Research In Motion reports $90.1 million revenue for fourth quarter and $221.3 million for the year

Apr 11, 2001, 01:00 ET from Research In Motion Limited

    WATERLOO, ON, April 11 /PRNewswire/ - Research In Motion Limited (RIM)
 (Nasdaq:   RIMM, TSE: RIM), a world leader in the mobile communications market,
 today reported fourth quarter and year end results for the three months and
 fiscal year ended February 28, 2001. (all figures in US $ and Canadian GAAP)
     Revenue for the fourth quarter of fiscal 2001 was $90.1 million. This
 marks a 46% increase over the prior quarter's revenue of $61.6 million and a
 249% increase over the $25.8 million generated in the fourth quarter of last
 year. BlackBerry(TM) subscriber growth continues to be a main revenue driver.
 As well, shipments of RIM(R) Wireless Handhelds(TM) to AOL contributed to the
 significant growth. BlackBerry accounted for approximately 48% of the
 Company's quarterly revenue. RIM Wireless Handhelds accounted for 45% and OEM
 radio modems accounted for 7%.
     Revenue increased to $221.3 million for the year ended February 28, 2001,
 representing an increase of 160% over the prior year. The increase for the
 year was primarily due to substantial growth in RIM Wireless Handheld
 shipments and BlackBerry subscribers. At the end of February there were
 approximately 164,000 BlackBerry subscribers in 7,800 companies.
     "The results reported today mark the completion of another outstanding
 year for RIM," said Jim Balsillie, Chairman and Co-CEO. "BlackBerry continues
 its growth as the leading wireless email platform for the North American
 enterprise market; and we are well positioned for our entry to new
 international markets with next-generation products. We have the resources
 necessary to execute our business plan and extend our competitive lead; and we
 expect to repeat our success during the upcoming year."
     Proforma net income for the quarter was $8.3 million or $0.11 per share
 ($0.10 diluted) compared with a net income of $1.5 million in the prior
 quarter and a net income of $3.2 million in the same quarter last year. For
 the year, proforma net income was $8.5 million or $0.12 per share ($0.11
 diluted) compared to net income of $10.5 million or $0.16 per share ($0.14
 diluted).
     Due to macroeconomic and financial market conditions, several of RIM's
 long-term investments have experienced significant non-temporary declines in
 their value. As a result, RIM has taken a one-time write-down of $14.75
 million. After accounting for this one-time write-down, the net loss for the
 quarter was $6.5 million ($0.08 per share). For the year, the net loss was
 $6.2 million ($0.08 per share).
     Gross research and development expenditures for the quarter were $9.1
 million, or 10% of revenue, compared to $6.7 million in the prior quarter, or
 11% of revenue, and $3.7 million, or 14% of revenue, in the fourth quarter
 last year. For the year, gross R&D expenditures were $25.7 million as compared
 to $12.2 million in the previous year, which represents an increase of 110%.
 R&D expenditures, net of government funding, for the quarter were $7.1
 million.
     Selling, marketing and administration expenses were $22.3 million, or 25%
 of revenue, for the quarter compared to $16.9 million, or 27% of revenue in
 the previous quarter and $5.1 million, or 20% of revenue, in the fourth
 quarter of last year. Planned investments in BlackBerry marketing, co-
 operative marketing programs, and staffing increases in sales, marketing, and
 customer support have contributed to the increase. For the year, selling,
 marketing and administration expenses were $65.2 million.
     Cash, cash equivalents and marketable securities were $721.9 million at
 February 28, 2001 as compared to $733.9 million in the previous quarter.
 
     Highlights of the fourth quarter:
 
     - RIM announced the appointment of Larry Conlee as Chief Operating
       Officer of Engineering and Manufacturing. Mr. Conlee joined RIM with
       over twenty years of international experience in corporate senior
       management at Motorola.
 
     - RIM announced its first major European supply agreement for BlackBerry.
       Under the terms of the agreement, RIM will supply BT Cellnet with
       BlackBerry Enterprise Edition for distribution in the UK. The supply
       agreement includes an initial commitment from BT Cellnet to order
       175,000 BlackBerry Wireless Handhelds with associated software and
       service.
 
