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Tag: research in motion

  • BlackBerry 10 Smartphone L-Series Leak Video Released

    More than a month out from RIM’s scheduled unveiling of its BlackBerry 10 lineup on January 30, the leaks are already coming. Today, a Vietnamese website known for its Apple leaks has released a video preview of an upcoming BlackBerry 10 device codenamed “London.”

    The smartphone, as shown in the video, has a rear-facing camera & flash, a microSD card slot, and a removable battery. It is also rumored to have a 4.2-inch screen, which the video appears to confirm.

    The surprising thing about the video may be that the device isn’t all that remarkable. Even the BlackBerry 10 software running on it heavily resembles the Android and iOS interfaces, with a few twists. This could be worrisome for RIM fans, as not even Microsoft’s highly unique Windows Phone 8 devices have been able to capture consumers’ imaginations and make much of a dent in the iOS/Android dominated smartphone market.

    Unless RIM has a surprise waiting for January, BlackBerry 10 devices could easily fall under the shadow of Apple and Samsung, as so many other manufacturers have. In fact, it might be hard for the company not to be upstaged by Samsung, who has teased a big announcement for CES earlier in January.

    (via BGR)

  • 3,000 RIM Layoffs Coming Next Week

    Today it was revealed that Research in Motion (RIM), the company behind the BlackBerry line of products, will be laying off 3,000 employees starting next week.

    Boy Genius Report (BGR) cites unnamed source in its report, which states the layoffs will take place over the coming weeks. BGR’s source stated that “people are terrified” and that some are even packing up their desks in anticipation of being let go. Workers have been told that any employees not working on BlackBerry 10 products are in danger of losing their jobs.

    RIM provided BGR with an official statement regarding the coming layoffs:

    RIM announced on June 28 that it will reduce its global workforce by approximately 5,000 over the course of the remaining fiscal year. These are difficult but necessary changes to help achieve operational cost savings of over $1 billion. RIM remains committed to ensuring that the reductions made do not impact key programs such as BlackBerry 10, customer support or BlackBerry service levels.

    The last round of layoffs at RIM took place back in June. Before that, over 2,000 employees were laid off just before the start of 2012.

    The layoffs at RIM are part of cost-cutting measures necessary due to a dismal financial outlook. The company has failed to compete successfully in the smartphone market with Apple, Google, and Samsung.

    Despite the continuous flow of bad financial news coming out of RIM for the past year, the company continues to remain adamant that it can survive. RIM is banking everything on its BlackBerry 10 products, and a product roadmap leaked in July shows the company has an ambitious product release schedule planned for 2013.

    RIM did receive some good news this week, though, when a judge presiding over a patent lawsuit involving RIM reversed a $150 million verdict against the company.

    (via BGR)

  • RIM CEO Denies That His Company Is In A Death Spiral

    To say that BlackBerry maker Research In Motion has been having a tough time lately would be to campaign for the Understatement of the Year Award. The fact is that by pretty much any standard you care to use, RIM is in deep trouble. Their market share is dropping steadily toward zero. During their quarterly earnings call last week they announced $518 million in losses, yet another delay for their supposedly life-saving BlackBerry 10 platform, and a plan to cut 5,000 of the company’s 16,500 jobs. This is not a company that’s in anything remotely resembling good shape.

    Yet CEO Thorsten Heins, who replaced former co-CEOs Jim Balsillie and Mike Lazaridis in January, insists that the company will navigate its troubled waters and come out successful on the other side. In fact, he told a local Toronto radio show, CBC’s Metro Morning, that “There’s nothing wrong with the company as it exists right now.” Now, before you think that Heins has taken leave of his senses, he went on to elaborate: “I’m not talking about the company as I, kind of, took it over six months ago. I’m talking about the company [in the] state it’s in right now.” In other words, while RIM might’ve been a mess when Heins came on the job in January, it’s in better shape now.

    That’s probably true enough. No doubt there were some significant internal issues in place at RIM that needed to be addressed, and Heins seems like the kind of person who could address those issues effectively. He went on to deny, though, that RIM is “in a death spiral.” That’s a much tougher sell. While Heins may have done a lot in the last six months to fix what was wrong with RIM, it isn’t at all clear that it will be enough. Sometimes patching the holes in the hull of a boat means the boat stays afloat. Sometimes, though, it’s already taken on too much water, and all you’re doing is delaying the inevitable. Heins clearly understands that RIM is in trouble – “challenged” is the word he uses. But he sees RIM as a company “in the middle of a transition,” and he remains “positive we will emerge successfully from that transition.”

    He may well be right about that. Provided that RIM can stay afloat until the BlackBerry 10 launch, and provided BlackBerry 10 performs well (very, very well), then RIM may yet navigate its troubled waters successfully. At this point, though, the odds of that look pretty long.

  • RIM’s Earnings Report Expected To Be Bleak

    RIM’s Earnings Report Expected To Be Bleak

    Research in Motion, makers of the once-might BlackBerry smartphone platform, has found itself in an increasingly bad situation over the last few years. Poor product performance and a string of bad business decisions – including failing to take the threat posed by the iPhone and Android seriously – have left RIM in dire straights. What’s more, it doesn’t look like anything will be improving any time soon. In fact, they may be about to get worse.

    RIM is scheduled to release their earnings report for the first quarter of the 2012 fiscal year this afternoon, and by all accounts there isn’t likely to be any good news. Last quarter RIM reported a significant drop in profits. Today, they’re expected to report significant operating losses for this quarter.

    While there has in the past been some hope that a successful launch of the BlackBerry 10 platform could turn the struggling company around, that’s looking less and less likely. In fact, there’s cause for speculation about whether RIM will ever get BlackBerry 10 off the ground at all. According to recent reports, the company is considering splitting up its handset and software businesses, selling off the handset business, and licensing software like BlackBerry Messenger.

    RIM’s stock price and market cap have been in steady decline for several months now. As of right now, RIM’s stock is trading at $9.11 per share with a market value of $4.82 billion. If this afternoon’s earnings report goes as poorly as expected, you can bet that that number will be going down even further.

  • RIM To Be Split Up And Sold Off In Pieces?

    BlackBerry maker Research In Motion may be looking to split itself up and sell off some, if not all, of the pieces. The company would divide into at least two divisions – handsets and software services (i.e., BlackBerry Messenger). The handset business would be the first on the block. RIM could then license the BlackBerry Messenger service to other companies, or sell it as well.

    This news comes The Sunday Times via The Verge. According to the Times, Facebook and Amazon are both possible buyers for RIM’s hardware division. They also say that this is one of the options drawn up by the financial advisors hired by the company to help it navigate through its current struggles. They expect RIM’s final plan to be unveiled sometime this summer.

    Despite once occupying a seemingly unassailable position at the top of the smartphone market, RIM’s situation has gotten consistently worse over the last few years. The company never managed to adequately respond to the threat Apple’s iPhone and Google’s Android platform posed to its business. A series of failed products and bad business moves caused RIM to hemorrhage market share to its rivals. In January co-founders and co-CEOs Mike Lazaridis and Jim Balsillie were replaced by Thorsten Heins. In March, though, their fourth quarter earnings report revealed little good news – revenues down 25% from the previous quarter and 7% for the year. Earlier this month the company’s stock hit a nearly ten-year low.

    All in all, these are not happy days for the once-mighty RIM. While there may be some hope left in the upcoming BlackBerry 10 release (assuming it actually happens), it’s looking more and more like RIM as we’ve known it won’t be around this time next year.

