Blackberry 1998 Annual Report Download - page 5

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Maintaining market leadership
and customer growth
A significant success on the sales front in 1998 was a
$90 million contract to supply two-way pagers to
BellSouth Wireless Data over the upcoming year.
BellSouth operates wireless data service covering
93% of the US urban business population in 266
metropolitan areas. Moreover, BellSouth is aggres-
sively investing in enhanced coverage and the
promotion of its Wireless Data Network throughout
the US. The potential to increase sales through this
channel is tremendous.
Among our other successes was a $10 million
contract to supply two-way pagers to IBM for the
use of IBM’s field representatives throughout North
America. The exposure gained from supplying IBM
should substantially increase public awareness of
RIM’s products.
After working closely on design specifications with
a number of manufacturers over a period of several
months, we also signed several initial contracts for our
advanced OEM radio modems. These included a $1
million contract to supply Telxon Corporation with
OEM radio modems to be embedded in its hand-held
terminals; a $2 million contract to supply Panasonic
Corporation with OEM radio modems for integration
into its ruggedized notebook computers; and a
$3.8 million contract to supply Mobile Integrated
Technologies with OEM radio modems for vehicle-
based communications products. The latter two
contracts were finalized in early fiscal 1999.
Additionally, RIM’s radio modem was chosen for
integration into ruggedized terminals, point-of-sale
verification, telemetry, alarming, and in-vehicle
communications systems of various other manufac-
turers which are poised to launch new products over
the next year. This will create yet another source of
product sales going forward.
During the year, RIM continued to sell its Wireless
PC Card modems under its own brand name through
a network of partners who coordinate sales to large
corporate users. This product now has a sizable share
of the wireless communications peripheral market in
the US.
LETTER TO SHAREHOLDERS
3
JIM BALSILLIE
CHAIRMAN & CO-CEO
MIKE LAZARIDIS
PRESIDENT & CO-CEO