     - BlackBerry Enterprise Edition for Lotus(R) Domino(TM) was introduced.
       The announcement approximately doubles the number of enterprise
       customers that now have the ability to stay wirelessly connected to
       their corporate email through BlackBerry. It also marks the first
       wireless handheld solution to offer tight integration with Lotus Notes
       and Domino together with end-to-end security and
       'Always On, Always Connected' operation.
 
     - RIM and IBM joined forces to provide BlackBerry to companies
       internationally. IBM Global Services is adding BlackBerry-based
       solutions to its portfolio of wireless solutions and establishing a
       team to focus on the integration of BlackBerry with enterprise email
       and intranet backend systems. IBM will provide business consulting and
       design services, as well as systems integration services.
 
     - Vaultus and RIM formed a strategic alliance to deliver wireless
       solutions that enable enterprise customers to reduce costs and gain
       greater sales efficiencies. Under the terms of the agreement, RIM will
       supply Vaultus a minimum of 50,000 BlackBerry Wireless Handhelds with
       associated software and services within the next two years.
 
     - AvantGo and RIM announced a strategic alliance focused on delivering
       wireless Web-based data and corporate applications to Fortune 1000
       customers. The companies will co-market existing and future products
       and services to enterprise customers and channel partners.
 
     - The BlackBerry Wireless Email Solution was added to several government
       purchasing contracts including the U.S. government GSA schedule.
 
     - Kasten Chase and RIM announced an agreement focused on providing secure
       wireless access to the U.S. Government's Defense Message System (DMS)
       via BlackBerry. The integrated RASP Data Security/BlackBerry solution
       will be designed to meet government standards for remote access to DMS.
       Kasten Chase will also market the solution to government end-user
       organizations and select BlackBerry government resellers.
 
     - E(x)TRADE launched its integrated brokerage and banking solution on the
       award-winning RIM Wireless Handhelds.
 
     - BlackBerry Enterprise Edition for Lotus Domino received the Gold Award
       from Lotus Advisor magazine. RIM Wireless Handhelds also received top
       awards from eWeek magazine and Smart Business magazine.
 
     Highlights subsequent to quarter end:
 
     - RIM announced another major breakthrough in wireless enterprise
       applications with the introduction of wireless calendar support for
       BlackBerry. With wireless calendar synchronization, BlackBerry
       Enterprise Server and BlackBerry Wireless Handhelds exchange calendar
       events wirelessly and securely. The user's online calendar and handheld
       calendar are automatically synchronized over-the-air without need of a
       cradle.
 
     - GoAmerica and RIM announced that Go.Web(TM) version 6.0 will be bundled
       with BlackBerry. Go.Web 6.0 includes enhanced features for mobile
       access to web and corporate information.
 
     - The BlackBerry Wireless Handheld was awarded the FIPS 140-1 Validation
       for its embedded encryption technology by the National Institute of
       Standards and Technology (NIST). FIPS 140-1 Validation is an important,
       and often mandatory, purchasing criteria for many organizations and
       will help facilitate continued adoption of BlackBerry in the government
       sector.
 
     - Wynd Communications and RIM demonstrated the WyndTell accessibility
       solution at the FOSE 2001 show. WyndTell with RIM Wireless Handhelds is
       designed to meet the needs of people who are deaf or hard of hearing by
       enabling users to communicate using two-way technology.
 
     - Yahoo! and Motient added RIM 857 Wireless Handheld support allowing
       wireless access to Yahoo! content and services via Motient's wireless
       data network.
 
     - Lucent Technologies and RIM announced an alliance focused on
       accelerating commercialization of third generation (3G) mobile
       solutions. Lucent and RIM will cooperate in interoperability testing
       for next-generation networks and coordinate trials with mobile network
       operators around the world.
 
