-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, H8vsyEeYQ7oHPEYdJjXDwbz0a3/peWllxeZc54oxRLG48IMctCFmhzy1GyXHNtNK LjOOdgIS8FpLDe9YdsptlQ== 0001341004-06-002669.txt : 20061004 0001341004-06-002669.hdr.sgml : 20061004 20061004140854 ACCESSION NUMBER: 0001341004-06-002669 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20061004 FILED AS OF DATE: 20061004 DATE AS OF CHANGE: 20061004 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RESEARCH IN MOTION LTD CENTRAL INDEX KEY: 0001070235 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE & TELEGRAPH APPARATUS [3661] IRS NUMBER: 000000000 FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-29898 FILM NUMBER: 061127749 BUSINESS ADDRESS: STREET 1: 295 PHILLIP ST STREET 2: WATERLOO CITY: ONTARIO CANADA STATE: A6 ZIP: 00000 BUSINESS PHONE: 5198887465 MAIL ADDRESS: STREET 1: 295 PHILLIP STREET STREET 2: WATERLOO, ONTARIO N2L 3W8 CITY: ONTARIO STATE: A6 ZIP: N2L 3W8 6-K 1 tor579.txt FORM 6-K =============================================================================== SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of, October 2006 --------------------------------- -------------- Commission File Number 000-29898 --------------------------------- -------------- Research In Motion Limited - ------------------------------------------------------------------------------- (Translation of registrant's name into English) 295 Phillip Street, Waterloo, Ontario, Canada N2L 3W8 - ------------------------------------------------------------------------------- (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40F: Form 20-F Form 40-F X -------------- ------------ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _________ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _________ Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No X ----------------- --------------- If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_______________ =============================================================================== DOCUMENTS INCLUDED AS PART OF THIS REPORT Document 1 Material Change Report, dated October 3, 2006. This Report on Form 6-K is incorporated by reference into: (i) the Registration Statement on Form S-8 of the Registrant, which was originally filed with the Securities and Exchange Commission on March 28, 2002 (File No. 333-85294); and (ii) the Registration Statement on Form S-8 of the Registrant, which was originally filed with the Securities and Exchange Commission on October 21, 2002 (File No. 333-100684). DOCUMENT 1 FORM 51-102F3 MATERIAL CHANGE REPORT 1. Name and Address of Company Research In Motion Limited (the "Company" or "RIM") 295 Phillip Street Waterloo, Ontario N2L 3W8 2. Date of Material Change September 28, 2006. 3. News Release Two news releases were issued in Waterloo, Ontario on September 28, 2006 through the newswire services of CCN Matthews and Market Wire, copies of which are annexed hereto as Schedule "A". 4. Summary of Material Change RIM announced on September 28, 2006 that the Audit Committee of RIM's Board of Directors, comprised solely of independent directors, is completing a management-initiated, voluntary review of RIM's historical option granting practices. RIM announced that the Audit Committee has made a preliminary determination that GAAP accounting errors were made around the administration of certain historical stock options granted from fiscal 1998 to present, and has made a preliminary determination that a restatement of RIM's historical financial statements will be required to reflect this. Although the review is ongoing, it is currently expected that the potential effect of such restatement will be to increase the amount of non-cash charges associated with past option grants and thereby reduce the amount of the Company's previously reported GAAP earnings by an aggregate amount of approximately $25-45 million over the period since the Company's IPO in 1997. RIM also announced on September 28, 2006 preliminary second quarter results for the three months ended September 2, 2006. The results reported on September 28, 2006 were preliminary pending a potential restatement related to RIM's historical non-cash charges associated with past option grants. It is the Company's belief that the potential impact of any restatement on GAAP and adjusted operating results for the first, second, and subsequent quarters of fiscal 2007, will be immaterial. RIM will file final financial statements for the second quarter of fiscal 2007 following the completion of the review. Revenue for the second quarter of fiscal 2007 was $658.5 million, up 7.4% from $613.1 million in the previous quarter and up 34.4% from $490.1 million in the same quarter of last year. Preliminary GAAP net income for the quarter was $140.8 million, or $0.74 per share diluted. 