Blackberry 2007 Annual Report Download

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RESEARCH IN MOTION 2007 ANNUAL REPORT

Table of contents

  • Page 1
    RESEARCH IN MOTION 2007 ANNUAL REPORT

  • Page 2
    everyone 1 everything 2 everywhere 5 every time 6 year in review 8 financial statements 13

  • Page 3
    ... usability and style. They need a BlackBerry® smartphone from Research In Motion. The BlackBerry® Curve™ smartphone is a perfect mobile companion for the well-rounded life. It offers all of the renowned BlackBerry smartphone functionality and ease-of-use plus many new consumer-friendly features...

  • Page 4
    ... intuitive, they help you get more from life-at work and at play. Snap and send a photo at the beach. Bring your favorite music, videos or podcasts wherever you go. Find your way with GPS and mapping applications. Search the web to settle bets on the spot. Send an email. And feel free to screen your...

  • Page 5
    The stylish BlackBerry® Pearl™ smartphone is one of the world's smallest smartphones, yet it's big on features: camera, media player, expandable memory slot, voice activated dialing and groundbreaking trackball navigation. 3

  • Page 6
    4

  • Page 7
    ... countries around the world, so people can leave the office, leave town or even leave the country without losing touch. The BlackBerry® 8800 Series offers quad-band GSM/GPRS and CDMA "World Edition" smartphones which support international roaming and include built-in GPS to help people get around...

  • Page 8
    .... It makes the most of available processing and network bandwidth to deliver superior performance and exceptionally long battery life. Users and organizations trust the BlackBerry platform for its industry-leading functionality, usability, reliability, manageability and security. Today, mobility is...

  • Page 9
    7

  • Page 10
    ... Server for MDS Applications and BlackBerry® Enterprise Server Express were launched; and • The number of devices available with BlackBerry® Connect™ software more than doubled with over 50 devices now supported by 80 carrier partners worldwide. We are also grateful to over 6,000 RIM employees...

  • Page 11
    ... dollars, except per share amounts) U.S. GAAP Statement of Operations data Revenue Gross margin Research & development and selling, marketing and administration Amortization Litigation Investment income Income before income taxes Provision for (recovery of) income taxes Net income Earnings per share...

  • Page 12
    ... Enterprise Server Express was launched for small businesses and BlackBerry Enterprise Server for MDS Applications was introduced to help meet the growing demand for mobile applications on the BlackBerry platform. Last year RIM acquired Ascendent Systems, a leading provider of enterprise voice...

  • Page 13
    ... the BlackBerry platform is the support and added value it receives from the large number of independent software vendors (ISVs) and other partners that make up the BlackBerry application ecosystem. These partners develop and enable a wide variety of enterprise and personal applications to work with...

  • Page 14
    ... customers and partners. Customer Care RIM's Customer Support Operations team has grown dramatically over the past year in order to support the global expansion of our customer base and offers 24x7 support for BlackBerry customers around the world. In the past year, we opened two new support centers...

  • Page 15
    ... and Analysis of Financial Condition and Results of Operations ("MD&A") should be read together with the audited consolidated financial statements and the accompanying notes (the "Consolidated Financial Statements") of Research In Motion Limited ("RIM" or the "Company") for the fiscal year ended...

  • Page 16
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 On October 13, 2006, in accordance with applicable Canadian securities laws, the Company contacted the OSC on behalf ...

  • Page 17
    ... option grants are validly issued options for accounting purposes and are enforceable against the Company, and any common shares issued upon exercise of these options are validly issued under Ontario corporate law. Subject to the remediation plan approved by the Board of Directors on March 2, 2007...

  • Page 18
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 The Special Committee determined that the Company failed to maintain adequate internal and accounting controls with ...

  • Page 19
    ...223.3 $ settlement" feature Share-based awards granted prior to the Stock Option Plan 9.2 Intrinsic value related to options issued 5.0 subsequent to February 27, 2002 5.0 Payroll taxes Pre-tax amount Tax impact of restatement After-tax impact on net income (2) Cumulative impact on retained earnings...

  • Page 20
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 (2) an allocation of all unrealized gains for unexercised stock options based on the stock's trading price at each ...