     - RIM has signed memoranda of understanding with two additional European
       carriers to offer BlackBerry to their corporate customers. Esat
       Digifone (in Ireland) and Telfort Mobiel B.V. (in The Netherlands) are
       deploying a nation-wide GPRS network in its respective country that
       will support the BlackBerry wireless email solution.
 
     The replay of the Company's Q4 conference call can be accessed after 8
 p.m. (eastern time) April 11, 2001 until midnight (eastern time) April 18,
 2001. It can be accessed by calling (416) 626-4100 and entering reservation
 number 18450978. The conference call can also be accessed via our web site,
 live and archived, at http://www.rim.net/investors/index.shtml.
 
     About Research In Motion
     Research In Motion Limited is a leading designer, manufacturer and
 marketer of innovative wireless solutions for the mobile communications
 market. Through development and integration of hardware, software and
 services, RIM provides solutions for seamless access to time-sensitive
 information including email, messaging, Internet and intranet-based
 applications. RIM technology also enables a broad array of third party
 developers and manufacturers around the world to enhance their products and
 services with wireless connectivity. RIM's portfolio of award-winning products
 includes the RIM Wireless Handheld(TM) product line, the BlackBerry(TM)
 wireless email solution, embedded radio-modems and software development tools.
 Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in
 Canada, the United States and England. RIM is listed on the Nasdaq Stock
 Market (Nasdaq:   RIMM) and the Toronto Stock Exchange (TSE: RIM). For more
 information, visit www.rim.net. Investors may contact
 investor_relations@rim.net. Customers may contact info@rim.net.
 
     Research In Motion, RIM, the RIM logo, the RIM Wireless Handheld family
 of marks, BlackBerry and the BlackBerry logo are trademarks of Research In
 Motion Limited. Research In Motion, RIM and 'Always On, Always Connected' are
 registered with the U.S. Patent and Trademark Office. All other brands,
 products and company names mentioned herein may be trademarks or registered
 trademarks of their respective holders. Forward-looking statements in this
 news release are made pursuant to the "safe harbor" provisions of the United
 States Private Securities Litigation Reform Act of 1995. Investors are
 cautioned that such forward-looking statements involve risks and
 uncertainties, including, without limitation, risks relating to possible
 product defects and product liability, risks related to international sales
 and potential foreign currency exchange fluctuations, continued acceptance of
 RIM's products, increased levels of competition, technological changes,
 dependence on intellectual property rights and other risks detailed from time
 to time in RIM's periodic reports filed with the United States Securities and
 Exchange Commission and other regulatory authorities.
 
 
                PROFORMA CONSOLIDATED STATEMENTS OF OPERATIONS
     Excluding one-time write-down of long-term investments of $14.75 million
 
                                       For the three         For the year
                                        months ended            ended
     (in US $000's, except for
      proforma earnings per share)  February   February   February   February
                                    28, 2001   29, 2000   28, 2001   29, 2000
     -------------------------------------------------------------------------
                                       (unaudited)
 
     Revenue                        $ 90,079   $ 25,801   $221,327   $ 84,967
     Cost of sales                    55,593     15,534    133,852     48,574
                                    ------------------------------------------
     Gross margin                     34,486     10,267     87,475     36,393
                                    ------------------------------------------
 
     Research and development          7,141      1,587     18,281      7,738
     Selling, marketing and
      administration                  22,272      5,082     65,200     13,904
     Amortization                      3,212      1,706      8,645      4,683
                                    ------------------------------------------
                                      32,625      8,375     92,126     26,325
                                    ------------------------------------------
 
     Income (loss) from operations     1,861      1,892     (4,651)    10,068
 
     Investment income                11,238      2,995     22,921      5,968
                                    ------------------------------------------
 
     Income before provision for
      income taxes                    13,099      4,887     18,270     16,036
 
     Provision for income taxes        4,819      1,679      9,731      5,538
                                    ------------------------------------------
 
     Proforma net income            $  8,280   $  3,208   $  8,539   $ 10,498
                                    ------------------------------------------
                                    ------------------------------------------
 