5. Full Description of Material Change RIM announced on September 28, 2006 that the Audit Committee of RIM's Board of Directors, comprised solely of independent directors, is completing a management-initiated, voluntary review of RIM's -2- historical option granting practices. Following the heightened public awareness and concern regarding stock option grant practices by publicly traded companies, RIM elected to commence a pro-active review of its own practices. The Audit Committee is being assisted in this regard by outside legal counsel and by outside accounting consultants. The Audit Committee has made a preliminary determination that GAAP accounting errors were made around the administration of certain historical stock options granted from fiscal 1998 to present, and has made a preliminary determination that a restatement of RIM's historical financial statements will be required to reflect this. Although the review is ongoing, it is currently expected that the potential effect of such restatement will be to increase the amount of non-cash charges associated with past option grants and thereby reduce the amount of the Company's previously reported GAAP earnings by an aggregate amount of approximately $25-45 million over the period since the Company's IPO in 1997. The Company has voluntarily informed the SEC and the OSC about its internal review of its stock option grants. The Company does not at present anticipate a material adjustment to current or future fiscal years' operating results, including the preliminary Q2 operating results reported on September 28, 2006, and RIM has defined enhanced procedures and controls to address issues of this nature. RIM also announced on September 28, 2006 preliminary second quarter results for the three months ended September 2, 2006. The results reported on September 28, 2006 were preliminary pending a potential restatement related to RIM's historical non-cash charges associated with past option grants. It is the Company's belief that the potential impact of any restatement on GAAP and adjusted operating results for the first, second, and subsequent quarters of fiscal 2007, will be immaterial. RIM will file final financial statements for the second quarter of fiscal 2007 following the completion of the review. Revenue for the second quarter of fiscal 2007 was $658.5 million, up 7.4% from $613.1 million in the previous quarter and up 34.4% from $490.1 million in the same quarter of last year. The revenue breakdown for the quarter was approximately 72% for handhelds, 19% for service, 6% for software, and 3% for other revenue. Approximately 705,000 BlackBerry subscriber accounts were added in the quarter. At the end of the quarter, the total BlackBerry subscriber account base was approximately 6.2 million. Revenue and subscriber account additions will not be impacted by any potential restatement referenced above. Preliminary GAAP net income for the quarter was $140.8 million, or $0.74 per share diluted. Excluding regular stock option expense of $4.3 million, preliminary adjusted net income was $145.1 million, or $0.77 per share diluted. The preliminary net income, preliminary adjusted net income, preliminary net income per share and preliminary adjusted net income per share do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other issuers. These adjusted measures should be considered in the context of RIM's GAAP results. Revenue for the third quarter of fiscal 2007 ending December 2, 2006 is expected to be in the range of $780-$820 million. Subscriber account additions in the third quarter are expected to be approximately 800,000. GAAP earnings per share for the third quarter are expected to be in the range of 88-95 cents per share diluted. Adjusted earnings per share for the third quarter, which excludes regular stock option expense of approximately $4.5 million, are forecast to be in the range of 90-97 cents per share diluted. The total of cash, cash equivalents, short-term and long-term investments was $1.2 billion as at September 2, 2006, compared to $1.3 billion at the end of the previous quarter, a decrease of $100 million -3- over the prior quarter. Uses of cash in the quarter included a business acquisition, capital expenditures and common share repurchases. Certain of the statements contained in the news releases and in this Material Change Report constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, and readers are urged to consider carefully the cautionary language regarding such-forward looking statements contained in each of the news releases. All figures in this material change report are in US dollars. 6. Reliance on subsection 7.1(2) or (3) of National Instrument 51-102 Not applicable. 7. Omitted Information No significant facts have been omitted from this report. 8. Executive Officer For further information, please contact Dennis Kavelman - Chief Financial Officer of the Company at (519) 888-7465. 