Blackberry 2000 Annual Report Download

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2000
Annual Report
RESEARCH IN MOTION

Table of contents

  • Page 1
    Annual Report RESEARC H IN M OTION 2000

  • Page 2
    ...based in Waterloo, Ontario, RIM is listed on the Nasdaq Stock Market (NASDAQ: RIMM) and the Toronto Stock Exchange (TSE: RIM). Investors may contact investor_relations@ rim.net. Web sites: www.rim.net and www.blackberry.net. Research In Motion, RIM, the RIM logo, the RIM Wireless Handheld family of...

  • Page 3
    ... 14% 16% 39% 17% 14% Balance Sheet Data Total Assets Shareholders' Equity $ $ 337,227 311,391 $ $ 117,898 107,505 * In fiscal 2000, as a result of RIM's increased economic activity in the U.S., the U.S. dollar was adopted as the reporting currency of the Company. All balances for periods up to and...

  • Page 4
    ... partners; and strengthened our human resources in all areas. As well, RIM 's financial performance for the year was dramatic, with significant sales and earnings growth. Letter to Employee Growth by Department Fiscal 1998 - 2000 600 500 400 300 200 100 0 1998 1999 2000 â- Research & Development...

  • Page 5
    ... technology personnel, we opened a new office in Kanata, O ntario in fiscal 2000, which focuses on the development of next generation radio technologies. We also received another government funded research and development contract from Technology Partnerships Canada. During the past year, we almost...

  • Page 6
    ... Rogers™ AT& T ® Wireless, as well as radio modem sales. Given that BlackBerry Exchange Edition is a service business, front-line sales must be supported by a customer service team. This group focuses on client, developer and inside sales support, as well as billing and information systems. RIM...

  • Page 7
    ... applications such as mobile commerce, which are expected to drive demand for wireless technology beyond the pure email market. M ajor progress was made in the areas of new product and technology development; manufacturing capability; human resources; customer support; and management information...

  • Page 8
    ...company with proven technologies and a history of developing breakthrough wireless data solutions. At the core of RIM 's products is leading-edge radio technology. This technology has been incorporated into all of our products including award-winning RIM Wireless Handhelds and industry-leading radio...

  • Page 9
    ... desktop software, nationwide airtime and a choice of easy-to-use RIM Wireless H andhelds. With BlackBerry, customers can send and receive email; maintain access to their organizer; and use optional web services to easily access information such as news, weather, stock and travel updates. BlackBerry...

  • Page 10
    ...in fiscal 2001. Earthlink, the second-largest ISP in the world, is currently test marketing BlackBerry Internet Edition with a pilot program involving a select group of customers. Partner Sun Microsystems, Inc. RIM to enable wireless handhelds with Sun's Java Technology. December 7, 1999 BellSouth...

  • Page 11
    ..., 2000 Motient and RIM announce a distribution agreement for the BlackBerry wireless email solution. April 24, 2000 • O ther solutions include financial applications such as stock trading and charting provided by w-Trade™ Technologies, Aether and O utercurve Finance™, to dispatching services...

  • Page 12
    ... a broad range of products that require wireless connectivity. Some industries that benefit from wireless connectivity applications are financial, field service and transportation. Financial RIM radio modems can be integrated into Automated Teller M achines (ATM ), Point of Sale (PO S) terminals and...

  • Page 13
    ...a central location. Using M obileM AX2 and a data-entry device, drivers can verify pick-up and delivery data as well as provide status updates and reports. Going Forward Thanks to the overwhelming success of BlackBerry, RIM Wireless H andhelds and RIM radio modems throughout fiscal 2000, RIM is now...

  • Page 14
    ...category from PC Computing for its wireless messaging functionality and ease of use. The Annual MVP Awards are awarded to the most valuable products, services and people of the year. Advertising In April 2000, RIM launched its first national advertising and branding campaign for BlackBerry. Ads are...

  • Page 15
    ... were sales of radio modems to O EM manufactures, software licences and non-recurring engineering development services and sales of wireless PC cards. Sales and marketing channels include direct sales to corporate customers, distribution by computer manufacturers and Internet service providers...

  • Page 16
    ...EM radio modems and wireless PC cards accounting for the balance. Research and Development Research and development expenditures were composed of salaries for technical personnel, the costs of related engineering materials, software tools and support and subcontracted research and development costs...

  • Page 17
    ...2000 compared to 26% in the prior year reflects RIM 's continued profitability, as the Company has used tax loss carry-forwards from prior years and has incurred additional minimum taxes on the Company's asset base. $1.7 â- BlackBerry â- OEM & Other 3 $3.0 â- RIM Wireless Handhelds â- RIM...

  • Page 18
    ..., Internet service providers and value-added resellers to expand BlackBerry distribution and sales channels in N orth America and internationally. Third-party applications continue to drive demand and expand functionality for RIM 's products and services. RIM expects to enhance software development...