     Proforma earnings per share,
      basic                         $   0.11   $   0.05   $   0.12   $   0.16
     Proforma earnings per share,
      diluted                       $   0.10   $   0.04   $   0.11   $   0.14
 
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Weighted average number of
      common shares outstanding (000's)
       Basic                          78,012     70,535     73,555     66,613
       Diluted                        84,044     77,225     79,586     72,996
     -------------------------------------------------------------------------
 
 
                      CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                       For the three         For the year
                                        months ended            ended
     (in US $000's, except for
      earnings (loss) per share)    February   February   February   February
                                    28, 2001   29, 2000   28, 2001   29, 2000
     -------------------------------------------------------------------------
                                       (unaudited)
 
     Revenue                        $ 90,079   $ 25,801   $221,327   $ 84,967
     Cost of sales                    55,593     15,534    133,852     48,574
                                    ------------------------------------------
     Gross margin                     34,486     10,267     87,475     36,393
                                    ------------------------------------------
 
     Research and development          7,141      1,587     18,281      7,738
     Selling, marketing and
      administration                  22,272      5,082     65,200     13,904
     Amortization                      3,212      1,706      8,645      4,683
                                    ------------------------------------------
                                      32,625      8,375     92,126     26,325
                                    ------------------------------------------
 
     Income (loss) from operations     1,861      1,892     (4,651)    10,068
 
     Investment income                11,238      2,995     22,921      5,968
                                    ------------------------------------------
 
     Income before write-down of
      long-term investments and
      provision for income taxes      13,099      4,887     18,270     16,036
 
     Write-down of long-term
      investments                     14,750          -     14,750          -
                                    ------------------------------------------
 
     Income (loss) before provision
      for income taxes                (1,651)     4,887      3,520     16,036
 
     Provision for income taxes        4,819      1,679      9,731      5,538
                                    ------------------------------------------
 
     Net income (loss)              $ (6,470)  $  3,208   $ (6,211)  $ 10,498
                                    ------------------------------------------
                                    ------------------------------------------
 
     Earnings (loss) per share,
      basic                         $  (0.08)  $   0.05   $  (0.08)  $   0.16
     Earnings (loss) per share,
      diluted                       $  (0.08)  $   0.04   $  (0.08)  $   0.14
 
     -------------------------------------------------------------------------
 
     Weighted average number
      of common shares
      outstanding (000's)
       Basic                          78,012     70,535     73,555     66,613
       Diluted                        84,044     77,225     79,586     72,996
     -------------------------------------------------------------------------
 
 
                             CONSOLIDATED BALANCE SHEETS
 
 
     As at                                      February 28,     February 29,
     (in US $000's)                                    2001             2000
     -------------------------------------------------------------------------
 
 
     Current assets
     Cash and cash equivalents                     $ 508,822        $     126
     Marketable securities                           213,105          218,116
     Trade receivables                                50,268           27,239
     Other receivables                                13,894            6,035
     Inventory                                        68,044           36,852
     Prepaid expenses                                  2,932            6,014
                                                   ---------------------------
                                                     857,065          294,382
 
     Capital assets                                   95,208           39,297
     Investments                                       5,779                -
     Future income tax assets                         12,011            3,548
                                                   ---------------------------
 
                                                   $ 970,063        $ 337,227
                                                   ---------------------------
                                                   ---------------------------
 
     Current liabilities
     Accounts payable and accrued liabilities      $  45,892        $  11,033
     Taxes payable                                     3,842            1,815
     Deferred revenue                                 10,870            6,277
     Current portion of long-term debt                   198              185
                                                   ---------------------------
                                                      60,802           19,310
 
     Long-term debt                                    6,328            6,526
                                                   ---------------------------
                                                      67,130           25,836
                                                   ---------------------------
 
     Shareholders' equity
     Common shares                                   891,014          293,261
     Retained earnings                                11,919           18,130
                                                   ---------------------------
                                                     902,933          311,391
                                                   ---------------------------
 
 
                                                   $ 970,063        $ 337,227
                                                   ---------------------------
                                                   ---------------------------
 