9. Date of Report Dated at Waterloo, Ontario, this 3rd day of October, 2006. SCHEDULE "A" September 28, 2006 FOR IMMEDIATE RELEASE - --------------------- RIM ANNOUNCES MANAGEMENT-INITIATED, VOLUNTARY REVIEW OF HISTORICAL STOCK OPTION GRANTS Waterloo, Ontario - Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM) announced today that the Audit Committee of RIM's Board of Directors, comprised solely of independent directors, is completing a management-initiated, voluntary review of RIM's historical option granting practices. Following the heightened public awareness and concern regarding stock option grant practices by publicly traded companies, RIM elected to commence a pro-active review of its own practices. The Audit Committee is being assisted in this regard by outside legal counsel and by outside accounting consultants. The Audit Committee has made a preliminary determination that GAAP accounting errors were made around the administration of certain historical stock options granted from fiscal 1998 to present, and has made a preliminary determination that a restatement of RIM's historical financial statements will be required to reflect this. Although the review is ongoing, it is currently expected that the potential effect of such restatement will be to increase the amount of non-cash charges associated with past option grants and thereby reduce the amount of the Company's previously reported GAAP earnings by an aggregate amount of approximately $25-45 million over the period since the Company's IPO in 1997. The Company has voluntarily informed the SEC and the OSC about its internal review of its stock option grants. The Company does not at present anticipate a material adjustment to current or future fiscal years' operating results, including the preliminary Q2 operating results reported today in its separate earnings press release, and RIM has defined enhanced procedures and controls to address issues of this nature. All figures in U.S. dollars. About Research In Motion (RIM) Research in Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity to data. RIM's portfolio of award-winning products, services and embedded technologies are used by thousands of organizations around the world and include the BlackBerry(R) wireless platform, the RIM Wireless Handheld(TM) product line, software development tools, radio-modems and software/hardware licensing agreements. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe and Asia Pacific. RIM is listed on the Nasdaq Stock Market (Nasdaq: RIMM) and the Toronto Stock Exchange (TSX: RIM). For more information, visit www.rim.com or www.blackberry.com. - -30- Media Contact: Marisa Conway Brodeur for RIM (212) 771-3639 mconway@brodeur.com -2- Investor Contact: RIM Investor Relations (519) 888-7465 investor_relations@rim.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 relating to RIM's ongoing Company-initiated voluntary review of its historical option granting practices, including statements regarding preliminary determinations and expectations regarding the financial impact of the review on RIM's historical, current and future financial statements. The terms and phrases, "preliminary determinations", "will", "expected", "anticipate" 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, its current assessment of matters relating to its ongoing internal review, 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. Many factors could cause RIM's actual results, or future events to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: final determinations made by RIM's Audit Committee, outside advisors, auditors and others, additional corrections that may be required based on factual findings and analysis in the ongoing review, legal and accounting developments regarding stock option grants and interpretations of such guidance. Readers are cautioned to consider the forward-looking statements in light of these risks 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 (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. The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited. RIM, Research In Motion and BlackBerry are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. RIM assumes no liability and makes no representation, warranty or guarantee in relation to third party products. September 28, 2006 FOR IMMEDIATE RELEASE - --------------------- RESEARCH IN MOTION REPORTS PRELIMINARY SECOND QUARTER RESULTS Waterloo, Ontario - Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM), a world leader in the mobile communications market, today reported preliminary second quarter results for the three months ended September 2, 2006 (all figures in U.S. dollars). The results reported today are preliminary pending a potential restatement related to RIM's historical non-cash charges associated with past option grants. As disclosed in a separate press release issued by RIM today, RIM is completing a management-initiated, voluntary review of RIM's historical option granting