  • BlackBerry 10 Won’t Have a Physical Keyboard

    While RIM’s newest version of the BlackBerry won’t be ready until sometime later this year, they have confirmed that BlackBerry 10 won’t actually have a physical keyboard.

    While versions of the BlackBerry 10 operating systems will be available on devices with a physical keyboard at a later date, RIM spokesperson Rebecca Freiburger verified it is not part of the design right now.

    Actual details about the device itself are in short supply, there are many articles floating around by people who got a chance to sample the BlackBerry 10 software, and there is a consensus that it’s pretty nice.

    Take a look:

    There is a rumor floating around that RIM may release the first BlackBerry 10 devices sometime in October, but it has not been confirmed. It certainly seems like sooner would be better than later, at least for RIM.

    Just yesterday, we reported that RIM is downsizing departments by the dozen. The company is hoping to lean out their operations and reorganize in order to continue to compete in the consumer market.

    In April, after some substantial loses reported in their quarterly earnings, they experienced even more bad news as several top executives abandoned their positions at the company.

    Hopefully BlackBerry 10 will make it to the market before the company experiences any more major set back. Even then, it’s hard to say if RIM’s latest offering will be enough for them to stay competitive against the Androids and iOS’s of the world. We’ll keep you posted on any further BlackBerry 10 updates.

  • BlackBerry Manufacturer Celestica To Wind Down Production As RIM Reorganizes

    Celestica, one of the main manufacturing partners responsible for Research In Motion’s BlackBerry devices, has announced that they will wind down production of the devices by the end of the year. The changes are coming as the struggling RIM is in the midst of changing its focus and supply chain strategy.

    Toronto-based Celestica has been one of the primary makers of BlackBerry products for several years. The wind down process is expected to take 3-6 months. The company said that it will make more details available during its second quarter earnings call, which is scheduled for July 27th.

    RIM, once the undisputed king of the smartphone hill, has been struggling severely over the last few years. Back in March they released their earnings report for the fourth quarter of the 2011 fiscal year, and the news was pretty bad. Revenue was down 7% for the year, and 25% for the quarter. As part of that report they announced the departure of several executives (who were followed by more later).

    They also announced changes to their strategy for the BlackBerry line. Moving forward, they plan to focus more exclusively business customers rather than the average consumer. This led many to conclude that they were abandoning the consumer market altogether. RIM denied this, insisting that they were actually focusing on a very particular segment of the consumer market – business people who supply their own devices for work.

    At any rate, it appears that this refocusing of RIM’s attention with the BlackBerry will mean fewer devices being made. It also means that businesses that depend on RIM for their revenues should start considering other sources of income, just in case.

  • RIM’s Former CEOs Get $12 Million Payout For Leaving

    Back in January Research In Motion – the struggling makers of the BlackBerry smartphone platform – appointed Thorsten Heins as the company’s new president and CEO. Heins replaced former co-CEOs Jim Balsillie and Mike Lazaridis. As part of that succession plan – reportedly proposed by Balsillie and Lazaridis themselves – Balsillie retained a seat on RIM’s board while Lazaridis became the vice-chair.

    The move wasn’t enough to save the struggling company, though, and in March they released a dismal quarterly earnings report, and announced the departure of several top executives. Among them was Balsillie, who surrendered his place on RIM’s board of directors. Even so, RIM’s problems have continued, with the company’s stock hitting an almost ten-year low earlier this month.

    Now it seems that the struggles of the company they founded were not sufficient incentive for Balsillie and Lazaridis to step down from their posts as co-CEO. According to a form 6-K document filed with the SEC earlier this week, the two were given a combined total of nearly $12 million as compensation for their departure.

    According to the document, Lazaridis will continue to serve as vice-chair of RIM’s board, while he and Balsillie will receive a variety of compensations for their work as RIM’s co-founders and co-CEOs. The total value of Balsillie’s severance comes to $7,929,229, while Lazaridis’s comes to $3,956,056, for a total of $11,885,355. The document also provides RIM’s reasoning for so handsomely rewarding its co-founders:

    Messrs. Lazaridis and Balsillie revolutionized the worldwide wireless industry with the introduction of the BlackBerry and forever changed how the world communicates. Under their leadership, the Company successfully navigated many challenges and quickly scaled to become a global company and industry leader with sales in over 175 countries and more than 17,000 employees worldwide. Over the last decade, the Company experienced tremendous growth, with annual revenues increasing from $294 million to just under $20 billion. Messrs. Lazaridis and Balsillie have also received many awards outside of the Company in recognition of their success and contributions to the Company, the broader mobile industry and Canadian business. These factors were taken into consideration by the Board in entering into the transition agreements. In addition, the transition agreements were entered into in recognition of Messrs. Lazaridis’ and Balsillie’s years of dedicated service and leadership as founders, Co-CEOs and Co-Chairs of the Company.

    Interestingly, the transition agreements do not appear to have taken into account their role in the company’s current (dire) situation. While it’s absolutely true that RIM “forever changed how the world communicates,” it’s also true that RIM’s response to the rise of the consumer smartphone – i.e., the iPhone and Android – was consistently poor. The iPhone’s initial success and popularity was met with a mixture of scorn and smugness born of absolute conviction that the BlackBerry’s position at the top of the market was unassailable. Once RIM recognized its competition as a credible threat, its responses were a string of too-little-too-late devices that simply failed to measure up to what the iOS and Android platforms had to offer. While Balsillie and Lazaridis are absolutely deserving of recognition for how high RIM had climbed by 2007, they deserve just as much blame for how far RIM has fallen since then.

  • RIM Pulls Plug On 16GB BlackBerry PlayBook

    BlackBerry maker Research In Motion appears to have discontinued the 16GB version of their PlayBook tablet, according to recent reports. Though nothing is certain yet, it appears that recent price cuts on the PlayBook have drastically reduced the 16GB PlayBook’s profit margins, to the point that RIM is barely making any profits at all from the sale of the device. Given RIM’s current financial woes, they can hardly afford to sell a product on which they turn almost no profit.

    According to Ubergizmo, RIM’s response to a customer email hinted that the PlayBook would be discontinued, though currently remaining stock would continue to be sold off. RIM has confirmed the cancellation earlier today. Here’s their statement:

    RIM will no longer be making the 16 GB model of the BlackBerry PlayBook tablet. The 16 GB PlayBook will continue to be available for distributors and retailers while quantities last. We continue to remain committed to the tablet space and the 32 GB and 64 GB models of the BlackBerry PlayBook continue to be available from our distributors and retailers around the world.

    We have limited quantities remaining of the 16GB version of the BlackBerry PlayBook, however the 32GB and 64GB are still available and offer great value to our customers.

    The BlackBerry PlayBook hit stores in April 2011. With the iPhone and Android bleeding RIM dry of market share and the iPad having proven to be a mega-hit, RIM needed its own tablet. Unfortunately, the PlayBook’s reception was lukewarm, to put it kindly. Critics savaged the device for its lack of certain features that are regarded as must-haves for any tablet, e.g., standalone email and calendar apps. While the update to PlayBook OS 2.0 earlier this year alleviated some of those problems, PlayBook sales have still proven less than impressive.

    RIM, meanwhile, has been having severe troubles of late. The company’s stock recently hit a near-decade low when it fell below $10 per share.