 
 
 

SOURCE Research In Motion Limited
    WATERLOO, ON, April 11 /PRNewswire/ - Research In Motion Limited (RIM)
 (Nasdaq:   RIMM, TSE: RIM), a world leader in the mobile communications market,
 today reported fourth quarter and year end results for the three months and
 fiscal year ended February 28, 2001. (all figures in US $ and Canadian GAAP)
     Revenue for the fourth quarter of fiscal 2001 was $90.1 million. This
 marks a 46% increase over the prior quarter's revenue of $61.6 million and a
 249% increase over the $25.8 million generated in the fourth quarter of last
 year. BlackBerry(TM) subscriber growth continues to be a main revenue driver.
 As well, shipments of RIM(R) Wireless Handhelds(TM) to AOL contributed to the
 significant growth. BlackBerry accounted for approximately 48% of the
 Company's quarterly revenue. RIM Wireless Handhelds accounted for 45% and OEM
 radio modems accounted for 7%.
     Revenue increased to $221.3 million for the year ended February 28, 2001,
 representing an increase of 160% over the prior year. The increase for the
 year was primarily due to substantial growth in RIM Wireless Handheld
 shipments and BlackBerry subscribers. At the end of February there were
 approximately 164,000 BlackBerry subscribers in 7,800 companies.
     "The results reported today mark the completion of another outstanding
 year for RIM," said Jim Balsillie, Chairman and Co-CEO. "BlackBerry continues
 its growth as the leading wireless email platform for the North American
 enterprise market; and we are well positioned for our entry to new
 international markets with next-generation products. We have the resources
 necessary to execute our business plan and extend our competitive lead; and we
 expect to repeat our success during the upcoming year."
     Proforma net income for the quarter was $8.3 million or $0.11 per share
 ($0.10 diluted) compared with a net income of $1.5 million in the prior
 quarter and a net income of $3.2 million in the same quarter last year. For
 the year, proforma net income was $8.5 million or $0.12 per share ($0.11
 diluted) compared to net income of $10.5 million or $0.16 per share ($0.14
 diluted).
     Due to macroeconomic and financial market conditions, several of RIM's
 long-term investments have experienced significant non-temporary declines in
 their value. As a result, RIM has taken a one-time write-down of $14.75
 million. After accounting for this one-time write-down, the net loss for the
 quarter was $6.5 million ($0.08 per share). For the year, the net loss was
 $6.2 million ($0.08 per share).
     Gross research and development expenditures for the quarter were $9.1
 million, or 10% of revenue, compared to $6.7 million in the prior quarter, or
 11% of revenue, and $3.7 million, or 14% of revenue, in the fourth quarter
 last year. For the year, gross R&D expenditures were $25.7 million as compared
 to $12.2 million in the previous year, which represents an increase of 110%.
 R&D expenditures, net of government funding, for the quarter were $7.1
 million.
     Selling, marketing and administration expenses were $22.3 million, or 25%
 of revenue, for the quarter compared to $16.9 million, or 27% of revenue in
 the previous quarter and $5.1 million, or 20% of revenue, in the fourth
 quarter of last year. Planned investments in BlackBerry marketing, co-
 operative marketing programs, and staffing increases in sales, marketing, and
 customer support have contributed to the increase. For the year, selling,
 marketing and administration expenses were $65.2 million.
     Cash, cash equivalents and marketable securities were $721.9 million at
 February 28, 2001 as compared to $733.9 million in the previous quarter.
 
     Highlights of the fourth quarter:
 
     - RIM announced the appointment of Larry Conlee as Chief Operating
       Officer of Engineering and Manufacturing. Mr. Conlee joined RIM with
       over twenty years of international experience in corporate senior
       management at Motorola.
 
     - RIM announced its first major European supply agreement for BlackBerry.
       Under the terms of the agreement, RIM will supply BT Cellnet with
       BlackBerry Enterprise Edition for distribution in the UK. The supply
       agreement includes an initial commitment from BT Cellnet to order
       175,000 BlackBerry Wireless Handhelds with associated software and
       service.
 
