Blackberry 2007 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 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

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
option grants with incorrect measurement dates.
Certain of the Company’s outside directors also received
in-the-money benefits from option grants with incorrect
measurement dates. As the selection of grant dates used on
grants made to outside directors was not apparent to those
directors, they were unaware that they were receiving grants
with dating issues.
Review Costs
Included in the Company’s selling, marketing and
administrative expenses in fiscal 2007 are legal, accounting
and other professional costs incurred by the Company
in fiscal 2007 as well as other costs incurred by the
Company under indemnity agreements in favor of certain
officers and directors of the Company, in each case in
connection with the Review, the Restatement and related
matters.
Mr. Balsillie and Mr. Lazaridis have voluntarily offered to
assist the Company in defraying costs incurred in connection
with the Review and the Restatement by contributing up to
CAD $10 million (up to CAD $5 million each) of those costs.
The Company has agreed to accept this voluntary payment,
which is expected to be recorded in fiscal 2008. The amounts
will be recorded when received as an increase to paid-in
capital.
Restatement of Financial Statements
The following tables set forth the effects of the restatement
on the Company’s consolidated statements of operations for
the fiscal year ended March 4, 2006 and February 26, 2005,
the consolidated balance sheet as at March 4, 2006 and the
effect on the Company’s net cash provided by operating
activities within the consolidated statements of cash flows for
the fiscal years ended march 4, 2006 and February 26, 2005.
Cash flows from financing and investing activities were not
affected by the Restatement.
Consolidated Statements of Operations
For the Year Ended March 4, 2006 For the Year Ended February 26, 2005
As Previously
Reported Restatement
Adjustments As Restated As Previously
Reported Restatement
Adjustments As Restated
Revenue $ 2,065,845 $ - $ 2,065,845 $ 1,350,447 $ - $1,350,447
Cost of sales 925,215 383 925,598 635,914 396 636,310
Gross margin 1,140,630 (383) 1,140,247 714,533 (396) 714,137
Expenses
Research and development 157,629 1,258 158,887 101,180 1,485 102,665
Selling, marketing and
administration 311,420 2,897 314,317 190,730 3,108 193,838
Amortization 49,951 - 49,951 35,941 - 35,941
Litigation 201,791 - 201,791 352,628 - 352,628
720,791 4,155 724,946 680,479 4,593 685,072
Income from operations 419,839 (4,538) 415,301 34,054 (4,989) 29,065
Investment income 66,218 - 66,218 37,107 - 37,107
Income before income taxes 486,057 (4,538) 481,519 71,161 (4,989) 66,172
Provision for (recovery of)
income taxes
Current 14,515 - 14,515 1,425 - 1,425
Deferred 89,464 2,884 92,348 (143,651) 2,786 (140,865)
103,979 2,884 106,863 (142,226) 2,786 (139,440)
Net income $ 382,078 $ (7,422) $ 374,656 $ 213,387 $ (7,775) $ 205,612
Earnings per share
Basic $ 2.02 $ (0.04) $ 1.98 $ 1.14 $ (0.04) $ 1.10
Diluted $ 1.96 $ (0.05) $ 1.91 $ 1.09 $ (0.05) $ 1.04