  • Page 21
    ... closing price of the Company's shares on the day prior to their start date. In some instances, however, the offer letter provided for pricing based on a date prior to the employee's start date (e.g., the date the prospective employee accepted the offer of employment or at a price representing a low...

  • Page 22
    ...IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 measurement date issues, and 12 grants to the co-CEOs involving options to acquire an aggregate of 2,000,000 common shares were...

  • Page 23
    ...earnings. For the periods commencing after the third quarter of fiscal 2005, the Company recorded in the statement of operations the tax benefit resulting from $7.3 million in tax deductions for stock option expenses in excess of the related compensation expense booked in the statement of operations...

  • Page 24
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 Benefits from Option Grants All directors and all C-level officers have agreed in respect of options that were ...

  • Page 25
    ...things, the Oversight Committee will examine executive compensation, the use of stock options as a compensation mechanism, trading by insiders, hiring practices and a general review of activities within the accounting and finance groups. The Oversight Committee will work cooperatively as appropriate...

  • Page 26
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 • Mr. Cork and Dr. Wright, who were members of the Company's Compensation Committee, advised the Board that they ...

  • Page 27
    ... affect the Company's Compensation Committee. Last, the pension fund seeks an order granting it leave to commence a derivative action in the name and on behalf of the Company relating to RIM's option granting practices, seeking damages and ancillary relief against certain of RIM's directors. RIM and...

  • Page 28
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 Consolidated Statements of Operations For the Year Ended March 4, 2006 As Previously Reported Restatement Adjustments ...

  • Page 29
    ... Short-term investments Trade receivables Other receivables Inventory Other current assets Deferred income tax asset Investments Capital assets Intangible assets Goodwill Liabilities Current Accounts payable Accrued liabilities Income taxes payable Deferred revenue Current portion of long-term debt...

  • Page 30
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 Cash flows from operating activities For the Year Ended March 4, 2006 As Previously Reported Restatement Adjustments ...

  • Page 31
    ... 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, short messaging service (SMS), Internet and intranet-based applications. RIM technology also...

  • Page 32
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 account should have an active status. That carrier is charged a service fee for each subscriber account each month ...

  • Page 33
    ... at the lower of cost and replacement cost. Work in process and finished goods inventories are stated at the lower of cost and net realizable value. Cost includes the cost of materials plus direct labor applied to the product and the applicable share of manufacturing overhead. Cost is determined on...

  • Page 34
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 demand. The Company performs an assessment of inventory during each reporting period, which includes a review of, ...

  • Page 35
    ... of its devices product lines. Earnings Sensitivity The Company estimates that a 10% change to either the current average unit warranty repair cost, measured against the device sales volumes currently under warranty as at March 3, 2007, or to the current average warranty return rate, would have...

  • Page 36
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 The Company uses the flow-through method to account for investment tax credits ("ITCs") earned on eligible scientific ...

  • Page 37
    ... per share amounts) Revenue Cost of sales Gross margin Expenses Research and development Selling, marketing and administration Amortization Sub-total Litigation (2) Income from operations Investment income Income before income taxes Provision for (recovery of) income taxes (3) Net income Earnings...

  • Page 38
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 The following table sets forth certain consolidated statement of operations data expressed as a percentage of revenue ...

  • Page 39
    ...quarter. Selected Quarterly Financial Data The following tables set forth RIM's restated unaudited quarterly consolidated results of operations data for each of the eight most recent quarters, including the quarter ended March 3, 2007. The first table presents the information as previously reported...

  • Page 40
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 Fourth Quarter Fiscal Year 2007 Third Second Quarter Quarter Fiscal Year 2006 Third Second Quarter Quarter (...

  • Page 41
    .... The consolidated statement of operations information below for the fiscal year ended March 4, 2006 has been restated. See "Explanatory Note Regarding Restatement of Previously Issued Financial Statements" and note 4 to the Consolidated Financial Statements. Revenue Revenue for fiscal 2007 was...

  • Page 42
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 The decrease in gross margin percentage relating to the increase in percentage of device shipments was offset in part ...