  • Page 19
    ... and other related matters. Waterloo, Ontario Mike Lazaridis President & Co-CEO Dennis Kavelman Chief Financial Officer Auditors' Report To the Shareholders of Research In Motion Limited We have audited the consolidated balance sheets of Research In M otion Limited as at February 29, 2000 and...

  • Page 20
    ...Accounts payable and accrued liabilities Taxes payable Deferred revenue Current portion of long-term debt (note 7) Long-term debt (note 7) Total liabilities $ 11,033 1,815 6,277 185 19,310 6,526 25,836 $ 7,764 844 1,785 - 10,393 - 10,393 Shareholders' Equity Capital stock (note 8) Retained earnings...

  • Page 21
    Research In Motion Limited â- Incorporated Under the Laws of Ontario â- United States dollars, in thousands except per share data Consolidated Statements of Operations and Retained Earnings February 29, For the year ended 2000 February 28, 1999 February 28, 1998 (restated in U.S. dollars - ...

  • Page 22
    Research In Motion Limited â- Incorporated Under the Laws of Ontario â- United States dollars, in thousands except per share data Consolidated Statements of Cash Flows February 29, For the year ended 2000 February 28, 1999 February 28, 1998 (restated in U.S. dollars - see note 1(c)) Cash ...

  • Page 23
    ...the years ended February 29, 2000, February 28, 1999 and February 28, 1998 Notes to the Consolidated Financial Statements Nature of Business Research In M otion Limited (the " Company" ) is in the business of designing, manufacturing and marketing wireless Internet appliances and services and radio...

  • Page 24
    ... of capital assets used for research and development is credited against the related capital assets and all other assistance is credited against related expenses, as incurred. earnings per share is calculated based on the weighted average number of shares outstanding during the year. Fully...

  • Page 25
    Research In Motion Limited â- Incorporated Under the Laws of Ontario â- United States dollars, in thousands except per share data 2. Marketable Securities M arketable securities are comprised as follows: February 29, 2000 February 28, 1999 Preferred shares Bonds and debentures Discount notes...

  • Page 26
    ... of financing costs will be credited directly to share capital when utilized. Any benefits related to investment tax credits claimed for capital asset acquisitions will be credited to capital assets. Any other benefits of these carry-forwards will be credited to income in the year of recognition...

  • Page 27
    ...The long-term debt principal payments for the years 2001 through 2004 are as follows: For the year ending the last day of February, 2001 2002 2003 2004 $ $ 185 197 211 6,118 6,711 At February 29, 2000 and February 28, 1999, the Company had not drawn on its authorized operating line of credit of...

  • Page 28
    ... to the Consolidated Financial Statements continued â- For the years ended February 29, 2000, February 28, 1999 and February 28, 1998 8. Capital Stock (a) Share capital - The Company has authorized an unlimited number of non-voting, redeemable, retractable Class A common shares, an unlimited...

  • Page 29
    ... holder to acquire 75,000 common shares for $20.83 each from August 17, 2000 to August 17, 2004. This transaction was a non-cash transaction. The Company has determined that the fair value of the warrant is $370 using the Black-Scholes option pricing model which assumes an expected life of one year...

  • Page 30
    ... have not yet been met. Government assistance, together with investment tax credits, has been applied to reduce research and development expense as follows: February 29, For the year ended 2000 February 28, 1999 February 28, 1998 Research and development Government funding $ $ 12,234 4,496 7,738...

  • Page 31
    ... of Ontario â- United States dollars, in thousands except per share data 12. Segment Disclosures The Company, after reviewing its reporting systems, has determined that it has one reportable segment. The Company's operations are substantially all related to the research, design, manufacture and...

  • Page 32
    ..., the financial statements for the periods prior to the change in reporting currency must be translated to U.S. dollars using the current rate method, which uses specific year end and specific annual average exchange rates as appropriate. The significant differences arising from the application of...

  • Page 33
    Research In Motion Limited â- Incorporated Under the Laws of Ontario â- United States dollars, in thousands except per share data The tax effects of significant temporary differences under U.S. GAAP are as follows: February 29, 2000 February 28, 1999 Assets Income tax losses available for ...

  • Page 34
    ... accounting for employee stock options had been applied. The disclosures in the following table show the company's net income and earnings per share on a proforma basis using the fair value method as determined by using the Black-Scholes option pricing model include: February 29, For the year ended...

  • Page 35
    ... by Fundamental Communications Inc. • Designed by Compendium Design International Inc., Toronto, Ontario www.compendiumdesign.com • Printed in Canada Information Officers Mike Lazaridis President and Co-Chief Executive Officer Corporate Board of Directors Donald McMurtry Vice President, Sales...

  • Page 36
    Research In Motion Limited 295 Phillip Street Waterloo, Ontario Canada N2L 3W8 Tel: (519) 888-7465 Fax: (519) 888-6906 Website: www.rim.net Email: [email protected]