  • RIM Facing Patent Lawsuit As Stock Woes Continue

    Research In Motion, makers of the once-ubiquitous BlackBerry smartphone, can’t seem to catch a break lately. They continue to hemorrhage market share to iOS and Android, and their stock recently tumbled below the $10 mark for the first time in almost ten years, bringing the company’s market cap to $5.09 billion, just one sixteenth of their value in 2007.

    Now, to add insult to injury, they appear to be facing a patent infringement lawsuit. Mobile Telecommunications Technologies (MTEL) has filed suit against RIM in U.S. District Court in Texas, claiming that RIM has infringed on two of its patents. The patents in question (see here and here) cover mobile telephone call back system involving a mobile phone and a pager, and a system for delivering messages between a system network and mobile units. In addition to being broad, both patents are quite old. They were issued in September and December of 1996 (though one was filed in September of 1994). The complaint, embedded below, accuses RIM of violating MTEL’s patents with the BlackBerry Enterprise Server and BlackBerry Infrastructure.

    Mobile Telecommunications Technologies v. Research in Motion

    It probably goes without saying at this point, but MTEL is pretty clearly a patent troll. What’s interesting about this case, though, is the timing. Any way you slice it, RIM is on the ropes. They’re limping along as best they can, waiting for the BlackBerry 10 launch later this year. If BlackBerry 10 fails to perform, it’s a fair bet that that will be the end of RIM as we know it. So MTEL appears to be striking while the iron is hot, as it were: if they have any chance of squeezing money out of RIM, now is probably their best opportunity. Even so, it’s a pretty slimy move. Patent-trolling a company in RIM’s current state is the epitome of kicking someone when they’re down.

  • RIM’s $10 Stock: Lowest Price in Nearly a Decade

    With the release of the new BlackBerry 10 looming in the distance, Research in Motion (RIM) is struggling to keep its head above water. Shares of the company are presently trading at about $9.70, which is almost the lowest price in a decade. RIM’s market cap is at $5.09 billion or about fifteen times less than it was valued at in 2007.

    This news comes just as RIM’s CEO,Thorsten Heins released a letter letting his shareholders know they would be reporting a loss on their first quarter earnings report. Stiff competition and poor sales have resulted in the company sustaining losses in many areas, and the impact will reach far beyond just this quarter.

    RIM president and CEO, Thorsten Heins comments on the challenges which lie ahead for the company:

    “RIM is going through a significant transformation as we move towards the BlackBerry 10 launch, and our financial performance will continue to be challenging for the next few quarters. The on-going competitive environment is impacting our business in the form of lower volumes and highly competitive pricing dynamics in the marketplace, and we expect our Q1 results to reflect this, and likely result in an operating loss for the quarter.”

    “We are continuing to be aggressive as we compete for our customers’ business – both enterprise and consumer – around the world, and our teams are working hard to provide cost-competitive, feature-rich solutions to our global customer base. On the positive side, we expect to further increase our cash position in Q1 from the approximately $2.1 billion we had at the end of fiscal 2012.”

    “Although we are facing challenges, we remain excited about BlackBerry 10 and believe that this platform coupled with the results of the strategic review will create long-term value for our stakeholders. We will provide another more detailed business update when we report our first quarter results in June.”

    Hopefully BlackBerry 10 will be enough to save RIM’s business, but it certainly doesn’t look good as things stand right now. Industry analyst, Brian Blair of Wedge Partners commented on RIM recently and believes the Government and enterprise movement away from the BlackBerry platform to competitors like iOS and Android will prove to significant for RIM to overcome.

    Brian Blair, analyst for Wedge Partners, comments on the impending decline of RIM’s business:

    “Our view is that the next four quarters show a steep decline in quarterly units and a gradual decline in overall subscribers, which at around 73 million, is the last of the growing, positive metrics for RIM,”

    “We continue to see a mass exodus away from the BlackBerry platform in the consumer segment, in the enterprise, and in government, and there is nothing that will stave off this decline in 2012.”

  • RIM Appoints New Operating and Marketing Leadership

    RIM Appoints New Operating and Marketing Leadership

    Research In Motion (RIM) announced today that it has hired a new Chief Operating Officer (COO) and Chief Marketing Officer (CMO). Kristian Tear will take over former COO Jim Roan’s position and Frank Boulben has been named the new CMO. This news comes just a month after a poor earnings report was announced and executives began fleeing the company.

    “Kristian and Frank bring extensive knowledge of the rapidly changing wireless global market and will help RIM as we sharpen our focus on delivering long-term value to our stakeholders,” said RIM President and Chief Executive Officer Thorsten Heins. “Most importantly, both Kristian and Frank possess a keen understanding of the emerging trends in mobile communications and computing.”

    Tear, pictured above, is leaving his position as executive vice president for Sony Mobile Communications to accept the new COO role at RIM. He will oversee operational functions for RIM handhelds and services, including research and development, products, global sales, manufacturing, and supply chain.

    “RIM is an important player in the mobile industry and I am excited to be a part of its future,” said Tear. “I look forward to working with the talented RIM employees and harnessing their ingenuity and creativity for the benefit of more than 77 million BlackBerry users around the world. I also look forward to helping RIM attract a brand new generation of BlackBerry users.”

    Boulben is a former executive vice president of strategy, marketing and sales for LightSquared. Boulben will oversee marketing efforts worldwide. RIM’s marketing efforts could certainly use a clear vision, judging from the recent “Wake Up” debacle in Australia.

    “RIM is a pioneer in the mobile world and the BlackBerry brand is a global icon,” said Boulben. “We all know how fast the mobile arena evolves and with the BlackBerry 10 platform, I believe RIM will once again change the way individuals and enterprises engage with each other and the world around them. I could not resist the opportunity to be part of that transformation.”

    Boulben sounds confident, but it is clear that RIM is in need of a shake-up if it hopes to stop hemorrhaging users and compete with Apple and Samsung in the smartphone market. RIM has been on a downward spiral for a while, and its upcoming Blackberry 10 smartphone, though met with positive reviews, hasn’t turned around industry expectations for the company.

    What do you think? Will these new appointments save RIM from performing large cutbacks and settling into a new defensive position as a software licenser and patent troll? Leave a comment below and let us know.

  • BlackBerry 10 Camera Lets Users Turn Back Time

    Instead of being excited for the most advanced BlackBerry phone ever revealed, the tech press greeted the BlackBerry 10 with a collective “meh,” and proceeded to speculate as to whether the phone was enough to save the company from death or becoming a full-time patent troll. But among the many announcements in the BlackBerry World 2012 keynote presentation was the demonstration of a remarkable camera feature RIM has been developing for its latest smartphone.

    The feature, demonstrated in the video below, allows users to detect where faces in photos are. Users can then select each face and skip back or forward in time, frame-by-frame, to get the perfect expression for the picture. Each face can be individually adjusted. That this type of “magic moment” software, as RIM has referred to it, hasn’t been seen before is interesting, as the cameras on phones have been able to record video for years now.

    I can’t help but think of it as cheating, though. Photographs are meant to capture a moment in time, and this warps that concept. I know that software such as Adobe’s Photoshop has been able to do similar things for some time, but being able to easily combine several seconds worth of time into one “best” image, and do it without video editing software, is a big change for the average smartphone user. I suppose this is the future of picture taking, though I think we may need a new name for it other than photography. Any suggestions? Leave a comment below and let me know.

  • First BlackBerry 10 Phone Coming In October?

