, and T-Mobile - was to expand the market for its products and services beyond its traditional business base to a more general consumer market.

_________________
Start Posting for Cool Prizes!