  • Page 43
    ... 2007 compared to $23.2 million in fiscal 2006. See also notes 1(l) and 8 to the Consolidated Financial Statements and "Critical Accounting Policies and Estimates - Valuation of long-lived assets, intangible assets and goodwill". they are used in connection with the Company's products and services...

  • Page 44
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 deferred income tax provision as a result of a favorable tax ruling involving another Canadian technology corporation,...

  • Page 45
    ...14 to the Consolidated Financial Statements); • A decline in amortization expense as a percentage of consolidated revenue, as the Company continues to realize economies of scale in its manufacturing operations; and • An increase in non-warranty repair revenues. Research and Development, Selling...

  • Page 46
    ... IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 Fiscal Year Ended March 4, 2006 % of Revenue February 26, 2005 % of Revenue (as previously reported) $ $ Revenue Research and...

  • Page 47
    ...method of accounting was insignificant for fiscal years 2006 and 2005. See also notes 2 and 7 to the Consolidated Financial Statements. Cost of sales Amortization expense with respect to capital assets employed in the Company's manufacturing operations and BlackBerry service operations increased to...

  • Page 48
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 2006. The agreement eliminated the need for any further court proceedings or decisions relating to damages or ...

  • Page 49
    ...) Revenue Cost of sales Gross margin Expenses Research and development Selling, marketing and administration Amortization Sub-total Litigation (2) Income (loss) from operations Investment income Earnings before income taxes Provision for (recovery of) income taxes (3) Net income Earnings per share...

  • Page 50
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 Revenue Revenue for the fourth quarter of fiscal 2007 was $930.4 million, an increase of $369.2 million, or 65.8%, ...

  • Page 51
    ... 2007 given the quarterly increases in revenue realized by the Company during fiscal 2007. Three Month Fiscal Periods Ended March 3, 2007 $ % of Revenue December 2, 2006 $ % of Revenue March 4, 2006 (as restated) $ % of Revenue Revenue Research and development Selling, marketing and administration...

  • Page 52
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 to earnings in the amount of $162.5 million was recorded in operating results in the three-month period ending March ...

  • Page 53
    ... taxes Share-based payment Changes in: Trade receivables Other receivables Inventory Accounts payable Accrued liabilities All other Changes in working capital items - before NTP litigation items Litigation provision Restricted cash Cash provided from operating activities $ 631,572 126,355 101...

  • Page 54
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 Aggregate Contractual Obligations The following table sets out aggregate information about the Company's contractual ...

  • Page 55
    ... and services. The Company is experiencing significant sales growth in North America and internationally, resulting in the growth in its carrier customer base in terms of numbers, sales and trade receivables Accounting for Certain Hybrid Financial Instruments In February 2006, the FASB issued SFAS...

  • Page 56
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 beginning after September 15, 2006 and the Company will be required to adopt the standard in the first quarter of ...

  • Page 57
    ...Committee, Compensation Committee, and Nominating Committee, and has changed various management roles. • Other Changes - The Company is in the process of establishing an internal audit department, the head of which will report directly to the Audit Committee. Additionally, the Company is enhancing...

  • Page 58
    RESEARCH IN MOTION LIMITED management's discussion and analysis of financial condition and results of operations continued FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007 • the conclusion of the Special Committee upon completion of the Review, as disclosed by the Company in a press ...

  • Page 59
    ... have issued an audit report on management's assessment of the Company's internal control over financial reporting. This report is included with the Consolidated Financial Statements. Changes in Internal Control Over Financial Reporting Except as described above, during the fiscal year ended March...

  • Page 60
    ... of Research In Motion Limited is responsible for the preparation and presentation of the Consolidated Financial Statements and all of the financial information in this Annual Report. The Consolidated Financial Statements were prepared in accordance with United States generally accepted accounting...

  • Page 61
    ... Directors and Shareholders of Research In Motion Limited We have audited management's assessment, included in Management's Discussion and Analysis of Financial Condition and Results of Operations for the Three Months and Fiscal Year Ended March 3, 2007, that Research In Motion Limited (the "Company...

  • Page 62
    ...' report on consolidated financial statements To the Shareholders of Research In Motion Limited We have audited the consolidated balance sheets of Research In Motion Limited (the "Company") as at March 3, 2007 and March 4, 2006 and the consolidated statements of operations, shareholders' equity...