    The first of Research In Motion’s long-awaited BlackBerry 10 smartphones may be coming in October, according to a recent report. The latest update to the BlackBerry platform was originally slated to launch late last year, but has seen repeated delays.

    Citing inside sources, N4BB.com is reporting that RIM will announce the first BlackBerry 10 device in the middle of August, and that it will release sometime in the first half of October. Interestingly, the first device in the BlackBerry 10 lineup is said to forego a physical QWERTY keyboard in favor of a touchscreen-only interface. Those wanting a more traditional QWERTY BlackBerry will reportedly have to wait until the first quarter of 2013. Even then, though, the keyboard is likely to be of the slide-out variety, rather than the more familiar half-keyboard, half-screen BlackBerry we’re used to.

    The report also says that RIM will be making a major marketing push for the BlackBerry 10 platform. That should come as no surprise. RIM has struggled significantly in the last few years, partly due to delays in the BlackBerry 10 OS, and partly due to inability to keep up with Apple’s iPhone and the Android platform. BlackBerry has suffered severe losses to both platforms – especially iOS.The BlackBerry 10 OS – which will also be coming to the PlayBook tablet – could be RIM’s lifeline if it turns out to be successful.

    What do you think? Should RIM lead off with a touchscreen-only BlackBerry? Do you think BlackBerry 10 will be enough to save RIM? Let us know in the comments.

  • RIM May Hire A Financial Adviser To Help Solve Its Problems

    Research In Motion, the long-suffering maker of the BlackBerry smartphone platform, is reportedly looking into hiring a financial adviser to help it navigate out of its current troubles. Late last month the company released its fourth quarter earnings report, and the news was pretty grim. Revenue for for the quarter was down 19% from the third quarter, and 25% from the same quarter last year. At the same time, device sales were down 21% from the third quarter.

    As part of the earnings report, RIM announced that several executives were leaving the company, to be followed by two more about a week later. They also announced that they were refocusing their marketing efforts, returning to an emphasis on business customers. This led many to conclude that RIM was abandoning the consumer market altogether, though RIM denied it.

    During RIM’s earnings call, CEO Thorsten Heins mentioned the possibility of licensing BlackBerry software to other handset makers, licensing RIM’s patent catalog, or even selling the company altogether. Today, Bloomberg is reporting that RIM is preparing to hire a financial adviser to help it decide. Citing “four people with knowledge of the matter,” Bloomberg says that while a strategic outside investment or sale of the company are unlikely, the company will probably pursue licensing options. RIM could chose to license the BlackBerry software platform to other device manufacturers like Samsung or HTC, both of which would no doubt be happy for another alternative to Android for their smartphone lines. The company could also choose to license its patent portfolio to a company like Microsoft, which is currently struggling to make inroads in the smartphone market.

    Whatever course RIM chooses – and a combination of licensing options seems most likely – it’s a pretty safe bet that the company is headed for some major changes. Whether it survives, or what it looks like when the dust settles, remains to be seen.

  • RIM Losing More Execs Following Poor Earnings Report

    Late last month Research In Motion, makers of BlackBerry smartphones and tablets, announced the departure of several of their top executives following a dismal earnings report. Former co-CEO Jim Balsillie left his position on RIM’s board, while CTO David Yach retired and COO Jim Roan “has decided to pursue other interests.”

    Now it seems that Balsillie, Yach, and Rowan were not the only heads to roll in RIM’s shakeup. The Wall Street Journal is reporting that several other top executives have departed as well. Citing “people close to the firm,” the Journal says that Vice President for BlackBerry Messenger Alistair Mitchell and Senior Vice President for the BlackBerry platform Alan Brenner were leaving the company as well.

    The news in RIM’s earning report for the fourth quarter of fiscal year 2011 was, to put it mildly, pretty bad. RIM’s revenue for the year was down 7%, while its revenue for the fourth quarter was down 19% from the previous quarter, and 25% from the fourth quarter of last year. What’s more, they shipped 11.1 million BlackBerry phones in the fourth quarter, down 21% from the third quarter.

    In addition to the departure of the executives, RIM announced some other changes they would be making. Most notably, they stated their intention to refocus their business strategy on the enterprise market and those sections of the consumer market most closely associated with it. While this was believed by many to signal RIM’s exit from the consumer market, they later released a statement saying they were not doing so.

    It’s hard to deny at this point that RIM is in pretty dire straights. Their last two major products – BlackBerry 7 and the BlackBerry PlayBook – performed well below expectations. To say that the company’s hopes rest entirely on the upcoming BlackBerry 10, set to release later this year, may be an overstatement, but not much of one.

    What do you think? Are the shakeups at RIM too little, too late, or can they turn things around? Let us know in the comments.

  • RIM Insists They Are Not Abandoning Consumer Market

    RIM has issued a statement insisting it is not exiting the consumer smartphone market, despite reports from numerous media outlets. When RIM’s earnings report for the fourth quarter of fiscal year 2011 was published yesterday, it painted a bleak picture of the once-mighty smartphone maker. Revenues for the fourth quarter were down 19% from where they were in the third quarter, and 25% from where they were this time last year. Overall revenue for fiscal year 2011 was down by 7%, while smartphone sales were down 21%.

    Along with the earnings report, RIM made several statements about the company’s strategy moving forward. Part of that forward movement involved the departure of three of RIM’s top executives, including co-founder and former co-CEO Jim Balsillie. The company also announced a refocusing of its marketing strategy. During the earnings call, new CEO Thorsten Heins said that RIM plans “to refocus on the enterprise business and capitalize on our leading position in this segment.”

    This statement was widely interpreted to mean that RIM was more or less abandoning the consumer market, leaving it to competitors iOS and Android, which have proven vastly more popular among consumers than BlackBerry. Now RIM is denying those reports. In a blog post this afternoon the company insisted that it “remains committed to the consumer market.” The company does not, in fact, plan to abandon the consumer market completely, rather the company will “focus its talent base and homegrown software and services on specific areas of the consumer market where BlackBerry excels.”

    Citing the increasing use of personal mobile devices for business, the company says that they will focus on building “a smartphone that consumers will be excited to use both personally and professionally that will also satisfy their employer’s needs for security and data management.”

    So there you have it. RIM is not abandoning the consumer market completely, they’re just focusing on the areas of the consumer market where they aren’t currently being trounced by iOS and Android. Specifically, they’re focusing on the BYOD (“Bring Your Own Device”) market – people who need mobile devices for work, and whose employers allow them to choose their own rather than issuing them. More to the point, they’re targeting that fuzzy edge of the consumer market where it rubs against the business market. To be fair, that’s where BlackBerry has fared best against iOS and Android, and it does make sense for BlackBerry to continue to play to its strengths. Even so, it’s such a narrow segment of the market and so closely related to the business market that it’s a bit difficult to see the distinction. Maybe they’re not technically abandoning the consumer market, in the strictest sense, but they’re abandoning most of it, and from most angles, it’s hard to tell the difference.

    What do you think? Do you buy RIM’s statement that they’re not abandoning the consumer market? Let us know in the comments.

  • RIM Will Abandon The Consumer Market, Focus On Enterprise

    As we told you yesterday, BlackBerry maker Research In Motion released its earnings report for the fourth quarter of the 2011 fiscal year, and the news was not good. The company, which stood unchallenged at the top of the smartphone market just five years ago, reported a 19% drop in revenue for the quarter, a 7% drop for the year, and a 25% drop from the fourth quarter of last year. Meanwhile, they shipped 11.1 million BlackBerry smartphones in the fourth quarter, a 21% drop from the third quarter.

