Press Release

April 9, 2002

Research In Motion Reports Fourth Quarter and Fiscal 2002 Year-end Results

Waterloo, ON - Research In Motion Limited ("RIM") (Nasdaq: RIMM, TSE: RIM), a world leader in the mobile communications market, today reported results for the fourth quarter and fiscal year ended March 2, 2002 (all figures in US $ and Canadian GAAP).

Revenue for the fourth quarter of fiscal 2002 was $66.1 million, compared to $70.9 million in the previous quarter. BlackBerry™ accounted for approximately 82% of the Company's current quarterly revenue, with RIM Wireless Handhelds™ (non-BlackBerry), OEM radio modems and other revenues accounting for the remaining 18%. Revenue for the fiscal year ended March 2, 2002 was $294.1 million, an increase of 33% over the $221.3 million in the prior year.

Gross margin in the quarter was 42%, as compared to 37% in the prior quarter. This increase was primarily a result of an increased percentage of software, service, and non-recurring engineering revenues, together with selected component inventory cost reductions, as compared to the prior quarter.

The total number of BlackBerry subscribers increased by approximately 32,000 to 321,000 as at March 2, 2002. Over 14,400 organizations are currently using BlackBerry.

"A variety of important strategic accomplishments and milestones were achieved by RIM over the last several months," said Jim Balsillie, Chairman and Co-CEO. "In addition to launching the first wireless handheld ready for GPRS networks in North America, RIM signed agreements with a number of new carrier partners in North America, Europe and Asia. RIM also dramatically expanded its partnership and development opportunities through the introduction of the BlackBerry Development Environment for Java and the BlackBerry reference design program."

The net loss for the quarter was $8.6 million or $0.11 per share compared to a net loss of $6.3 million or $0.08 per share in the prior quarter. The results for the fourth quarter included a $3.9 million reduction of selling, marketing and administration expenses with respect to a recovery of a trade receivable previously written off. This reduced the net loss by $0.03 per share for the quarter.

For the year, the net loss was $28.5 million or $0.36 per share compared to a net loss of $6.2 million or $0.08 per share in the prior year. The majority of the loss in fiscal 2002 was due to the pre-tax write-down of investments of $5.3 million and a $16.1 million write-down of selected inventory component parts.

Gross research and development expenditures were $14.8 million or 22% of revenue in the quarter ended March 2, 2002, compared to $14.1 million or 20% of revenue in the prior quarter. For the year, gross R&D expenditures were $49.5 million or 17% of revenue as compared to $25.7 million or 12% of revenue in the previous year. Continued focus on development of next generation handhelds together with ongoing development of the BlackBerry platform has driven the increase in research and development expenses. Net research and development expenditures were $12.0 million for the three months ended March 2, 2002 as compared to $10.5 million last quarter.

Selling, marketing and administration expenses were $26.6 million or 40% of revenue, compared to $25.7 million or 36% of revenue in the prior quarter. The increase over the prior quarter was primarily related to additional personnel to support the increased number of carrier partners. RIM will continue to build this infrastructure as expansion continues in Asia and Europe.

Cash, cash equivalents and marketable securities were $644.6 million as at March 2, 2002 compared to $656.3 million at the end of the previous quarter, for a net decrease of $11.7 million quarter over quarter. Cash flow from operating and financing activities was $2.7 million, offset by investments in capital and intangible assets of $14.4 million.

Highlights of the fourth quarter:

  • Nextel Communications, RIM and Motorola announced an agreement to develop a new BlackBerry handheld with both data and voice capabilities. This new handheld will operate on Nextel's national network using Motorola's iDEN® integrated digital wireless network technology.
  • RIM announced a supply agreement with AT&T Wireless in the United States. AT&T Wireless will purchase BlackBerry 5810 Wireless Handhelds with associated software and service for operation on AT&T Wireless' GSM/GPRS network.
  • T-Mobile and RIM announced that the companies will work together to market BlackBerry to businesses in Europe through T-Mobile's distribution channels.
  • RIM announced the expansion of its UK agreement with mm02 (formerly part of British Telecommunications) to supply BlackBerry throughout mm02's European operating businesses. Through mm02, BlackBerry is now commercially available in the UK, the Netherlands and Ireland, with BlackBerry user trials underway in Germany.
  • Telecom Italia Group and RIM announced that the companies will work together to introduce the BlackBerry wireless solution to enterprise customers in the Italian market.
  • Rogers AT&T Wireless and RIM announced an agreement to add the new BlackBerry 5810 Wireless Handheld to Rogers AT&T Wireless' existing BlackBerry product line-up in Canada.
  • Business Objects and RIM announced an agreement to develop mobile Business Intelligence (BI) solutions for BlackBerry. The first output of this alliance will be support for BUSINESSOBJECTS™ INFOVIEW Mobile 4.1 using BlackBerry Wireless Handhelds.
  • RIM and PrinterOn Corporation announced an alliance to deliver and market PrinterOn's Wireless Internet Printing application for BlackBerry that combines viewing, faxing and printing capabilities for email and email attachments.

