RIM defeats downturn: Strong second quarter results

Research in Motion, the business behind the BlackBerry, reported strong growth for its second quarter. Revenue for the second quarter of fiscal 2009 was $2.58 billion, up 15% from $2.24 billion in the previous quarter and up 88% from $1.37 billion in the same quarter of last year.

The revenue breakdown for the quarter was approximately 82% for devices, 13% for service, 3% for software and 2% for other revenue. During the quarter, RIM shipped approximately 6.1 million devices.

Approximately 2.6 million net new BlackBerry subscriber accounts were added in the quarter. At the end of the quarter, the total BlackBerry subscriber account base was approximately 19 million.

Jim Balsillie, co-CEO at RIM, stated: “Fiscal 2009 is proving to be an extraordinary year for RIM and its partners. We shipped over 11 million BlackBerry smartphones in the first half and we’re gearing up for an even stronger second half. Our enterprise business remains strong and our momentum in the consumer marketplace continues as we head into the holiday buying season with an amazing product portfolio and solid marketing support from partners.”

Net income for the quarter was $495.5 million, or $0.86 per share diluted, compared with net income of $482.5 million, or $0.84 per share diluted, in the prior quarter and net income of $287.7 million, or $0.50 per share diluted, in the same quarter last year.

Revenue for the third quarter of fiscal 2009 ending 29 November, 2008 is expected to be in the range of $2.95-$3.10 billion. Net subscriber account additions in the third quarter are expected to be approximately 2.9 million.

Earnings per share for the third quarter are expected to be in the range of $0.89-$0.97 per share diluted based on a gross margin of approximately 47% and operating expenses that are 1-2% lower as a percentage of revenue than in the second quarter.

The total of cash, cash equivalents, short term and long term investments was $2.24 billion as at 30 August 2008, compared to $2.08 billion at the end of the previous quarter, an increase of $163 million over the prior quarter. Uses of cash in the quarter included capital expenditures of approximately $190 million and intangible asset purchases of approximately $234 million.

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