practices. It is the Company's belief that the potential impact of any restatement on GAAP and adjusted operating results for the first, second, and subsequent quarters of fiscal 2007, will be immaterial. RIM will file final financial statements for the second quarter of fiscal 2007 following the completion of the review. Revenue for the second quarter of fiscal 2007 was $658.5 million, up 7.4% from $613.1 million in the previous quarter and up 34.4% from $490.1 million in the same quarter of last year. The revenue breakdown for the quarter was approximately 72% for handhelds, 19% for service, 6% for software, and 3% for other revenue. Approximately 705,000 BlackBerry subscriber accounts were added in the quarter. At the end of the quarter, the total BlackBerry subscriber account base was approximately 6.2 million. Revenue and subscriber account additions will not be impacted by any potential restatement referenced above. "We are very pleased to report strong financial performance and momentum in our second quarter," said Jim Balsillie, Chairman and Co-CEO at RIM. "The second half of the fiscal year is promising to be one of the most interesting periods in our history with the launch of exciting new products, including the BlackBerry Pearl, on networks around the world. Our technology and business strategies continue to open new markets for RIM and expand our opportunities for growth." Preliminary GAAP net income for the quarter was $140.8 million, or $0.74 per share diluted. Excluding regular stock option expense of $4.3 million, preliminary adjusted net income was $145.1 million, or $0.77 per share diluted. The preliminary net income, preliminary adjusted net income, preliminary net income per share and preliminary adjusted net income per share do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other issuers. These adjusted measures should be considered in the context of RIM's GAAP results. Revenue for the third quarter of fiscal 2007 ending December 2, 2006 is expected to be in the range of $780-$820 million. Subscriber account additions in the third quarter are expected to be approximately 800,000. GAAP earnings per share for the third quarter are expected to be in the range of 88-95 cents per share diluted. Adjusted earnings per share for the third quarter, which excludes regular stock option expense of approximately $4.5 million, are forecast to be in the range of 90-97 cents per share diluted. -2- The total of cash, cash equivalents, short-term and long-term investments was $1.2 billion as at September 2, 2006, compared to $1.3 billion at the end of the previous quarter, a decrease of $100 million over the prior quarter. Uses of cash in the quarter included a business acquisition, capital expenditures and common share repurchases. Reconciliation of preliminary GAAP net income to preliminary adjusted net income (United States dollars, in thousands except per share data) For the three months ended September 2, 2006 - ------------------------------------------------------------------------------ Preliminary GAAP net income, as reported $ 140,777 Adjustment: Regular stock option expense 4,300 ------------------ Preliminary adjusted net income $ 145,077 ================== Preliminary adjusted net income per share, diluted $ 0.77 ================== Note: Preliminary adjusted net income and preliminary adjusted net income per share do not have any standardized meaning prescribed by GAAP and thus are not comparable to similar measures presented by other issuers. Investors are encouraged to consider this adjusted measure in the context of RIM's GAAP results. Highlights of the second quarter: o RIM announced Hosted BlackBerry Enterprise Server(TM). o Cingular launched the BlackBerry 7130c in the U.S. o Rogers launched the BlackBerry 7130g in Canada. o Amena launched the BlackBerry 8700g in Spain. o Mobiltel launched BlackBerry in Bulgaria. o Globacom and Alcatel launch BlackBerry in Nigeria. o LUXGSM launched the BlackBerry 8707v in Luxembourg. o Vodafone Australia launched the BlackBerry 7130v and the BlackBerry 8707v in Australia. o Vodafone Spain launched the BlackBerry 7130v and the BlackBerry 8707v in Spain. o Vodafone Ireland launched the BlackBerry 8707v in Ireland. o Vodafone Netherlands launched the BlackBerry 8707v in the Netherlands. -3- o Vodafone U.K. launched the BlackBerry 7130v in the U.K. o Vodafone Italia launched the BlackBerry 7130v and the BlackBerry 8707v in Italy. o Proximus launched the BlackBerry 8707v in Belgium. o SmarTone-Vodafone launched the BlackBerry 8707v in Hong Kong. o Optus launched the BlackBerry 7130g and the BlackBerry 8707g in Australia. o Telstra launched the BlackBerry 7130g in Australia. o Smart launched the BlackBerry 8700g in the Philippines. o KPN launched the BlackBerry 7130g in the Netherlands. o Taiwan Mobile announced plans to launch BlackBerry in Taiwan. o T-Mobile launched the BlackBerry 