    With news that bad, you can expect RIM to start making some major changes in the near future if they want to survive. Accordingly, RIM announced several measures designed to keep the company afloat. First, co-founder and former co-CEO Jim Balsillie will step down from his position on the company’s board of directors. Balsillie stepped down as co-CEO (along with Mike Lazaridis) in late January with the appointment of Thorsten Heins as President and CEO. Current CTO for Software David Yach and current COO for Global Operations Jim Rowan will also be leaving the company. Yach is said to be retiring, while Rowan “has decided to pursue other interests.”

    RIM also announced a change in their device strategy. RIM’s efforts to produce BlackBerry smartphones that appeal to consumers in the same way as iOS and Android devices have been largely unsuccessful. Acknowledging that, RIM is planning to refocus its efforts toward making phones that are suited to the enterprise market, and that appeal to customers who will purchase the phones for work. This move represents a return to RIM’s roots, and an increased focus on the one market where RIM still enjoys some advantage (albeit small and decreasing) over iOS and Android.

    Before Apple introduced the first iPhone in 2007 the smartphone market was primarily business-oriented. After all, consumers didn’t need or even want to send emails from their phones, right? In those days, the BlackBerry was the undisputed master of the business smartphone market. With the iPhone, though, Apple proved that there was a market for consumer smartphones after all, and Google followed suit with its Android operating system. In fact, early versions of Android smartphones looked very much like BlackBerrys until the iPhone proved the appeal of the touchscreen. Since then, RIM’s road has been mostly downhill.

    The increasing popularity of iOS and Android phones, combined with some unfortunate business moves by RIM, including a few products that basically flopped, have left the company on decidedly shaky ground. The company’s market share has plummeted as iOS and Android continue to grow. In fact, recent data showed that more iPhones than BlackBerrys were sold in RIM’s native Canada, where BlackBerry has long held a special place in the hearts of consumers. To make matters worse, consumers aren’t the only ones who are turning to iPhone and Android over BlackBerry. Corporations and government agencies – including the ATF, the NOAA, and Halliburton – are making the switch away from BlackBerry as their mobile platform of choice.

    While a refocus on the enterprise market that made RIM successful is certainly a good move, and the forthcoming BlackBerry 10 will no doubt give the company a boost, it remains to be seen whether such measures can save the struggling company.

    What do you think? Can RIM come back from the edge? Is refocusing on enterprise a good idea? Can BlackBerry 10 save them? Let us know in the comments.

  • RIM Earnings Released: Q4 Revenue Down 25%, Full-Year Down 7%

    BlackBerry maker Research In Motion (RIM) just released its fourth quarter and year-end of fiscal 2012 earnings.

    For Q4, the company reported a 19% drop in revenue from $5.2 billion in the third quarter to $4.2 billion. That’s also down 25% from $5.6 billion in the year-ago quarter. The company shipped 11.1 million BlackBerry smartphones and over 500,000 BlackBerry PlayBook tablets in the quarter.

    For the year, revenue was $18.4 billion, down 7% from $19.9 billion the previous year.

    “I have assessed many aspects of RIM’s business during my first 10 weeks as CEO,” says CEO Thorsten Heins, who assumed the CEO position in January. “I have confirmed that the Company has substantial strengths that can be further leveraged to improve our financial performance, including RIM’s global network infrastructure, a strong enterprise offering and a large and growing base of more than 77 million subscribers.”

    “I’m very excited about the prospects for the BlackBerry 10 platform, which is on track for the latter part of calendar 2012,” he added. “Notwithstanding these strengths and opportunities, the business challenges we face over the next several quarters are significant and I am taking the necessary steps to address them. In addition to delivering the BlackBerry 10 platform and refocusing resources on RIM’s key opportunities, such as BlackBerry Mobile Fusion and new integrated service offerings, we will also drive greater operational performance through a variety of initiatives including increased management accountability and process discipline. In parallel, we are undertaking a comprehensive review of strategic opportunities including partnerships and joint ventures, licensing, and other ways to leverage RIM’s assets and maximize value for our stakeholders.”

    Here’s the release in its entirety:

    WATERLOO, ONTARIO–(Marketwire -03/29/12)- Research In Motion Limited (RIM) (NASDAQ: RIMM – News)(TSX: RIM.TO –News), a world leader in the mobile communications market, today reported fourth quarter results for the three months and fiscal year ended March 3, 2012 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

    Highlights:

     

--  $2.1 billion in cash, cash equivalents, short-term and long-term
    investments at the end of the quarter, which increased by approximately
    $610 million in the quarter
--  Cash flow from operations of approximately $1.1 billion, up from
    approximately $900 million in Q3
--  Revenue of $4.2 billion, down 19% from the third quarter
--  GAAP net loss in Q4 of $125 million or $0.24 per share diluted; adjusted
    net income of $418 million or $0.80 per share diluted
--  BlackBerry smartphone shipments of 11.1 million in Q4, down 21% from Q3
--  RIM to discontinue providing specific quantitative guidance
--  RIM provides update on organizational changes

    Q4 Results:

    Revenue for the fourth quarter of fiscal 2012 was $4.2 billion, down 19% from $5.2 billion in the previous quarter and down 25% from $5.6 billion in the same quarter of fiscal 2011. The revenue breakdown for the quarter was approximately 68% for hardware, 27% for service and 5% for software and other revenue. During the quarter, RIM shipped approximately 11.1 million BlackBerry smartphones and over 500,000 BlackBerry PlayBook tablets.

    “I have assessed many aspects of RIM’s business during my first 10 weeks as CEO. I have confirmed that the Company has substantial strengths that can be further leveraged to improve our financial performance, including RIM’s global network infrastructure, a strong enterprise offering and a large and growing base of more than 77 million subscribers. I’m very excited about the prospects for the BlackBerry 10 platform, which is on track for the latter part of calendar 2012. Notwithstanding these strengths and opportunities, the business challenges we face over the next several quarters are significant and I am taking the necessary steps to address them,” said Thorsten Heins, President & CEO of Research In Motion. “In addition to delivering the BlackBerry 10 platform and refocusing resources on RIM’s key opportunities, such as BlackBerry Mobile Fusion and new integrated service offerings, we will also drive greater operational performance through a variety of initiatives including increased management accountability and process discipline. In parallel, we are undertaking a comprehensive review of strategic opportunities including partnerships and joint ventures, licensing, and other ways to leverage RIM’s assets and maximize value for our stakeholders.”

    The Company’s GAAP net loss for the fourth quarter of fiscal 2012 was $125 million, or $0.24 per share diluted, compared with GAAP net income of $265 million, or $0.51 per share diluted, in the prior quarter and GAAP net income of $934 million, or $1.78 per share diluted, in the same quarter of fiscal 2011. Adjusted net income for the fourth quarter was $418 million, or $0.80 per share diluted. Adjusted net income and adjusted diluted earnings per share for the fourth quarter exclude the impact of pre-tax charges of $355 million which are predominantly non-cash ($346 million after tax) for the impairment of goodwill and $267 million ($197 million after-tax) for an inventory provision taken primarily on certain BlackBerry7 products. These charges and their related impacts on GAAP net income and diluted earnings per share are summarized in the tables below.