  • Page 63
    RESEARCH IN MOTION LIMITED Incorporated under the Laws of Ontario consolidated balance sheets (United States Dollars, in thousands) As at March 3, 2007 March 4, 2006 (Restated - note 4) Assets Current Cash and cash equivalents (note 5) Short-term investments (note 5) Trade receivables Other ...

  • Page 64
    RESEARCH IN MOTION LIMITED consolidated statements of shareholders' equity (United States Dollars, in thousands) Capital Stock Paid-In Capital Retained Earnings (Deficit) Accumulated Other Comprehensive Income (Loss) Total Balance as at February 28, 2004 - as previously reported Adjustment to...

  • Page 65
    RESEARCH IN MOTION LIMITED consolidated statements of operations (United States dollars, in thousands, except per share data) For the Year Ended March 3, 2007 March 4, 2006 (Restated - note 4) February 26, 2005 (Restated - note 4) Revenue Devices and other Service and software Cost of sales ...

  • Page 66
    RESEARCH IN MOTION LIMITED consolidated statements of cash flows (United States dollars, in thousands) For the Year Ended March 3, 2007 March 4, 2006 (Restated - note 4) February 26, 2005 (Restated - note 4) Cash flows from operating activities Net income Items not requiring an outlay of cash: ...

  • Page 67
    ... notes to the consolidated financial statements For the Years Ended March 3, 2007, March 4, 2006 and February 26, 2005 In thousands of United States dollars, except share and per share data, and except as otherwise indicated NATURE OF BUSINESS Research In Motion Limited ("RIM" or the "Company") is...

  • Page 68
    RESEARCH IN MOTION LIMITED notes to the consolidated financial statements continued For the Years Ended March 3, 2007, March 4, 2006 and February 26, 2005 In thousands of United States dollars, except share and per share data, and except as otherwise indicated ended March 3, 2007 (March 4, 2006 - ...

  • Page 69
    ... at the lower of cost and replacement cost. Work in process and finished goods inventories are stated at the lower of cost and net realizable value. Cost includes the cost of materials plus direct labour applied to the product and the applicable share of manufacturing overhead. Cost is determined on...

  • Page 70
    RESEARCH IN MOTION LIMITED notes to the consolidated financial statements continued For the Years Ended March 3, 2007, March 4, 2006 and February 26, 2005 In thousands of United States dollars, except share and per share data, and except as otherwise indicated The Company has used the flow-through...

  • Page 71
    ... 2007, the Company accounted for stockbased compensation using Accounting Principles Board ("APB ") No. 25, Accounting for Stock Issued to Employees ("APB 25") and related interpretations. Under APB 25, compensation expense is measured as of the date on which the number of shares and exercise price...

  • Page 72
    RESEARCH IN MOTION LIMITED notes to the consolidated financial statements continued For the Years Ended March 3, 2007, March 4, 2006 and February 26, 2005 In thousands of United States dollars, except share and per share data, and except as otherwise indicated Company's stock as of the end of the ...

  • Page 73
    ... in the financial statements for all new and unvested stock options that are ultimately expected to vest as the requisite service is rendered beginning in the Company's fiscal 2007 year. Stock-based compensation expense for awards granted prior to fiscal 2007 is based on the grant-date fair value as...

  • Page 74
    ... Company's Chief Operating Officer - Administration and Operations), with the support of Jim Balsillie, the CoChief Executive Officer of the Company, and the executive management team of the Company. Following the recusal of two Audit Committee members who also served on the Compensation Committee...

  • Page 75
    ...exercise of these options are validly issued under Ontario corporate law. Subject to the remediation plan approved by the Board of Directors on March 2, 2007, it is also the Company's intention to honor its commitment to issue shares when 73 Accounting for Stock Based Compensation ("SFAS 123"), and...

  • Page 76
    ... used to select grant dates with favorable pricing on grants and in limited instances grant dates were selected based on low prices over a future period, resulting in grantees receiving an in-the-money option that was not recorded in the financial statements as stock-based compensation. The Special...

