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Research฀In฀Motion฀Limited฀฀|฀฀Incorporated฀Under฀the฀Laws฀of฀Ontario฀(United฀States฀dollars,฀in฀thousands฀except฀per฀share฀data฀or฀as฀otherwise฀indicated)
For฀the฀years฀ended฀March฀1,฀2003,฀March฀2,฀2002฀and฀February฀28,฀2001
The฀following฀discussion฀and฀analysis฀should฀be฀read฀together฀with฀our฀audited฀annual฀consolidated฀
nancial฀statements฀and฀the฀accompanying฀notes.฀
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”.฀
Management’s฀Discussion฀and฀Analysis฀of฀Financial฀Condition฀and฀Results฀of฀Operations฀has฀been฀prepared฀with฀
reference฀to฀the฀Company’s฀Consolidated฀Financial฀Statements฀and฀Notes฀which฀have฀been฀prepared฀in฀
accordance฀with฀Canadian฀generally฀accepted฀accounting฀principles฀(“GAAP”).฀All฀nancial฀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”฀or฀“the฀Company”)฀is฀a฀leading฀designer,฀manufacturer฀and฀marketer฀
of฀innovative฀wide-area฀wireless฀solutions฀for฀the฀worldwide฀mobile฀communications฀market.฀Through฀
the฀development฀of฀integrated฀hardware,฀software฀and฀services฀that฀support฀multiple฀wireless฀network฀
standards,฀RIM฀provides฀platforms฀and฀solutions฀for฀seamless฀access฀to฀time-sensitive฀information฀
including฀email,฀phone,฀SMS฀messaging,฀Internet฀and฀intranet-based฀corporate฀data฀applications.฀
RIM฀also฀licenses฀its฀technology฀to฀industry฀leading฀handset฀and฀software฀vendors฀to฀enable฀these฀
companies฀to฀offer฀wireless฀data฀services฀using฀the฀BlackBerry฀Enterprise฀Server.฀There฀are฀in฀excess฀
of฀10,000฀companies฀around฀the฀world฀with฀BlackBerry฀Enterprise฀Server฀software฀installed.฀RIM฀
technology฀also฀enables฀a฀broad฀array฀of฀third฀party฀developers฀and฀manufacturers฀to฀enhance฀their฀
products฀and฀services฀with฀wireless฀connectivity.฀RIM฀derives฀its฀revenues฀from฀the฀BlackBerry฀wireless฀
platform,฀the฀RIM฀Wireless฀Handheld฀product฀line,฀software฀development฀tools,฀radio-modems฀and฀
software/hardware฀licensing฀agreements.
Summary฀Results฀of฀Operations฀
฀ ฀ ฀ ฀ ฀ ฀Fiscal฀2003฀ ฀Fiscal฀2002฀ ฀ Change฀
Revenue฀ ฀ ฀ ฀ $฀306,732฀ $฀ 294,053฀ ฀$฀ 12,679฀
Cost฀of฀sales฀ ฀ ฀ 166,615฀ ฀ 195,493฀ ฀ (28,878)
Gross฀margin฀ ฀ 140,117฀ ฀ 98,560฀ ฀ 41,557
Gross฀margin฀฀ ฀ 45.7%฀ ฀ 33.5%฀ ฀ 12.2%
Expenses฀ ฀ ฀ ฀ ฀ ฀
Research฀and฀development฀–฀net฀฀ ฀ 55,916฀ ฀ 37,446฀ ฀ 18,470
Selling,฀marketing฀and฀administration฀฀ ฀ 117,984฀ ฀ 102,359฀ ฀ 15,625
Amortization฀ ฀ 30,445฀ ฀ 17,485฀ ฀ 12,960
Restructuring฀charges฀฀ ฀ 6,550฀ ฀ –฀ ฀ 6,550
Litigation฀฀ ฀ 58,210฀ ฀ –฀ ฀ 58,210
฀ ฀ ฀ ฀ 269,105฀ ฀ 157,290฀ ฀ 111,815
Loss฀from฀operations฀ ฀ ฀(128,988)฀ ฀ (58,730)฀ ฀ (70,258)
Investment฀income฀ ฀ ฀ 11,430฀ ฀ 25,738฀ ฀ (14,308)
Loss฀before฀write-down฀of฀investments฀and฀income฀taxes฀ ฀ (117,558)฀ ฀ (32,992)฀ ฀ (84,566)
Write-down฀of฀investments฀฀ ฀ –฀ ฀ 5,350฀ ฀ (5,350)
Loss฀before฀income฀taxes฀ ฀ (117,558)฀ ฀ (38,342)฀ ฀ (79,216)
Provision฀for฀(recovery฀of)฀income฀tax฀ ฀ 31,106฀ ฀ (9,863)฀ ฀ (40,969)
Net฀loss฀ ฀ $฀(148,664)฀ $฀ (28,479)฀ $฀ (120,185)
Loss฀per฀share฀-฀basic฀and฀diluted฀ $฀ (1.91)฀ $฀ (0.36)฀ $฀ (1.55)
Critical฀Accounting฀Policies฀and฀Estimates฀
General฀
The฀preparation฀of฀these฀consolidated฀nancial฀statements฀requires฀management฀to฀make฀estimates฀
and฀assumptions฀that฀affect฀the฀reported฀amounts฀of฀assets,฀liabilities,฀revenues฀and฀expenses฀and฀the฀
disclosure฀of฀contingent฀assets฀and฀liabilities.฀For฀example,฀management฀makes฀signicant฀estimates฀in฀
Management’s฀
Discussion฀and฀Analysis฀of฀
Financial฀Condition฀
and฀Results฀of฀Operations
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