7130g in the UK. o Dobson Cellular Systems launched the BlackBerry 7130g in the U.S. o M1 launched the BlackBerry 8707v in Singapore. o NII Holdings launched BlackBerry 7100i for Nextel Mexico and Nextel Peru customers. o Movistar launched BlackBerry Connect for the Palm Treo 650 Smartphone in Spain. o Vodafone Australia launched BlackBerry Connect for the Palm Treo 650 Smartphone in Australia. o Cingular Wireless launched BlackBerry Connect for the Palm Treo 650 Smartphone in the U.S. o Indosat and Sony Ericsson launched BlackBerry Connect for the M600i Mobile Phone in Indonesia. Highlights Subsequent to Quarter End: o RIM introduced the new BlackBerry Pearl smartphone. o T-Mobile USA launched the BlackBerry Pearl in the U.S. o Mobistar launched the BlackBerry 7130g in Belgium. o Verizon Wireless launched the BlackBerry 8703e in the U.S. o Sprint launched the BlackBerry 8703e in the U.S. o Bell launched the BlackBerry 8703e in Canada. o NTT DoCoMo announced plans to launch the BlackBerry 8707h in Japan. o Airtel announced plans to launch the BlackBerry 7130g in India. o T-Mobile Slovakia launched the BlackBerry 8700g in Slovakia. o Mobily and RIM announce plans to launch BlackBerry in Saudi Arabia. o Maxis launched the BlackBerry 8707g in Malaysia. The replay of the company's Q2 conference call can be accessed after 7 p.m. (eastern), September 28, 2006 until midnight (eastern), October 12, 2006. It can be accessed by dialing 416-640-1917 and entering passcode 21203222#. The conference will also appear on the RIM web site, live at 5:30 pm (eastern) and archived at http://www.rim.com/investors/events/index.shtml until midnight October 13, 2006. About Research In Motion (RIM) Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity. RIM's portfolio -4- of award-winning products, services and embedded technologies are used by thousands of organizations around the world and include the BlackBerry(R) wireless platform, the RIM Wireless Handheld(TM) product line, software development tools, radio-modems and software/hardware licensing agreements. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe and Asia Pacific. RIM is listed on the Nasdaq Stock Market (Nasdaq: RIMM) and the Toronto Stock Exchange (TSX: RIM). For more information, visit www.rim.com or www.blackberry.com. Media Contact: Investor Contact: Marisa Conway RIM Investor Relations Brodeur for RIM 519.888.7465 (212) 771-3639 investor_relations@rim.com mconway@brodeur.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 revenue and earnings expectations for the third quarter of fiscal 2006, anticipated growth in subscribers, plans relating to RIM, including plans for new product launches, and its expectations regarding its carrier partners, and RIM's expectations relating to the outcome of its ongoing management-initiated, voluntary review of its historical option granting practices. The terms and phrases, "belief", "will", "is promising", "continue to", "expected", "forecast", "plans" 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. 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: risks relating to RIM's ongoing management-initiated, voluntary review of its historical option granting practices, including the risk that the financial impact may be different or larger than the Company currently expects; risks relating to RIM's intellectual property rights, including; RIM's ability to enhance current products and develop new products; RIM's reliance on carrier partners, third-party network developers and suppliers; and intense competition. 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 (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. The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited. RIM, Research In Motion and BlackBerry are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. Research In Motion Limited Incorporated under the Laws of Ontario (United States dollars, in thousands except per share data) Preliminary Consolidated Statements of Operations
For the three months ended September 2, June 3, August 27, (unaudited) 2006 2006 2005 - ----------------------------------------------------------------------------------------------------------- Revenue $ 658,541 $ 613,116 $ 490,082 Cost of sales 288,369 275,269 221,067 ------------------------------------------------------ Gross margin 370,172 337,847 269,015 ------------------------------------------------------ Gross Margin % 56.2% 55.1% 54.9% Expenses Research and development 55,622 51,518 37,677 Selling, marketing and administration 115,860 107,255 72,263 Amortization 18,453 16,071 11,549 Litigation - - 6,640 ------------------------------------------------------ 189,935 174,844 128,129 ------------------------------------------------------ Income from operations 180,237 163,003 140,886 Investment income 12,606 12,051 15,700 ------------------------------------------------------ Income before income