  • Page 77
    ...-based awards granted prior to the Stock Option Plan 9.2 Intrinsic value related to options issued subsequent to February 27, 5.0 2002 5.0 Payroll taxes Pre-tax amount Tax impact of restatement After-tax impact on net income (2) Cumulative impact on retained earnings (deficit) Selected share price...

  • Page 78
    ...officers, the Company looked to objective evidence supporting the approval of the number and exercise price (2) Share-Based Awards Granted Prior to the Stock Option Plan Prior to the IPO and the Company's adoption of the Stock Option Plan, the Company issued 444,000 restricted Class A Common Shares...

  • Page 79
    ... sufficient objective evidence does exist to support the determination of appropriate measurement dates. The Company has aggregated grants into the following general types: employee accepted the offer of employment or at a price representing a low trading price between the date of the offer letter...

  • Page 80
    RESEARCH IN MOTION LIMITED notes to the consolidated financial statements continued For the Years Ended March 3, 2007, March 4, 2006 and February 26, 2005 In thousands of United States dollars, except share and per share data, and except as otherwise indicated the resulting exercise price was ...

  • Page 81
    ... in earnings. For the periods commencing after the third quarter of fiscal 2005, the Company recorded in the statement of operations the tax benefit resulting from $7.3 million in tax deductions from stock option expenses in excess of the related compensation expense booked in the statement of...

  • Page 82
    .... Consolidated Statements of Operations For the Year Ended March 4, 2006 As Previously Reported Restatement Adjustments As Restated For the Year Ended February 26, 2005 As Previously Reported Restatement Adjustments As Restated Revenue Cost of sales Gross margin Expenses Research and development...

  • Page 83
    ... Short-term investments Trade receivables Other receivables Inventory Other current assets Deferred income tax asset Investments Capital assets Intangible assets Goodwill Liabilities Current Accounts payable Accrued liabilities Income taxes payable Deferred revenue Current portion of long-term debt...

  • Page 84
    RESEARCH IN MOTION LIMITED notes to the consolidated financial statements continued For the Years Ended March 3, 2007, March 4, 2006 and February 26, 2005 In thousands of United States dollars, except share and per share data, and except as otherwise indicated The following is a summary of the ...

  • Page 85
    ... 12 months and their related fair values were as follows: Less than 12 months Fair Value Unrealized losses 12 months or more Fair Value Unrealized losses Fair Value Total Unrealized losses As at March 3, 2007 Government sponsored enterprise notes Commercial paper and corporate bonds Asset-backed...

  • Page 86
    RESEARCH IN MOTION LIMITED notes to the consolidated financial statements continued For the Years Ended March 3, 2007, March 4, 2006 and February 26, 2005 In thousands of United States dollars, except share and per share data, and except as otherwise indicated 6. INVENTORY March 3, 2007 March 4, ...

  • Page 87
    ... the acquirees' operations have been included in the consolidated financial statements commencing from each respective closing date to March 3, 2007. During the first quarter of fiscal 2006, the Company purchased 100% of the common shares of a company whose proprietary software was incorporated into...

  • Page 88
    RESEARCH IN MOTION LIMITED notes to the consolidated financial statements continued For the Years Ended March 3, 2007, March 4, 2006 and February 26, 2005 In thousands of United States dollars, except share and per share data, and except as otherwise indicated The following table summarizes the ...

  • Page 89
    ... differences: As at March 3, 2007 March 4, 2006 Assets Financing costs Non-deductible reserves Research and development incentives Tax loss carryforwards Unrealized losses on financial instruments Other tax carryforwards Net deferred income tax assets Liabilities Capital assets Unrealized gains on...

  • Page 90
    RESEARCH IN MOTION LIMITED notes to the consolidated financial statements continued For the Years Ended March 3, 2007, March 4, 2006 and February 26, 2005 In thousands of United States dollars, except share and per share data, and except as otherwise indicated The Company determined that it was ...

  • Page 91
    ... 2004 share issue financing costs. (b) Share-based payment Stock Option Plan The Company has an incentive stock option plan for directors, officers and employees of the Company or its subsidiaries. Prior to fiscal 2007, the Company accounted for stock-based compensation using APB 25 and related...