     - BlackBerry Enterprise Edition for Lotus(R) Domino(TM) was introduced.
       The announcement approximately doubles the number of enterprise
       customers that now have the ability to stay wirelessly connected to
       their corporate email through BlackBerry. It also marks the first
       wireless handheld solution to offer tight integration with Lotus Notes
       and Domino together with end-to-end security and
       'Always On, Always Connected' operation.
 
     - RIM and IBM joined forces to provide BlackBerry to companies
       internationally. IBM Global Services is adding BlackBerry-based
       solutions to its portfolio of wireless solutions and establishing a
       team to focus on the integration of BlackBerry with enterprise email
       and intranet backend systems. IBM will provide business consulting and
       design services, as well as systems integration services.
 
     - Vaultus and RIM formed a strategic alliance to deliver wireless
       solutions that enable enterprise customers to reduce costs and gain
       greater sales efficiencies. Under the terms of the agreement, RIM will
       supply Vaultus a minimum of 50,000 BlackBerry Wireless Handhelds with
       associated software and services within the next two years.
 
     - AvantGo and RIM announced a strategic alliance focused on delivering
       wireless Web-based data and corporate applications to Fortune 1000
       customers. The companies will co-market existing and future products
       and services to enterprise customers and channel partners.
 
     - The BlackBerry Wireless Email Solution was added to several government
       purchasing contracts including the U.S. government GSA schedule.
 
     - Kasten Chase and RIM announced an agreement focused on providing secure
       wireless access to the U.S. Government's Defense Message System (DMS)
       via BlackBerry. The integrated RASP Data Security/BlackBerry solution
       will be designed to meet government standards for remote access to DMS.
       Kasten Chase will also market the solution to government end-user
       organizations and select BlackBerry government resellers.
 
     - E(x)TRADE launched its integrated brokerage and banking solution on the
       award-winning RIM Wireless Handhelds.
 
     - BlackBerry Enterprise Edition for Lotus Domino received the Gold Award
       from Lotus Advisor magazine. RIM Wireless Handhelds also received top
       awards from eWeek magazine and Smart Business magazine.
 
     Highlights subsequent to quarter end:
 
     - RIM announced another major breakthrough in wireless enterprise
       applications with the introduction of wireless calendar support for
       BlackBerry. With wireless calendar synchronization, BlackBerry
       Enterprise Server and BlackBerry Wireless Handhelds exchange calendar
       events wirelessly and securely. The user's online calendar and handheld
       calendar are automatically synchronized over-the-air without need of a
       cradle.
 
     - GoAmerica and RIM announced that Go.Web(TM) version 6.0 will be bundled
       with BlackBerry. Go.Web 6.0 includes enhanced features for mobile
       access to web and corporate information.
 
     - The BlackBerry Wireless Handheld was awarded the FIPS 140-1 Validation
       for its embedded encryption technology by the National Institute of
       Standards and Technology (NIST). FIPS 140-1 Validation is an important,
       and often mandatory, purchasing criteria for many organizations and
       will help facilitate continued adoption of BlackBerry in the government
       sector.
 
     - Wynd Communications and RIM demonstrated the WyndTell accessibility
       solution at the FOSE 2001 show. WyndTell with RIM Wireless Handhelds is
       designed to meet the needs of people who are deaf or hard of hearing by
       enabling users to communicate using two-way technology.
 
     - Yahoo! and Motient added RIM 857 Wireless Handheld support allowing
       wireless access to Yahoo! content and services via Motient's wireless
       data network.
 
     - Lucent Technologies and RIM announced an alliance focused on
       accelerating commercialization of third generation (3G) mobile
       solutions. Lucent and RIM will cooperate in interoperability testing
       for next-generation networks and coordinate trials with mobile network
       operators around the world.
 
     - RIM has signed memoranda of understanding with two additional European
       carriers to offer BlackBerry to their corporate customers. Esat
       Digifone (in Ireland) and Telfort Mobiel B.V. (in The Netherlands) are
       deploying a nation-wide GPRS network in its respective country that
       will support the BlackBerry wireless email solution.
 