    Reconciliation of GAAP gross margin, gross margin percentage, net income and diluted EPS to adjusted gross margin, gross margin percentage, net income and diluted EPS:

    (United States dollars, in millions except per share data)

     

                              For the quarter ended March 3, 2012
                   ---------------------------------------------------------
                                    Gross Margin
                   Gross Margin(1)   %(1)(before   Net Income or    Diluted
                    (before taxes)        taxes)          (Loss)        EPS
                   ---------------------------------------------------------
As reported         $        1,401          33.4%  $        (125)     (0.24)

Adjustments:
Impairment of
 Goodwill(2)                     -             -             346       0.66
Inventory
 Provision(3)                  267           6.4%            197       0.38

                   ---------------------------------------------------------
Adjusted            $        1,668          39.8%  $         418 $     0.80
                   ---------------------------------------------------------
                   ---------------------------------------------------------
Note: Adjusted gross margin, adjusted net income and adjusted diluted
earnings per share do not have a standardized meaning prescribed by GAAP and
thus are not comparable to similarly titled measures presented by other
issuers. The Company believes that the presentation of adjusted gross
margin, adjusted gross margin percentage, adjusted net income and adjusted
diluted earnings per share enables the Company and its shareholders to
better assess RIM's operating results relative to its operating results in
prior periods and improves the comparability of the information presented.
Investors should consider these non-GAAP measures in the context of RIM's
GAAP results.

(1) During the fourth quarter of fiscal 2012, the Company reported GAAP
gross margin of $1.4 billion or 33.4% of revenue. Excluding the impact of
charges primarily related to inventory valuation of certain BlackBerry 7
products, the adjusted gross margin was $1.7 billion, or 39.8% of revenue.

(2) Subsequent to the fourth quarter of fiscal 2012, the Company performed a
goodwill impairment test and based on the results of that test, the Company
recorded a non-cash pre-tax goodwill impairment charge of $355 million, $346
million after tax.

(3) During the fourth quarter of fiscal 2012, the Company recorded a pre-tax
provision of approximately $267 million, $197 million after tax, which was
mostly non-cash, primarily related to its inventory valuation of certain
BlackBerry 7 products.

    The total of cash, cash equivalents, short-term and long-term investments was $2.1 billion as of March 3, 2012, compared to $1.5 billion at the end of the previous quarter, an increase of approximately $610 million from the prior quarter. Cash flow from operations in Q4 was approximately $1.1 billion, up from $900 million in Q3. Uses of cash included intangible asset additions of approximately $260 million and capital expenditures of approximately $190 million.

    Fiscal 2012 Results

    Revenue for the fiscal year ended March 3, 2012 was $18.4 billion, down 7% from $19.9 billion in fiscal 2011. The Company’s GAAP net income for fiscal 2012 was $1.2 billion, or $2.22 per share diluted, compared with GAAP net income of $3.4 billion, or $6.34 per share diluted in fiscal 2011. Adjusted net income for fiscal 2012 was $2.2 billion, or $4.20 per share diluted. Adjusted net income and adjusted diluted earnings per share for fiscal 2012 exclude the adjustments described above as well as the impact of pre-tax charges of $54 million ($40 million after tax) to revenue related to the service interruption experienced in the third quarter, $485 million ($356 million after tax) for the PlayBook inventory provision taken in the third quarter and $125 million ($96 million after tax) for the Company’s cost optimization program that was implemented in the second quarter of fiscal 2012. These charges and their related impacts on GAAP net income and diluted earnings per share are summarized in the tables below.

    Reconciliation of GAAP revenue, gross margin, gross margin percentage, net income and diluted EPS to adjusted revenue, gross margin, gross margin percentage, net income, and diluted EPS:

    (United States dollars, in millions except per share data)

     

                              For the year ended March 3, 2012
                ------------------------------------------------------------
                                 Gross       Gross
                    Revenue  Margin(1)  Margin%(1)
                    (before    (before     (before
                     taxes)     taxes)      taxes)   Net Income  Diluted EPS
                ------------------------------------------------------------
As reported     $    18,435 $    6,579        35.7% $     1,164 $       2.22

Adjustments:
PlayBook
 Inventory
 Provision(2)             -        485         2.6%         356         0.68
Cost
 Optimization
 Program(3)               -         14           -           96         0.18
Q3 Service
 Interruption(4)         54         54         0.3%          40         0.08
Impairment of
 Goodwill(5)              -          -           -          346         0.66
Inventory
 Provision(6)            19        267         1.4%         197         0.38

                ------------------------------------------------------------
Adjusted        $    18,508 $    7,399        40.0% $     2,199 $       4.20
                ------------------------------------------------------------
                ------------------------------------------------------------
Note: Adjusted revenue, adjusted gross margin, adjusted gross margin
percentage, adjusted net income and adjusted diluted earnings per share do
not have a standardized meaning prescribed by GAAP and thus are not
comparable to similarly titled measures presented by other issuers. The
Company believes that the presentation of adjusted revenue, adjusted gross
margin, adjusted gross margin percentage, adjusted net income and adjusted
diluted earnings per share enables the Company and its shareholders to
better assess RIM's operating results relative to its operating results in
prior periods and improves the comparability of the information presented.
Investors should consider these non-GAAP measures in the context of RIM's
GAAP results.

(1) During fiscal 2012, the Company reported GAAP gross margin of $6.6
billion, or 35.7% of revenue. Excluding the impact of charges related to the
PlayBook Inventory Provision, the Cost Optimization Program, the Q3 Service
Interruption and the Inventory Provision, the adjusted gross margin was $7.4
billion, or 40.0% of revenue.

(2) During fiscal 2012, the Company recorded a pre-tax provision of
approximately $485 million, $356 million after tax, related to its inventory
valuation of BlackBerry PlayBook tablets. The charge was predominantly non-
cash.

(3) Cost of sales, research and development, and selling, marketing and
administration expenses in fiscal 2012 included approximately $11 million,
$18 million, and $67 million, respectively, in after-tax charges related to
the cost optimization program to streamline operations across the Company.

(4) During fiscal 2012, the Company experienced a service interruption which
resulted in the loss of service revenue and the payment of service credits
totally approximately $54 million, approximately $40 million after tax,
related to the interruption in the availability of the Company's network.

(5) Subsequent to fiscal 2012, the Company performed a goodwill impairment
test and based on the results of that test, the Company recorded a non-cash
pre-tax goodwill impairment charge of approximately $355 million,
approximately $346 after tax.

(6) In the fourth quarter of fiscal 2012, the Company recorded a pre-tax
provision of approximately $267 million, $197 million after tax, which was
mostly non-cash, primarily related to its inventory valuation of certain
BlackBerry 7 products.

    Change to Guidance Practices and Outlook:

    The company expects continued pressure on revenue and earnings throughout fiscal 2013. Due to a desire to focus on long term value creation and the current business environment, RIM will no longer provide specific quantitative guidance. Some of the factors contributing to this include, ongoing weakness in the Company’s U.S. smartphone business, an increased focus on selling BlackBerry 7 smartphones to grow the subscriber base in advance of the BlackBerry 10 launch, increasing competitive pressure in the Company’s international markets and the introduction of certain new lower tier service pricing initiatives and a higher mix of sales coming from entry level products.

    Organizational and Board of Directors Update:

    Jim Balsillie, former Co-CEO of the Company, has resigned as a Director on the Company’s Board.

    “As I complete my retirement from RIM, I’m grateful for this remarkable experience and for the opportunity to have worked with outstanding professionals who helped turn a Canadian idea into a global success,” said Jim Balsillie.