  • Page 92
    ... stock-based compensation awards as a financing activity in the consolidated statement of cash flows. Options granted under the plan generally vest over a period of five years and are generally exercisable over a period of seven years to a maximum of ten years from the grant date. The Company issues...

  • Page 93
    ... The intrinsic value of stock options exercised during fiscal 2007, calculated using the average market price during the year, was approximately $84 per share. A summary of unvested stock options since March 4, 2006 is shown below: Options Outstanding Weightedaverage grant date fair value Number in...

  • Page 94
    ... fiscal years and has no current expectation of paying cash dividends on its common stock. The risk-free interest rates utilized during the life of the stock option are based on a U.S. Treasury security for an equivalent period. The Company estimates the volatility of its common stock at the date of...

  • Page 95
    ...its customers as part of the settlement. The action was dismissed by the court on July 12, 2006. By letter dated February 16, 2004, T-Mobile Deutschland GmbH ("TMO-DG") and T-Mobile International AG (collectively, "TMO") served RIM's wholly-owned UK subsidiary, Research In Motion UK Limited ("RIM-UK...

  • Page 96
    ...damages or recoveries and the ultimate amounts, if any, with respect to the Neomax Litigation (or any related litigation) is not determinable. Accordingly, no amount has been recorded in these consolidated financial statements as at March 3, 2007. On May 9, 2005, RIM-UK filed an action against Inpro...

  • Page 97
    ... financial statements as at March 3, 2007. On January 24, 2007, RIM was served with a Notice of Application that was filed with the Ontario Superior Court of Justice - Commercial List by a pension fund that alleges it was a shareholder, seeking various orders against the Company and named directors...

  • Page 98
    RESEARCH IN MOTION LIMITED notes to the consolidated financial statements continued For the Years Ended March 3, 2007, March 4, 2006 and February 26, 2005 In thousands of United States dollars, except share and per share data, and except as otherwise indicated 14. PRODUCT WARRANTY The Company ...

  • Page 99
    ... basic and diluted earnings per share available to common shareholders Weighted-average number of shares outstanding (000's) - basic Effect of dilutive securities: Employee stock options Weighted-average number of shares and assumed conversions - diluted Earnings per share - reported Basic Diluted...

  • Page 100
    RESEARCH IN MOTION LIMITED notes to the consolidated financial statements continued For the Years Ended March 3, 2007, March 4, 2006 and February 26, 2005 In thousands of United States dollars, except share and per share data, and except as otherwise indicated 18. SUPPLEMENTAL INFORMATION (a) ...

  • Page 101
    ... the British Pound, Canadian dollar, and Euro. As part of its risk management strategy, the Company maintains net monetary asset and/or liability balances in foreign currencies and engages in foreign currency hedging activities using derivative financial instruments, including currency forward...

  • Page 102
    RESEARCH IN MOTION LIMITED notes to the consolidated financial statements continued For the Years Ended March 3, 2007, March 4, 2006 and February 26, 2005 In thousands of United States dollars, except share and per share data, and except as otherwise indicated The Company has entered into forward ...

  • Page 103
    ...Company is organized and managed as a single reportable business segment. The Company's operations are substantially all related to the research, design, manufacture and sales of wireless communications products, services and software. Selected financial information is as follows: For the year ended...

  • Page 104
    ... Stock Exchange Symbol: RIM corporate office Research In Motion Limited 295 Phillip Street Waterloo, Ontario, N2L 3W8 corporate website www.rim.com Douglas Wright, O.C. President Emeritus, University of Waterloo 1 2 3 Member of the Audit Committee. Member of the Compensation Committee. Member...

  • Page 105
    © 2007 Research In Motion Limited. All rights reserved. Research In Motion, the RIM logo, BlackBerry, the BlackBerry logo, BlackBerry Pearl and BlackBerry Curve are trademarks of Research In Motion Limited. All other brands, product names, company names, trademarks and service marks are the ...

  • Page 106
    295 Phillip Street Waterloo, Ontario, Canada N2L 3W8 www.rim.com T: 519.888.7465 F: 519.888.6906 E: [email protected]