Blackberry 2000 Annual Report Download - page 17

Amortization
Amortization expense increased to $4.7 million for
the year ended February 29, 2000 from $2.8 million
in the prior year. Amortization expense was 6% of
revenue in both years. Acquisitions of capital assets
totalling $31.1 million were made in the year ended
February 29, 2000 compared to acquisitions of $8.9
million for the 1999 fiscal year. Significant additions for
fiscal 2000 included land and office buildings, production
equipment and tooling, research and development
computers and equipment and computer infrastructure
for the BlackBerry solution.
Investment Income
Investment income increased to $6.0 million in the year
ended February 29, 2000 from $3.8 million in the prior
year. The increase reflects the Company’s higher average
cash, cash equivalents and marketable security balances
during the year and an increase in investment yields during
the latter part of the year.
Income Taxes
An increase in the effective income tax rate to 35% for
the year ended February 29, 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.
Net Income
Net income was $10.5 million, or 12% of revenue for
fiscal 2000 compared to $6.4 million, or 14% of revenue
for fiscal 1999. The decrease as a percentage of revenue
was primarily due to strategic expenditures for sales and
marketing initiatives and expansion of the Company’s
support of the distribution channels for the RIM Wireless
Handheld product line and BlackBerry.
Liquidity and Capital Resources
Cash used for operating activities was $15.7 million for
the year ended February 29, 2000 compared to cash
inflows of $1.3 million in the prior year. Significant
increases in accounts receivable and inventory during the
2000 fiscal year, as a result of increased sales volumes,
accounted for the increased use of cash.
Cash, cash equivalents and marketable securities were
$218.2 million at February 29, 2000 compared to $66.6
million at February 28, 1999. The significant increase
was primarily due to the proceeds of an offering of 5.6
million common shares for net proceeds of $163.2 million
completed in the third quarter of fiscal 2000. Cash, cash
equivalents and marketable securities accounted for 65%
of total assets at February 29, 2000 compared to 57% in
the prior year.
15
Revenue by
Product
Fiscal 2000
Selling, Marketing
and Administration
($ millions)
Gross Research
and Development
($ millions)
Revenue by
Product
Fiscal 1999
0
3
6
9
12
$15
1996 $1.2 1997 1998 1999 2000
$1.9
$2.7
$6.5
$13.9
0
3
6
9
12
$15
1996 $1.7 1997 1998 1999 2000
$3.0
$4.4
$7.9
$12.2
Research In Motion Limited ■Incorporated Under the Laws of Ontario
■ RIM Wireless Handhelds
■ BlackBerry
■ OEM & Other
■ RIM Wireless Handhelds
■ OEM & Other