Blackberry 2003 Annual Report Download - page 14

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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
12
•฀ Launched฀BlackBerry฀Web฀Client฀which฀assists฀in฀RIM’s฀expansion฀of฀its฀addressable฀market฀to฀include฀
the฀professional฀consumer฀segment฀(hereinafter฀called฀“prosumer”฀market).
•฀ Launched฀the฀BlackBerry฀Connect฀licensing฀program฀
•฀ Continued฀to฀expand฀the฀geographic฀reach฀of฀the฀BlackBerry฀solution฀through฀the฀development฀
of฀additional฀carrier฀relationships.
Selected฀Quarterly฀Financial฀Data฀–฀Unaudited฀
2003฀Fiscal฀Year฀ ฀ Fourth฀Quarter฀ Third฀Quarter฀ Second฀Quarter฀ First฀Quarter
Revenue฀ ฀ $฀ 87,502฀ $฀ 74,176฀ $฀ 73,418฀ $฀ 71,636
Gross฀margin฀ ฀ ฀ 40,863฀ ฀ 34,506฀ ฀ 33,595฀ ฀ 31,153
Operating฀expenses฀**฀ ฀ 49,057฀ ฀ 58,056฀ ฀ 49,474฀ ฀ 47,758
Restructuring฀charge฀ ฀ ฀ –฀ ฀ 6,550(1)฀ ฀ –฀ ฀ –
Litigation฀฀ ฀ ฀ 25,540(2)฀ ฀ 27,760(2)฀ ฀ 4,910(2)฀ ฀ –
Investment฀income฀ ฀ ฀ (2,498)฀ ฀ (2,901)฀ ฀ (2,877)฀ ฀ (3,154)
Loss฀before฀income฀taxes฀ ฀ (31,236)฀ ฀(54,959)฀ ฀ (17,912)฀ ฀ (13,451)
Provision฀for฀(recovery฀of)฀income฀taxes฀฀ ฀ –(3)฀ ฀ 37,365(3)฀ ฀ (3,612)฀ ฀ (2,647)
Net฀loss฀ ฀ $฀ (31,236)฀ $฀(92,324)฀ $฀(14,300)฀ $฀(10,804)
Loss฀per฀share฀–฀basic฀and฀diluted฀ $฀ (0.40)฀ $฀ (1.20)฀ $฀ (0.18)฀ $฀ (0.14)
฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀
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(4)฀ ฀ 29,365
Operating฀expenses฀**฀ ฀ 44,377฀ ฀ 40,562฀ ฀ 39,756฀ ฀ 32,595
Restructuring฀charge฀ ฀ ฀ –฀ ฀ –฀ ฀ –฀ ฀ –
Litigation฀฀ ฀ ฀ –฀ ฀ –฀ ฀ –฀ ฀ –
Investment฀income฀ ฀ ฀ (4,331)฀ ฀ (5,164)฀ ฀ (7,076)฀ ฀ (9,167)
Income฀(loss)฀before฀write-down฀
฀ of฀investments฀and฀income฀taxes฀ ฀ (12,220)฀ ฀ (8,926)฀ ฀ (17,783)฀ ฀ 5,937
Write-down฀of฀investments฀ ฀ –฀ ฀ –฀ ฀ 5,350฀ ฀ –
Provision฀for฀(recovery฀of)฀income฀taxes฀฀ ฀ (3,670)฀ ฀ (2,668)฀ ฀ (5,614)฀ ฀ 2,089
Net฀income฀(loss)฀ ฀ $฀ (8,550)฀ $฀ (6,258)฀ $฀ (17,519)฀ $฀ 3,848
Earnings฀(loss)฀per฀share฀–฀basic฀and฀diluted฀ $฀ (0.11)฀ $฀ (0.08)฀ $฀ (0.22)฀ $฀ 0.05
**฀Operating฀expenses฀include฀research฀and฀development,฀sales,฀marketing฀and฀administration฀and฀amortization.
Notes:
(1)฀See฀Restructuring฀Charges฀later฀in฀this฀MD&A฀and฀note฀13฀to฀the฀Consolidated฀Financial฀Statements.
(2)฀See฀Patent฀Litigation฀later฀in฀this฀MD&A฀and฀note฀14฀to฀the฀Consolidated฀Financial฀Statements.
(3)฀See฀Income฀Taxes฀later฀in฀this฀MD&A฀and฀note฀8฀to฀the฀Consolidated฀Financial฀Statements.
(4)฀During฀the฀second฀quarter฀of฀scal฀2002,฀the฀Company฀recorded฀a฀write-down฀of฀$16.1฀million฀to฀the฀carrying฀values฀
of฀its฀inventories฀of฀legacy฀component฀raw฀materials.
(5)฀During฀the฀second฀quarter฀of฀scal฀2002,฀the฀Company฀recorded฀a฀bad฀debt฀provision฀of฀$6.9฀million฀to฀write฀down฀the฀
trade฀receivable฀balance฀of฀a฀large฀customer฀to฀its฀then฀estimated฀net฀realizable฀value.฀The฀provision฀was฀charged฀to฀Selling,฀
marketing฀and฀administration฀on฀the฀Consolidated฀Statement฀of฀Operations฀and฀Decit฀in฀the฀second฀quarter.
(6)฀The฀Company฀recorded฀a฀write-down฀of฀its฀investments฀in฀the฀amount฀of฀$5.3฀million฀during฀the฀second฀quarter฀of฀2002.
(7)฀During฀the฀fourth฀quarter฀of฀scal฀2002,฀the฀Company฀collected฀a฀portion฀of฀trade฀receivable฀monies฀previously฀
provided฀for,฀resulting฀in฀an฀income฀amount฀of฀$3.9฀million.฀This฀amount฀was฀recorded฀as฀a฀reduction฀to฀Selling,฀marketing฀
and฀administration฀expense฀in฀the฀fourth฀quarter.฀This฀is฀further฀described฀later฀in฀this฀MD&A฀under฀Selling,฀Marketing฀and฀
Administration฀Expenses.