Blackberry 2002 Annual Report Download - page 10

RESEARCH IN MOTION LIMITED 2002 ANNUAL REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read together with our audited annual consolidated financial statements
and the accompanying notes in this Annual Report.
Some of the statements set forth in this section are forward-looking statements relating to the Company’s future results
of operations. Actual results may differ materially from those expressed or implied by such forward-looking statements.
Please see “Forward-Looking Statements.”
All financial information herein is presented in thousands of United States (“U.S.”) dollars, except per share data, and
except as otherwise indicated.
Overview
Research In Motion Limited (“RIM”) is a leading designer, manufacturer and marketer of innovative wireless solutions
for the mobile communications market. Through development and integration of hardware, software and services,
RIM provides solutions for seamless access to time-sensitive information and communications including email, phone,
messaging, Internet and intranet-based applications. RIM technology also enables a broad array of third-party
developers and manufacturers around the world to enhance their products and services with wireless connectivity.
Revenue for the year increased 32.9% to $294.1 million from $221.3 million in the previous year. The BlackBerry
wireless email solution again proved to be the main revenue-driver for RIM, increasing to 73.7% of revenue in fiscal
2002 from 54.4% in the previous year. We anticipate that BlackBerry will continue to drive the Company’s growth in
the future with revenue from handhelds, software, service and licensing.
Highlights subsequent to fiscal 2001 were:
•RIM was awarded a patent for the BlackBerry Single Mailbox Integration system, which is an important element
for RIM’s BlackBerry wireless email solution.
•RIM developed and launched new software for BlackBerry which allows for wireless calendar synchronization.
•RIM launched the BlackBerry 5820, the first General Packet Radio System (“GPRS”) handheld, of which the
Company made significant shipments to mm02 (formerly part of British Telecommunications). Through mm02
BlackBerry is now commercially available in the United Kingdom, the Netherlands, Germany and Ireland. Other
European customers include Telecom Italia Mobile and T-Mobile.
•RIM announced the first Java™technology-based wireless handheld, utilizing the Java 2 Micro Edition as a core
operating system. Java technology provides an industry standard programming platform that significantly eases the
development and deployment of wireless applications.
•RIM signed a multi-year agreement with Nextel Communications, Inc. to develop a BlackBerry Wireless Handheld
for Nextel’s iDEN®network.
•RIM announced a new family of OEM radio modems for GSM/GPRS wireless networks, providing RIM the opportunity
to access international markets.
•RIM developed and launched the first GSM/GPRS voice-enabled handheld in North America, the BlackBerry 5810,
and signed supply agreements with VoiceStream Wireless Corporation, AT&T Wireless and Rogers AT&T Wireless.
•RIM announced an agreement with Hutchison Telecommunications to provide BlackBerry to corporate customers
in Hong Kong, making Hutchison Telecom the first mobile operator to offer BlackBerry in Asia.
The net loss was $28.5 million in fiscal 2002 versus $6.2 million in the prior year. Net loss for the year ended March 2,
2002, before the write-down of investments of $5.4 million, was $23.1 million compared to the prior year’s net income
of $8.5 million before the write-down of investments of $14.8 million.
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