     The replay of the Company's Q4 conference call can be accessed after 8
 p.m. (eastern time) April 11, 2001 until midnight (eastern time) April 18,
 2001. It can be accessed by calling (416) 626-4100 and entering reservation
 number 18450978. The conference call can also be accessed via our web site,
 live and archived, at http://www.rim.net/investors/index.shtml.
 
     About Research In Motion
     Research In Motion Limited is a leading designer, manufacturer and
 marketer of innovative wireless solutions for the mobile communications
 market. Through development and integration of hardware, software and
 services, RIM provides solutions for seamless access to time-sensitive
 information including email, messaging, Internet and intranet-based
 applications. RIM technology also enables a broad array of third party
 developers and manufacturers around the world to enhance their products and
 services with wireless connectivity. RIM's portfolio of award-winning products
 includes the RIM Wireless Handheld(TM) product line, the BlackBerry(TM)
 wireless email solution, embedded radio-modems and software development tools.
 Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in
 Canada, the United States and England. RIM is listed on the Nasdaq Stock
 Market (Nasdaq:   RIMM) and the Toronto Stock Exchange (TSE: RIM). For more
 information, visit www.rim.net. Investors may contact
 investor_relations@rim.net. Customers may contact info@rim.net.
 
     Research In Motion, RIM, the RIM logo, the RIM Wireless Handheld family
 of marks, BlackBerry and the BlackBerry logo are trademarks of Research In
 Motion Limited. Research In Motion, RIM and 'Always On, Always Connected' are
 registered with the U.S. Patent and Trademark Office. All other brands,
 products and company names mentioned herein may be trademarks or registered
 trademarks of their respective holders. Forward-looking statements in this
 news release are made pursuant to the "safe harbor" provisions of the United
 States Private Securities Litigation Reform Act of 1995. Investors are
 cautioned that such forward-looking statements involve risks and
 uncertainties, including, without limitation, risks relating to possible
 product defects and product liability, risks related to international sales
 and potential foreign currency exchange fluctuations, continued acceptance of
 RIM's products, increased levels of competition, technological changes,
 dependence on intellectual property rights and other risks detailed from time
 to time in RIM's periodic reports filed with the United States Securities and
 Exchange Commission and other regulatory authorities.
 
 
                PROFORMA CONSOLIDATED STATEMENTS OF OPERATIONS
     Excluding one-time write-down of long-term investments of $14.75 million
 
                                       For the three         For the year
                                        months ended            ended
     (in US $000's, except for
      proforma earnings per share)  February   February   February   February
                                    28, 2001   29, 2000   28, 2001   29, 2000
     -------------------------------------------------------------------------
                                       (unaudited)
 
     Revenue                        $ 90,079   $ 25,801   $221,327   $ 84,967
     Cost of sales                    55,593     15,534    133,852     48,574
                                    ------------------------------------------
     Gross margin                     34,486     10,267     87,475     36,393
                                    ------------------------------------------
 
     Research and development          7,141      1,587     18,281      7,738
     Selling, marketing and
      administration                  22,272      5,082     65,200     13,904
     Amortization                      3,212      1,706      8,645      4,683
                                    ------------------------------------------
                                      32,625      8,375     92,126     26,325
                                    ------------------------------------------
 
     Income (loss) from operations     1,861      1,892     (4,651)    10,068
 
     Investment income                11,238      2,995     22,921      5,968
                                    ------------------------------------------
 
     Income before provision for
      income taxes                    13,099      4,887     18,270     16,036
 
     Provision for income taxes        4,819      1,679      9,731      5,538
                                    ------------------------------------------
 
     Proforma net income            $  8,280   $  3,208   $  8,539   $ 10,498
                                    ------------------------------------------
                                    ------------------------------------------
 
     Proforma earnings per share,
      basic                         $   0.11   $   0.05   $   0.12   $   0.16
     Proforma earnings per share,
      diluted                       $   0.10   $   0.04   $   0.11   $   0.14
 
