Blackberry 2003 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2003 Blackberry annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 56

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56

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
14
The฀Company’s฀comparative฀geographical฀revenue฀distribution฀is฀set฀out฀below:
฀ ฀ ฀ March฀1,฀2003฀ March฀2,฀2002฀ February฀28,฀2001
Sales฀ ฀ ฀
฀ Canada฀ $฀ 21,788฀ $฀ 21,381฀ $฀ 16,721
฀ United฀States฀ ฀ 255,466฀ ฀ 239,702฀ ฀ 204,606
฀ Europe/AsiaPac฀ ฀ 29,478฀ ฀ 32,970฀ ฀ –
฀ ฀ ฀ $฀ 306,732฀ $฀ 294,053฀฀ $฀ 221,327
฀ ฀ ฀
฀ Canada฀ ฀ 7.1%฀ ฀ 7.3%฀ ฀ 7.6%
฀ United฀States฀ ฀ 83.3%฀ ฀ 81.5%฀ ฀ 92.4%
฀ Europe/AsiaPac฀ ฀ 9.6%฀ ฀ 11.2%฀ ฀ –
฀ ฀ ฀ ฀ 100.0%฀ ฀ 100.0%฀ ฀ 100.0%
Trending฀into฀Fiscal฀2004฀
The฀Company฀believes฀its฀scal฀2003฀fourth฀quarter฀revenue฀and฀product฀mix฀is฀more฀indicative฀of฀
RIM’s฀growth฀prospects฀and฀trending฀heading฀into฀scal฀2004.฀The฀table฀below฀sets฀out฀the฀scal฀2003฀
quarterly฀data฀for฀reference:
฀ ฀ ฀ Fourth฀Quarter฀ Third฀Quarter฀ Second฀Quarter฀ First฀Quarter
Handhelds฀ ฀ $฀ 40,014฀ $฀ 27,517฀ $฀ 27,060฀ $฀ 28,120
Mix฀%฀ ฀ ฀ 45.7%฀ ฀ 37.1%฀ ฀ 36.9%฀ ฀ 39.3%
Service฀ ฀ ฀ 35,945฀ ฀ 32,728฀ ฀ 31,287฀ ฀ 29,371
Mix฀%฀ ฀ ฀ 41.1%฀ ฀ 44.1%฀ ฀ 42.6%฀ ฀ 41.0%
OEM,฀software,฀NRE,฀
฀ accessories฀and฀other฀฀ ฀ 11,543฀ ฀ 13,931฀ ฀ 15,071฀ ฀ 14,145
Mix฀%฀ ฀ ฀ 13.2%฀ ฀ 18.8%฀ ฀ 20.5%฀ ฀ 19.7%
฀ ฀ ฀ $฀ 87,502฀ $฀ 74,176฀ $฀ 73,418฀ $฀ 71,636฀
Handhelds
For฀scal฀2004,฀the฀Company฀is฀expecting฀revenue฀growth฀in฀its฀2.5G฀handheld฀product฀lines฀since฀
most฀of฀its฀current฀North฀American,฀European฀and฀AsiaPac฀carrier฀customers฀launched฀commercial฀2.5G฀
service฀during฀2003฀and฀will฀be฀offering฀BlackBerry฀to฀customers฀for฀the฀entire฀year,฀as฀opposed฀to฀only฀
the฀latter฀parts฀of฀scal฀2003.฀RIM฀expects฀the฀average฀selling฀price฀(“ASP”)฀for฀its฀2.5G฀handheld฀product฀
lines฀to฀decline฀in฀scal฀2004฀over฀2003฀as฀it฀is฀launching฀products฀for฀the฀prosumer฀market,฀which฀have฀
lower฀price฀points฀than฀for฀the฀enterprise฀market,฀similar฀to฀the฀cell฀phone฀industry.
Service
It฀is฀anticipated฀that฀the฀Company’s฀percentage฀growth฀rate฀for฀its฀service฀revenue฀will฀be฀lower฀than฀
the฀45.5%฀realized฀in฀scal฀2003,฀even฀though฀the฀BlackBerry฀subscriber฀base฀is฀expected฀to฀increase฀by฀
greater฀than฀45.5%.฀It฀is฀expected฀that฀the฀majority฀of฀the฀2004฀growth฀in฀the฀BlackBerry฀subscriber฀base,฀
over฀the฀approximately฀534,000฀as฀at฀March฀1,฀2003,฀will฀result฀from฀the฀unit฀sales฀growth฀of฀the฀2.5G฀
handheld฀product฀lines฀and฀subsequent฀BlackBerry฀subscriber฀activations.฀RIM’s฀ASP฀for฀service฀revenue฀
will฀decline฀as฀the฀percentage฀of฀its฀BlackBerry฀service฀revenue฀on฀2.5G฀networks.฀฀฀
OEM,฀software,฀NRE,฀accessories฀and฀other
The฀Company฀is฀expecting฀scal฀2004฀net฀revenue฀growth฀in฀its฀other฀revenue฀category฀comprised฀of฀
OEM,฀software,฀NRE,฀accessories฀and฀other.฀OEM฀growth฀will฀come฀from฀GPRS฀products฀introduced฀in฀
2003฀and฀software฀growth฀will฀generally฀correlate฀to฀revenue฀growth฀in฀handhelds฀and฀service฀revenue.฀
At฀the฀present฀time,฀the฀Company฀does฀not฀have฀any฀signicant฀contracts฀having฀a฀NRE฀component฀
and฀therefore฀is฀projecting฀a฀decline฀in฀2004฀for฀this฀revenue฀stream.฀Also,฀as฀NRE฀revenues฀are฀generally฀
“one-time”฀development฀projects฀for฀customers,฀this฀revenue฀stream฀is฀difcult฀to฀forecast.฀