    “On behalf of the Board and everyone at RIM, I would like to thank Jim for his 20 years of service to RIM,” said Barb Stymiest, Chair of RIM’s Board of Directors. “His energy, drive and enthusiasm helped build one of the most successful technology companies of our time.”

    In addition, David Yach will be retiring from his role as CTO, Software after 13 years with the Company and after 4 years with the company and following an open dialogue on the future of global operations, Jim Rowan, COO, Global Operations, has decided to pursue other interests. The Company is currently undertaking a search to hire a single COO with responsibilities to run the Company’s operations.

    “RIM would like to thank David Yach and Jim Rowan for their years of service and many contributions to RIM,” said Thorsten Heins, President and CEO. “We wish them well in their future pursuits.”

    Conference Call and Webcast

    A conference call and live webcast will be held beginning at 5 pm ET, March 29, 2012, which can be accessed by dialing 1-800-814-4859 (North America), (+1)416-644-3414 (outside North America) or through your personal computer or BlackBerry® PlayBook™ tablet atwww.rim.com/investors/events/index.shtml. A replay of the conference call will also be available at approximately 7 pm ET by dialing (+1)416-640-1917 and entering passcode 4466496#. A replay of the webcast will be available on your personal computer or BlackBerry PlayBook tablet by clicking the link above. This replay will be available until midnight ET, April 12, 2012.

    About Research In Motion

    Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry® solution in 1999. Today, BlackBerry products and services are used by millions of customers around the world to stay connected to the people and content that matter most throughout their day. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe, Asia Pacific and Latin America. RIM is listed on the NASDAQ Stock Market (NASDAQ: RIMM – News) and the Toronto Stock Exchange (TSX: RIM.TO – News). For more information, visit www.rim.com or www.blackberry.com.

    This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including: statements relating to RIM’s plans, strategies and objectives, statements relating to RIM’s ability to leverage its business strengths, the anticipated timing of the launch of RIM’s BlackBerry 10 platform, statements regarding the challenges RIM faces, opportunities and initiatives that RIM intends to consider or pursue, statements regarding RIM’s guidance practices in the future, and the Company’s expectations regarding revenue and earnings in fiscal 2012. The terms and phrases “discontinue”, “can”, “leverage”, “offering”, “challenges”, “plan”, “next several quarters”, “take”, “on track”, “refocus”, “opportunities”, “drive”, “initiatives”, “undertaking”, “maximize”, “outlook”, “will”, “ongoing”, “expects” and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by RIM in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that RIM believes are appropriate in the circumstances, including but not limited to general economic conditions, product pricing levels and competitive intensity, supply constraints, the timing and success of new product introductions, RIM’s expectations regarding its business, strategy and prospects, and RIM’s confidence in the cash flow generation of its business.

    Many factors could cause RIM’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: RIM’s ability to enhance current products and develop new products and services in a timely manner or at competitive prices, including risks related to further delays in new product introductions, such as the Company’s BlackBerry 10 smartphones; risks related to intense competition, including RIM’s ability to compete in the tablet market, and strategic alliances or transactions within the wireless communications industry; risks relating to RIM’s ability to maintain or grow its services revenue; RIM’s reliance on carrier partners and distributors; security risks and risks related to the collection, storage, transmission, use and disclosure of user and personal information; risks relating to network disruptions and other business interruptions, including costs, potential liabilities, lost revenue and reputational damage associated with service disruptions; RIM’s ability to manage inventory and asset risk; RIM’s ability to implement and realize the anticipated benefits of its Be Bold Excellence program (formerly referred to as the CORE program); RIM’s ability to maintain or increase its cash balance; potential additional charges relating to the impairment of goodwill or other intangible assets recorded on RIM’s balance sheet; RIM’s ability to attract and retain key personnel; RIM’s reliance on suppliers of functional components for its products and risks relating to its supply chain; RIM’s ability to maintain and enhance the BlackBerry brand; risks related to RIM’s international operations; risks related to government regulations, including regulations relating to encryption technology; RIM’s reliance on third-party network infrastructure developers, software platform vendors and service platform vendors; RIM’s ability to expand and manage its BlackBerry App World applications catalogue; RIM’s reliance on third-party manufacturers; risks relating to litigation, including litigation claims arising from the Company’s past practice of providing forward-looking guidance; potential defects in RIM’s products; RIM’s ability to manage its past growth and its ongoing development of service and support operations; disruptions to RIM’s business as a result of shareholder activism; risks related to intellectual property; and difficulties in forecasting RIM’s financial results, particularly over longer periods given the rapid technological changes, evolving industry standards, intense competition and short product life cycles that characterize the wireless communications industry.

    These risk factors and others relating to RIM are discussed in greater detail in the “Risk Factors” section of RIM’s Annual Information Form, which is included in its Annual Report on Form 40-F and the “Cautionary Note Regarding Forward-Looking Statements” section of RIM’s MD&A (copies of which filings may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on RIM’s forward-looking statements. RIM has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

     

                         Research In Motion Limited
                   Incorporated under the Laws of Ontario
  (United States dollars, in millions except share and per share amounts)
                                 (unaudited)

                   Consolidated Statements of Operations

                         Three months ended            For the year ended
                ------------------------------------ -----------------------
                 March 3, November 26, February 26,   March 3, February 26,
                     2012         2011         2011       2012         2011
---------------------------------------------------- -----------------------

Revenue         $   4,190  $     5,169  $     5,556  $  18,435  $    19,907
Cost of sales       2,789        3,759        3,103     11,856       11,082
                ------------------------------------ -----------------------
Gross margin        1,401        1,410        2,453      6,579        8,825
                ------------------------------------ -----------------------

  Gross margin %     33.4%        27.3%        44.2%      35.7%        44.3%

Operating
 expenses
 Research and
  development         386          369          383      1,559        1,351
 Selling,
  marketing and
  administration      650          567          705      2,604        2,400
 Amortization         152          146          125        571          438
 Impairment of
  goodwill            355            -            -        355            -
                ------------------------------------ -----------------------
                    1,543        1,082        1,213      5,089        4,189
                ------------------------------------ -----------------------

Income (Loss)
 from operations     (142)         328        1,240      1,490        4,636

 Investment
  income, net           5            2            3         21            8
                ------------------------------------ -----------------------

Income (Loss)
 before income
 taxes               (137)         330        1,243      1,511        4,644

Provision for
 (recovery of)
 income taxes         (12)          65          309        347        1,233

                ------------------------------------ -----------------------
Net income
 (loss)         $    (125) $       265  $       934  $   1,164  $     3,411
                ------------------------------------ -----------------------
                ------------------------------------ -----------------------


Earnings (loss)
 per share
  Basic         $   (0.24) $      0.51  $      1.79  $    2.22  $      6.36
                ------------------------------------ -----------------------
                ------------------------------------ -----------------------
  Diluted       $   (0.24) $      0.51  $      1.78  $    2.22  $      6.34
                ------------------------------------ -----------------------
                ------------------------------------ -----------------------


Weighted-average
 number of
 common shares
 outstanding
 (000's)
  Basic           524,160      524,139      522,764    524,101      535,986
  Diluted         524,160      524,139      524,334    524,190      538,330

Total common
 shares
 outstanding
 (000's)          524,160      524,160      523,869    524,160      523,869



                         Research In Motion Limited
                   Incorporated under the Laws of Ontario
   (United States dollars, in millions except per share data) (unaudited)