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Weighted average number of
      common shares outstanding (000's)
       Basic                          78,012     70,535     73,555     66,613
       Diluted                        84,044     77,225     79,586     72,996
     -------------------------------------------------------------------------
 
 
                      CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                       For the three         For the year
                                        months ended            ended
     (in US $000's, except for
      earnings (loss) per share)    February   February   February   February
                                    28, 2001   29, 2000   28, 2001   29, 2000
     -------------------------------------------------------------------------
                                       (unaudited)
 
     Revenue                        $ 90,079   $ 25,801   $221,327   $ 84,967
     Cost of sales                    55,593     15,534    133,852     48,574
                                    ------------------------------------------
     Gross margin                     34,486     10,267     87,475     36,393
                                    ------------------------------------------
 
     Research and development          7,141      1,587     18,281      7,738
     Selling, marketing and
      administration                  22,272      5,082     65,200     13,904
     Amortization                      3,212      1,706      8,645      4,683
                                    ------------------------------------------
                                      32,625      8,375     92,126     26,325
                                    ------------------------------------------
 
     Income (loss) from operations     1,861      1,892     (4,651)    10,068
 
     Investment income                11,238      2,995     22,921      5,968
                                    ------------------------------------------
 
     Income before write-down of
      long-term investments and
      provision for income taxes      13,099      4,887     18,270     16,036
 
     Write-down of long-term
      investments                     14,750          -     14,750          -
                                    ------------------------------------------
 
     Income (loss) before provision
      for income taxes                (1,651)     4,887      3,520     16,036
 
     Provision for income taxes        4,819      1,679      9,731      5,538
                                    ------------------------------------------
 
     Net income (loss)              $ (6,470)  $  3,208   $ (6,211)  $ 10,498
                                    ------------------------------------------
                                    ------------------------------------------
 
     Earnings (loss) per share,
      basic                         $  (0.08)  $   0.05   $  (0.08)  $   0.16
     Earnings (loss) per share,
      diluted                       $  (0.08)  $   0.04   $  (0.08)  $   0.14
 
     -------------------------------------------------------------------------
 
     Weighted average number
      of common shares
      outstanding (000's)
       Basic                          78,012     70,535     73,555     66,613
       Diluted                        84,044     77,225     79,586     72,996
     -------------------------------------------------------------------------
 
 
                             CONSOLIDATED BALANCE SHEETS
 
 
     As at                                      February 28,     February 29,
     (in US $000's)                                    2001             2000
     -------------------------------------------------------------------------
 
 
     Current assets
     Cash and cash equivalents                     $ 508,822        $     126
     Marketable securities                           213,105          218,116
     Trade receivables                                50,268           27,239
     Other receivables                                13,894            6,035
     Inventory                                        68,044           36,852
     Prepaid expenses                                  2,932            6,014
                                                   ---------------------------
                                                     857,065          294,382
 
     Capital assets                                   95,208           39,297
     Investments                                       5,779                -
     Future income tax assets                         12,011            3,548
                                                   ---------------------------
 
                                                   $ 970,063        $ 337,227
                                                   ---------------------------
                                                   ---------------------------
 
     Current liabilities
     Accounts payable and accrued liabilities      $  45,892        $  11,033
     Taxes payable                                     3,842            1,815
     Deferred revenue                                 10,870            6,277
     Current portion of long-term debt                   198              185
                                                   ---------------------------
                                                      60,802           19,310
 
     Long-term debt                                    6,328            6,526
                                                   ---------------------------
                                                      67,130           25,836
                                                   ---------------------------
 
     Shareholders' equity
     Common shares                                   891,014          293,261
     Retained earnings                                11,919           18,130
                                                   ---------------------------
                                                     902,933          311,391
                                                   ---------------------------
 
 
                                                   $ 970,063        $ 337,227
                                                   ---------------------------
                                                   ---------------------------
 
 
 
 SOURCE Research In Motion Limited