Blackberry 2007 Annual Report Download - page 39

Download and view the complete annual report

Please find page 39 of the 2007 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 106

  • 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
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

37
relating to the NTP matter (see “Results of Operations-
Litigation” and note 13(b) to the Consolidated Financial
Statements). Fiscal 2007 net income also includes the effect
of the Company adopting SFAS 123(R), resulting in an after-
tax stock-based compensation expense in the amount of
$18.8 million, or $0.10 diluted EPS.
A more comprehensive analysis of these factors is
contained in “Results of Operations”.
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 for the four quarters in fiscal 2006 and
the first quarter of fiscal 2007. The second table presents the
adjustments relating to the Restatement as it applies to these
quarters. The third table presents the information reflecting
the Restatement on those quarters. The information has
been derived from RIM’s unaudited interim consolidated
financial statements that, in management’s opinion, have
been prepared on a basis consistent with the Consolidated
Financial Statements and include all adjustments necessary
for a fair presentation of information when read in
conjunction with the Consolidated Financial Statements.
RIM’s quarterly operating results have varied substantially in
the past and may vary substantially in the future. Accordingly,
the information below is not necessarily indicative of results
for any future quarter.
Fiscal Year 2007 Fiscal Year 2006
Fourth
Quarter Third
Quarter Second
Quarter First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
(as previously reported) (1)
(in thousands, except per share data)
Revenue $ 930,393 $ 835,053 $ 658,541 $ 613,116 $ 561,219 $ 560,596 $ 490,082 $ 453,948
Gross margin $ 497,358 $ 452,631 $ 370,085 $ 337,847 $ 308,653 $ 312,745 $ 269,015 $ 250,217
Research and development, Selling,
marketing and administration, and
Amortization 256,454 228,087 190,582 174,844 151,494 138,329 121,489 107,688
Litigation (2) - - - - 162,500 26,176 6,640 6,475
Investment income (14,794) (12,666) (12,606) (12,051) (19,219) (17,483) (15,700) (13,816)
Income before income taxes 255,698 237,210 192,109 175,054 13,878 165,723 156,586 149,870
Provision for (recovery of) income
taxes (3) 68,314 62,018 51,957 45,281 (4,476) 45,574 45,531 17,350
Net income $ 187,384 $ 175,192 $ 140,152 $ 129,773 $ 18,354 $ 120,149 $ 111,055 $ 132,520
Earnings per share
Basic $ 1.01 $ 0.95 $ 0.76 $ 0.70 $ 0.10 $ 0.63 $ 0.58 $ 0.70
Diluted $ 0.98 $ 0.92 $ 0.74 $ 0.68 $ 0.10 $ 0.61 $ 0.56 $ 0.67
Research and development $ 67,321 $ 61,184 $ 55,846 $ 51,518 $ 43,851 $ 41,567 $ 37,677 $ 34,534
Selling, marketing and administration 167,112 146,569 116,283 107,255 92,321 83,965 72,263 62,871
Amortization 22,021 20,334 18,453 16,071 15,322 12,797 11,549 10,283
$ 256,454 $ 228,087 $ 190,582 $ 174,844 $ 151,494 $ 138,329 $ 121,489 $ 107,688
Notes:
(1) See “Explanatory Note Regarding Restatement of Previously Issued Financial Statements” and note 4 to the Consolidated Financial
Statements.
(2) See “Results of Operations – Litigation” and note 13(b) to the Consolidated Financial Statements.
(3) See “Results of Operations – Income Taxes” and note 10 to the Consolidated Financial Statements.