                        Consolidated Balance Sheets


                                                     March 3,  February 26,
As at                                                    2012          2011
----------------------------------------------------------------------------
Assets
Current
  Cash and cash equivalents                       $     1,527   $     1,791
  Short-term investments                                  247           330
  Accounts receivable, net                              3,062         3,955
  Other receivables                                       496           324
  Inventories                                           1,027           618
  Income taxes receivable                                 135             -
  Other current assets                                    365           241
  Deferred income tax asset                               197           229
                                                 ---------------------------
                                                        7,056         7,488

Long-term investments                                     337           577
Property, plant and equipment, net                      2,748         2,504
Goodwill                                                  304           508
Intangible assets, net                                  3,286         1,798
                                                 ---------------------------
                                                  $    13,731   $    12,875
                                                 ---------------------------
                                                 ---------------------------


Liabilities
 Current
  Accounts payable                                $       744   $       832
  Accrued liabilities                                   2,382         2,511
  Income taxes payable                                      -           179
  Deferred revenue                                        263           108
                                                 ---------------------------
                                                        3,389         3,630
Deferred income tax liability                             232           276
Income taxes payable                                       10            31
                                                 ---------------------------
                                                        3,631         3,937
                                                 ---------------------------

Shareholders' Equity
Capital stock and additional paid-in capital            2,446         2,359
Treasury stock                                           (299)         (160)
Retained earnings                                       7,913         6,749
Accumulated other comprehensive income (loss)              40           (10)
                                                 ---------------------------
                                                       10,100         8,938
                                                 ---------------------------
                                                  $    13,731   $    12,875
                                                 ---------------------------
                                                 ---------------------------



                        Research In Motion Limited
                  Incorporated under the Laws of Ontario
  (United States dollars, in millions except per share data) (unaudited)

                  Consolidated Statements of Cash Flows

                                              For the year ended
                                    --------------------------------------


                                        March 3. 2012   February 26, 2011
--------------------------------------------------------------------------


Cash flows from operating activities
Net income                           $          1,164  $            3,411

Adjustments to reconcile net income
 to net cash provided by
operating activities:
 Amortization                                   1,523                 927
 Deferred income taxes                             (5)                 92
 Income taxes payable                             (21)                  2
 Stock-based compensation                          97                  72
 Impairment of goodwill                           355                   -
 Other                                              9                   1
Net changes in working capital items             (210)               (496)
                                    --------------------------------------
Net cash provided by operating
 activities                                     2,912               4,009
                                    --------------------------------------

Cash flows from investing activities
Acquisition of long-term investments             (355)               (784)
Proceeds on sale or maturity of
 long-term investments                            376                 893
Acquisition of property, plant and
 equipment                                       (902)             (1,039)
Acquisition of intangible assets               (2,217)               (557)
Business acquisitions, net of cash
 acquired                                        (226)               (494)
Acquisition of short-term
 investments                                     (250)               (503)
Proceeds on sale or maturity of
 short-term investments                           550                 786
                                    --------------------------------------
Net cash used in investing
 activities                                    (3,024)             (1,698)
                                    --------------------------------------

Cash flows from financing activities
Issuance of common shares                           9                  67
Tax deficiencies related to stock-
 based compensation                                (2)                 (1)
Purchase of treasury stock                       (156)                (76)
Common shares repurchased                           -              (2,077)
                                    --------------------------------------
Net cash used in financing
 activities                                      (149)             (2,087)
                                    --------------------------------------
Effect of foreign exchange gain
 (loss) on cash and cash equivalents               (3)                 16
                                    --------------------------------------

Net increase (decrease) in cash and
 cash equivalents for the period                 (264)                240
Cash and cash equivalents, beginning
 of period                                      1,791               1,551
                                    --------------------------------------
Cash and cash equivalents, end of
 period                              $          1,527  $            1,791
                                    --------------------------------------
                                    --------------------------------------


As at                                   March 3, 2012   November 26, 2011
--------------------------------------------------------------------------

Cash and cash equivalents            $          1,527  $            1,123
Short-term investments                            247                 184
Long-term investments                             337                 195
                                    --------------------------------------
                                     $          2,111  $            1,502
                                    --------------------------------------
                                    --------------------------------------

  • What About BlackBerry Mobile Device Management?

    Research in Motion (RIM) has released a statement regarding their mobile device management solutions and where the company is headed in general. They seek to inform their consumers that they aren’t out of the game, but adapting and providing new services that better suit the needs of enterprise clients today.

    In the following statement they address their current BlackBerry Enterprise Server and mobile device management (MDM) for the future:

    “Organizations are under pressure to support a wide variety of devices from multiple manufacturers, as well as multiple form factors, with tablets gaining steam as business tools. As a longstanding pillar of MDM in the enterprise, we’ve worked to provide a clean, simple, and secure solution to help you manage whatever gets thrown your way. This is BlackBerry Mobile Fusion.”

    So they’ve replaced their old service with the comprehensive new BlackBerry Fusion. RIM comments:

    “It’s a huge leap forward for device management, and it’s built on the valued security model introduced with BlackBerry Enterprise Server. The evolution of BlackBerry Enterprise Server is BlackBerry Mobile Fusion.”

    RIM has integrated all the Blackberry corporate data security features that users have enjoyed in the past with new technology and have added iOS and Android to their management system as well. They claim it will interface seamlessly with all of these devices and provide users with an enhanced experience that can be trusted to deliver by even the most discerning IT professionals.

    RIM comments on the addition of other devices to their management systems:

    “BlackBerry Mobile Fusion supports the latest MDM capabilities available in iOS and Android, and is designed to enable administrators to apply corporate policies and configurations to manage and secure these devices. Additionally, customers will be able to leverage the application management capabilities of BlackBerry Mobile Fusion to manage the distribution of mobile applications to employees on these platforms.”

    So it seems they have plans to stick around despite the declining popularity of BlackBerry products and services. It could be their new platform could help revive their brand or at the very least entice existing clients to stick with them. It helps that they can interface with other devices now.

    We’ll have to wait and see how this all pans out for RIM and their BlackBerry branded products. Apple seems like it is the new enterprise leader so it all depends on how they can compete with them and make their products more attractive. Right now, that’s a lofty challenge.

  • Recent Research: BlackBerry Is Out!

    Recent Research: BlackBerry Is Out!

    Bad News for Research in Motion (RIM). A recent research report shows that 27% of RIM users have already replaced their BlackBerry devices or are on their way to doing so. Currently BlackBerry holds about a 70% rate for company-purchased smartphones, but those numbers decline dramatically as businesses plan for the next two years.

    Here are the findings from InformationWeek’s report titled, “Can RIM Be Saved?”:

    Findings:

    * 67% of our survey respondents consider Apple a strategic partner for enterprise mobility in the U.S. compared with 36% citing RIM and 38% citing Microsoft.

    * 46% say the former RIM co-CEOs’ leadership is a primary or significant factor in the company’s decline.

    * 4% of those using or considering RIM products plan to migrate to BlackBerry Mobile Fusion.

    * Just 1% describe RIM as a smartphone market leader, positioned to continue to grow its influence.

    Content director of InformationWeek Reports, Lorna Garey explains:

    “IT pros still like BlackBerry devices,”

    “They like the security and manageability of the platform. But end users have largely spoken, and Apple and Android devices are the future, unless RIM ‘s new CEO institutes some bold changes.”