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2 RESEARCH IN MOTION ANNUAL REPORT 2011
Fiscal 2011 was another year of exceptional growth and accom-
plishment with consistent, strong financial performance, further
expansion of global market share, and record shipments of over
52 million BlackBerry® smartphones. These achievements are a
direct reflection of the dedication and hard work of more than
17,000 employees and the strength of our business partnerships
around the world. We are entering fiscal 2012 with a clear direction
and set of priorities that will leverage our strong competitive
advantages in order to capitalize on what we believe will be another
year of tremendous opportunities for Research In Motion. Our
confidence in the year ahead is made stronger by the talented
people in our organization, the groundwork we laid in Fiscal 2011,
and our continued commitment to innovation and growth. We
believe the new BlackBerry® PlayBook™ tablet and BlackBerry®
Tablet OS will redefine the limits of mobile computing and set the
stage for an exciting year of new product and service launches that
will further entrench the BlackBerry platform as one of the world’s
leading mobile platforms for both businesses and consumers.
Strong Financial Performance
RIM delivered record revenue and earnings growth in Fiscal 2011.
Revenue grew 33.1% over the prior year to a record $19.9 billion
and net income grew 38.8% to $6.34 per share fully diluted. We
continue to invest in innovation with Research and Development
expenses representing approximately 6.8% of revenue for the year.
Sales and marketing expense represented 12.1% of revenue as
we expanded these eorts to drive growth in international markets
and new market segments. RIM continues to have a strong balance
sheet and generated approximately $4 billion from cash operations
during fiscal 2011, exiting the year with approximately $1.8 billion
in cash and equivalents. We remain focused on building shareholder
value and we repurchased 37.2 million shares during the year. Fiscal
2011 was also busy in terms of corporate acquisitions with several
strong companies joining the RIM family of companies, including
QNX Systems, The Astonishing Tribe, Viigo and Cellmania.
Industry Leading Smartphone Technology
RIM is focused on high quality engineering and delivering a portfolio
of products and services that oer exceptional value and unique
mobile experiences for our customers. In Fiscal 2011, we launched
several successful smartphones including new additions to the
BlackBerry® Bold™, BlackBerry® Curve™ and BlackBerry® Pearl™
families of smartphones, as well as the new BlackBerry® Style™ and
BlackBerry® Torch™ smartphones. The BlackBerry Torch is the first
smartphone to feature a BlackBerry keyboard together with a full
touch screen display and the new BlackBerry® 6 operating system.
In 2010, BlackBerry was the #1 selling smartphone brand in a
number of markets around the world including the United States,
Canada, Latin America,1 and the United Kingdom.2 Heading into
the new fiscal year, we have an exciting roadmap of products and
services planned, including 4G tablets and a variety of new QWERTY,
hybrid and touch screen smartphone models.
The BlackBerry 6 operating system was launched on the
BlackBerry Torch smartphone last fall and is now available on a
range of BlackBerry smartphones. BlackBerry 6 delivers an
expanded and enhanced set of features, as well as a compelling
new user interface. Key features include a powerful Webkit browser
for an improved mobile internet experience, universal search for
quick access to information, and an integrated social networking
platform that allows users to send and receive updates on their
various social networking applications.
Global Success
Research In Motion’s global presence expanded substantially over
the past year as the attractiveness of BlackBerry smartphones in
prepaid and entry level segments helped drive record sales outside
of North America. International markets accounted for approxi-
mately 54% of revenue in fiscal 2011 versus 37% a year ago, and
BlackBerry products and services are now available through over
595 carriers and distribution channels in over 175 countries around
the world. The BlackBerry® Messenger (BBM™) service continues
to help drive growth in many markets as it becomes a preferred
mode of messaging for tens of millions of people across all walks
of life. There are now over 39 million BBM users globally and the
popularity of BBM continues to grow. RIM rolled out an integrated
marketing campaign featuring BBM over the past year which helped
drive strong adoption of the service in many markets, including
Latin America where BBM has achieved an impressive penetration
of more than 85% of BlackBerry subscribers in the region. Prepaid
BlackBerry service plans are also a significant growth driver, par-
Message from the Co-CEOs
1 IDC Worldwide Mobile Phones Quarterly Tracker – Final data – Q4 2010.
2 GfK R&T, Smartphones, Volume Sales, 2010 and Q4 2010