RIM First Quarter 2007 Earnings Way Up

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RIM marked a profit rising more than 70 per cent for the first quarter ending June 2 increasing almost $1.08-billion (U.S.), RIM added 1.2 million more BlackBerry subscribers.
Net income rose to $223.2-million, or $1.17 a share diluted share — up 73 per cent from the $128.8-million or 67 cents of net income that RIM brought in the year-earlier period.RIM marked a profit rising more than 70 per cent for the that revenue in its first quarter ended June 2 rose to $1.08-billion (U.S.), up 76.5 per cent from the same period of 2006, as the company added 1.2 million more BlackBerry subscribers.

Adjusted net income, excluding stock option expenses of $5.3 million, was $228.5-million, or $1.20 a share.

RIM's revenue was estimated to be $1.05-billion — although some had predicted it would bring in as much as $1.1-billion. The Street estimate for earnings a share had been $1.06, with the most optimistic estimate at $1.13, according to Thomson Financial.

Revenue for the second quarter of fiscal 2008 ending Sept. 1, is expected to be in the range of $1.3-billion to $1.365-billion. Adjusted net income, excluding stock option expenses of $5.3 million, was $228.5-million, or $1.20 a share.

Subscriber account additions in the second quarter are expected to be in the range of 1.325 million to 1.375 million. EPS for the second quarter are expected to be in the range of $1.37 to $1.49 diluted.


GAAP net income for the quarter was $223.2 million, or $1.17 per share diluted, as compared with net income of $187.4 million, or $0.98 per share diluted, in the prior quarter. Adjusted net income excluding stock option expense of $5.3 million was $228.5 million, or $1.20 per share diluted. The adjusted net income and earnings 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. These adjusted measures should be considered in the context of RIM’s GAAP results. This is the last quarter that RIM will be reporting net income and earnings per share adjusted for stock option expense.