Blackberry 2007 Annual Report Download - page 10

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8
the year in review
The BlackBerry subscriber account base increased to approximately 8 million users.
Fellow Shareholders:
Fiscal 2007 was a year of opportunity and accomplishment
for Research In Motion (RIM). Never before has RIM
delivered as many new products, entered as many markets,
or formed as many partnerships. These initiatives
significantly expanded the reach of the BlackBerry®platform
during the past year and have set the stage for an exciting
fiscal 2008.
We are grateful to our customers, partners and
shareholders for their support throughout the year. Your
confidence in our technology and business plans allowed the
BlackBerry platform to continue its leadership around the
world. We would also like to thank the Special Committee of
the Board of Directors and their advisors who contributed to
the in-depth review of RIM's stock option granting practices
that was completed at the end of the fiscal year. We have
already made significant progress to rectify matters identified
in the review and we continue to evolve our processes to be
consistent with our philosophy of achieving excellence
throughout RIM's operations.
During Fiscal 2007:
•Revenue grew 47% to over $3 billion;
• The BlackBerry subscriber account base increased to
approximately 8 million;
• Over 1 million BlackBerrysubscriber accounts wereadded
in a single quarter for the first time;
•Over 100 new carrier partners were added across the globe;
• Several groundbreaking new smartphones were
introduced, including the BlackBerry®Pearl™smartphone
with built-in camera and multimedia capabilities; the
BlackBerry®8800 smartphone with built-in GPS; the
BlackBerry®8703e smartphone for CDMA/EvDO networks
and the BlackBerry®8707 smartphone for UMTS networks;
• BlackBerry®Enterprise 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 whose talents and dedication
enabled RIM to once again achieve its goals and deliver
strong financial performance for shareholders.
Financial Results and Administration
Revenue in fiscal 2007 grew 47% to $3.04 billion as compared
to $2.07 billion in the previous year.Hardwarerepresented
the largest percentage of revenue at 73%, with service
contributing approximately 18% and software, accessories,
and other revenue contributing the remainder.
Gross margin for the year was 54.6%, down slightly from
the prior year. This decline was primarily related to the
increased percentage of revenue coming from smartphones,
such as the BlackBerry Pearl, that target broader market
segments with lower average selling prices. Weshipped
over 6 million handsets during the year,up 50% from fiscal
2006, and experienced strong sell-through to new customers
as well as a robust replacement cycle from customers
upgrading to newer BlackBerry smartphones.
Operating expenses for the year increased slightly as a
percentage of revenue. This increase stemmed from greater
investments in software and hardware development, new
marketing programs associated with the launch of the
BlackBerry Pearl into broader markets, as well as higher
administration expenses in the second half of the year.