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2002 ANNUAL REPORT RESEARCH IN MOTION LIMITED
Summary Results of Operations
OPERATING HIGHLIGHTS FISCAL 2002 FISCAL 2001
Revenue $ 294,053 $ 221,327
Gross margin $ 98,560 $ 87,475
Gross margin percentage 33.5% 39.5%
Net income (loss) before write-down of investments $ (23,129) $8,539
Write-down of investments 5,350 14,750
Net loss $ (28,479) $ (6,211)
Basic & diluted loss per share $ (0.36) $ (0.08)
Selected Quarterly Financial Data – Unaudited
2002 FISCAL YEAR FOURTH QUARTER THIRD QUARTER SECOND QUARTER FIRST QUARTER
Revenue $ 66,132 $ 70,857 $ 80,059 $ 77,005
Gross margin 27,826 26,472 14,897 29,365
Net income (loss) before write-down
of investments (8,550) (6,258) (12,169)(1) 3,848
Net income (loss) $ (8,550)(1) $ (6,258) $ (17,519)(2) $ 3,848
Earnings (loss) per share
Basic $ (0.11) $ (0.08) $ (0.22) $ 0.05
Diluted $ (0.11) $ (0.08) $ (0.22) $ 0.05
2001 FISCAL YEAR FOURTH QUARTER THIRD QUARTER SECOND QUARTER FIRST QUARTER
Revenue $ 90,079 $ 61,629 $ 42,521 $ 27,098
Gross margin 34,486 23,704 17,144 12,141
Net income (loss) before write-down
of investments 8,280 1,496 (1,625) 388
Net income (loss) $ (6,470)(2) $ 1,496 $ (1,625) $ 388
Earnings (loss) per share
Basic $ (0.08) $ 0.02 $ (0.02) $ 0.01
Diluted $ (0.08) $ 0.02 $ (0.02) $ –
Notes:
(1) During the second quarter of fiscal 2002, the Company recorded a bad debt provision of $6,900 to write down the trade receivable balance of
Motient Corporation (“Motient”) to its then estimated net realizable value. The provision was charged to selling, marketing and administration on the
Consolidated Statement of Operations and Retained Earnings in the second quarter.
During the fourth quarter of fiscal 2002, the Company collected trade receivable monies from Motient previously provided for, resulting in an income
amount of $3,950. This amount was recorded as a reduction to selling, marketing and administration expense in the fourth quarter and represented
approximately $0.03 per share after tax. This is further described later in this MD&A under Selling, Marketing and Administration Expenses.
(2) The Company recorded a write-down of its investments in the amount of $5,350 during the second quarter of 2002 and a write-down of its investments
in the amount of $14,750 in the fourth quarter of 2001.
Revenue
Revenue increased $72.7 million or 32.9% to $294.1 million for the year ended March 2, 2002 from $221.3 million
for the previous year. RIM’s revenues are generated through a number of sources. Sales of BlackBerry Wireless
Handhelds to large corporate customers, strategic partners and network operators continue to generate significant
revenue streams for the Company. Additionally, the Company earns an increasing amount of its revenues from
recurring monthly revenues for BlackBerry service. Revenues are also generated from:
• licensing of BlackBerry software
• sales of radio modems to OEM manufacturers
• non-recurring engineering development services (“NRE”)
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