Blackberry 2000 Annual Report Download - page 16

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Revenue
Revenue increased to $85.0 million from $47.3 million
for the year ended February 29, 2000, representing an
increase of 80% . This increase was primarily due to sales
of the RIM 950 Wireless Handheld and the RIM 850
Wireless Handheld to BellSouth Wireless Data and
Motient, respectively, which in combination, accounted
for approximately 56% of the Company’s revenues.
BlackBerry accounted for approximately 19% of revenues.
The remaining 25% of revenue was comprised of OEM
radio modems, software licence revenue, non-recurring
engineering charges and wireless PC cards. During the
year ended February 28, 1999, the RIM 950 Wireless
Handheld accounted for 80% of revenue, with OEM
radio modems and wireless PC cards accounting for
the balance.
Gross Margin
Gross margins increased to 43% in the fiscal year,
compared to 39% in the previous year. The increase was
primarily due to changes in the revenue mix. Fiscal 2000
included significantly more software and service revenue,
compared to the previous year, which generated higher
margins than traditional hardware revenues.
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. Gross
research and development expenditures were $12.2 million
in the year ended February 29, 2000 compared to $7.9
million in the previous year, which represents an increase
of 54% . Accounting for government funding of $4.5
million for the year ended February 29, 2000 and
$3.5 million in the previous year, net research and
development expenditures consistently represented
9% of total revenues.
Selling, Marketing and Administrative Expenses
Selling, marketing and administrative expenses were
$13.9 million for the year end February 29, 2000,
compared to $6.5 million for fiscal 1999. Sales, marketing
and administrative expenditures increased to 16% of total
revenue versus 14% in the previous year, as RIM increased
expenditures to support the BlackBerry, BellSouth Wireless
Data and Motient sales and distribution channels.
Significant expenditures consisted of increased sales and
marketing initiatives due to BlackBerry and continued
focus on joint channel marketing activities.
14
Management’s Discussion and Analysis of Financial Condition and Results of Operations continued