Research In Motion Shows Strong BlackBerry Growth

Waterloo, Ontario-based Research In Motion Ltd. reported third-quarter results for the three months ended Nov. 30, 1999. In addition, the Board of Directors declared a change in reporting currency of the company's financial statements. Commencing with the fiscal period ending Nov. 30, 1999, the company's functional and reporting currency will be United States dollars.

Revenue for the third quarter, fiscal 2000 was US $23.7 million, representing an increase of 35% from revenue of US $17.5 million in the same period last year. Net income for the quarter was US $3.2 million or US $0.05 cents per share basic and fully diluted, compared with a net income of US $2.8 million, or US $0.05 cents basic and US $0.04 cents fully diluted per share in the same quarter last year.

During the quarter, the company completed a secondary offering of 5,595,000 common shares, closing for net proceeds of US $162.5 million (including exercised underwriter overallotment options). At Nov. 30, 1999, the company had total cash, cash equivalents, and marketable securities of US $217.6 million.

"Partnerships were a major theme for the third quarter," said Jim Balsillie, chairman and co-CEO. "New distribution relationships for BlackBerry were established with Dell Computer, RCN, espernet.com, and other solution providers. American Mobile launched their eLink wireless email service using the RIM 850; new information services and various software applications for vertical markets were introduced for the RIM Inter@ctive Pager 950 and BellSouth service; and major milestones were reached with Diversinet as we build the necessary tools for wireless e-commerce. These ongoing initiatives, together with continued subscriber momentum, represent a strong foundation for growth going forward."

Edited by Ellen Jensen