taxes 192,843 175,054 156,586 ------------------------------------------------------ Provision for income taxes Current 30,740 11,255 6,681 Deferred 21,326 34,026 38,850 ------------------------------------------------------ 52,066 45,281 45,531 ------------------------------------------------------ Net Income $ 140,777 $ 129,773 $ 111,055 ====================================================== Earnings per share Basic $ 0.76 $ 0.70 $ 0.58 ====================================================== Diluted $ 0.74 $ 0.68 $ 0.56 ====================================================== Weighted average number of common shares outstanding (000's) Basic 185,054 186,282 190,896 Diluted 189,627 192,061 198,417 Total common shares outstanding (000's) 183,808 186,523 191,024
Research In Motion Limited Incorporated under the Laws of Ontario (United States dollars, in thousands except per share data) Preliminary Consolidated Balance Sheets
As at September 2, March 4, (unaudited) 2006 2006 - ------------------------------------------------------------------------------------------------ Assets Current Cash and cash equivalents $ 459,648 $ 459,540 Short-term investments 237,670 175,553 Trade receivables 376,510 315,278 Other receivables 32,178 31,861 Inventory 195,665 134,523 Other current assets 50,266 45,035 Deferred income tax asset 38,988 94,789 -------------------------------------- 1,390,925 1,256,579 Investments 467,324 614,309 Capital assets 397,144 326,313 Intangible assets 128,678 85,929 Goodwill 111,659 29,026 -------------------------------------- $ 2,495,730 $ 2,312,156 ====================================== Liabilities Current Accounts payable $ 120,685 $ 94,954 Accrued liabilities 178,939 144,912 Income taxes payable 38,943 17,584 Deferred revenue 24,094 20,968 Current portion of long-term debt 278 262 -------------------------------------- 362,939 278,680 Long-term debt 6,883 6,851 Deferred income tax liability 30,193 27,858 -------------------------------------- 400,015 313,389 Shareholders' equity 2,095,715 1,998,767 -------------------------------------- $ 2,495,730 $ 2,312,156 ======================================
Research In Motion Limited Incorporated under the Laws of Ontario (United States dollars, in thousands except per share data) Preliminary Consolidated Statements of Cash Flows
For the three For the six months ended months ended September 2, September 2, (unaudited) 2006 2006 - ------------------------------------------------------------------------------------------------------------ Cash flows from operating activities Net income $ 140,777 $ 270,550 Items not requiring an outlay of cash: Amortization 30,590 57,399 Deferred income taxes 21,422 52,852 Share-based payments 4,389 8,909 Other (632) (451) Net changes in working capital items 54,019 (38,572) ----------------------------------- Net cash provided by operating activities 250,565 350,687 ----------------------------------- Cash flows from financing activities Issuance of share capital 6,880 17,200 Common shares repurchased pursuant to Common Share Repurchase Program (203,933) (203,933) Repayment of long-term debt (66) (129) ----------------------------------- Net cash used in financing activities (197,119) (186,862) ----------------------------------- Cash flows from investing activities Acquisition of investments (3,912) (9,012) Proceeds on sale or maturity of investments 17,821 35,701 Acquisition of capital assets (68,639) (112,704) Acquisition of intangible assets (8,601) (30,692) Business acquisitions (72,578) (111,456) Acquisition of short-term investments (20,978) (21,756) Proceeds on sale and maturity of short-term investments 5,609 85,596 ----------------------------------- Net cash used in investing activities (151,278) (164,323) ----------------------------------- Effect of foreign exchange gain on cash and cash equivalents 606 606 ----------------------------------- Net increase (decrease) in cash and cash equivalents for the period (97,226) 108 Cash and cash equivalents, beginning of period 556,874 459,540 ----------------------------------- Cash and cash equivalents, end of period $ 459,648 $ 459,648 =================================== September 2, June 3, As at 2006 2006 - ---------------------------------------------------------------------------------------------------------- Cash and cash equivalents $ 459,648 $ 556,874 Short-term investments 237,670 166,275 Investments 467,324 532,749 ----------------------------------- Cash, cash equivalents, short-term and long-term investments $ 1,164,642 $ 1,255,898 ===================================
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. RESEARCH IN MOTION LIMITED ------------------------------------ (Registrant) Date: October 4, 2006 By: /S/ DENNIS KAVELMAN ------------------------- ------------------------------- Name: Dennis Kavelman Title: Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----