Highlights subsequent to quarter end:

  • RIM introduced the BlackBerry 5810, the first wireless handheld ready to support GSM/GPRS networks in North America. The new Java-based handheld delivers email, phone, SMS, browser, and organizer features in a single handheld that is "Always On, Always Connected®".
  • RIM announced an agreement with Hutchison Telecommunications to provide BlackBerry to corporate customers in Hong Kong, making Hutchison Telecom the first mobile operator to offer BlackBerry in Asia.
  • RIM announced plans to offer a BlackBerry reference design program that will provide other manufacturers with a comprehensive hardware and software platform for building advanced devices based on embedded BlackBerry and Java technologies.
  • RIM introduced its BlackBerry Development Environment for the Java™ 2 Platform, Micro Edition (J2ME™) to support the broad development of secure enterprise applications for BlackBerry and to open the BlackBerry platform up to a large and growing developer community that currently includes over three million Java developers.
  • RIM announced a new family of OEM radio modems for GSM/GPRS wireless networks worldwide, providing RIM with the opportunity to sell its OEM radio modems in international markets for the first time.
  • Sun Microsystems and RIM showcased Java-based wireless enterprise technologies at the JavaOne conference. RIM and Sun are working together to provide the platform, products, services and tools necessary for leading enterprise software developers to extend their applications wirelessly.
  • Xerox and RIM announced a solution that couples Xerox mDoc 3.0 software with BlackBerry wireless email features to enable users to access documents residing on an enterprise server and email, fax or print these documents on the go.
  • Cognos and RIM announced an agreement whereby Cognos will develop mobile business intelligence solutions for BlackBerry. The first output of this alliance is support for Cognos NoticeCast using BlackBerry handhelds.

The replay of the company's Q4 conference call can be accessed after 7 p.m. (eastern time) April 9, 2002 until midnight (eastern) April 16, 2002. It can be accessed by dialing (416) 640-1917 and entering reservation number 181806#. The conference will also appear on the RIM web site, live and archived, at www.rim.net/investors until April 26, 2002.

About Research In Motion

Research In Motion Limited is a leading designer, manufacturer and marketer of innovative wireless solutions for the mobile communications market. Through development and integration of hardware, software and services, RIM provides solutions for seamless access to time-sensitive information including email, messaging, Internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers around the world to enhance their products and services with wireless connectivity. RIM's portfolio of award-winning products includes the RIM Wireless Handheld™ product line, the BlackBerry™ wireless solution, embedded radio-modems and software development tools. Founded in 1984 and based in Waterloo, Ontario RIM operates offices in Canada, the United States and Europe. RIM is listed on the Nasdaq Stock Market (Nasdaq: RIMM) and the Toronto Stock Exchange (TSE: RIM). For more information, visit www.rim.net. Investors may contact investor_relations@rim.net. Customers may contact info@rim.net.

Research In Motion, RIM and BlackBerry are trademarks of Research In Motion Limited. Research In Motion and RIM are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries. All other brands, products and company names mentioned herein may be trademarks or registered trademarks of their respective holders.

Forward-looking statements in this news release are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used herein, words such as "intend" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions made by and information available to Research In Motion Limited. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements include , without limitation, possible product defects and product liability, risks related to international sales and potential foreign currency exchange fluctuations, significant fluctuations of quarterly operating results, changes in Canadian and foreign laws and regulations, continued acceptance of RIM's products, increased levels of competition, technological changes and the successful development of new products, dependence on third-party networks to provide services, dependence on intellectual property rights and other risks and factors detailed from time to time in RIM's periodic reports filed with the United States Securities and Exchange Commission, and other regulatory authorities.

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

Consolidated Statements of Operations

  For the Three Months Ended For the Year Ended
  March 2, 2002 February 28, 2001 March 2, 2002 February 28, 2001
  (unaudited)    
         
Revenue $66,132 $90,079 $294,053 $221,327
Cost of sales 38,306 55,593 195,493 133,852
 
Gross margin 27,826 34,486 98,560 87,475
 
         
Expenses        
Research and development, net of government funding 12,016 7,141 37,446 18,281
Selling, marketing and administration 26,600 22,272 102,359 65,200
Amortization 5,761 3,212 17,485 8,645
 
  44,377 32,625 157,290 92,126
 
         
Income (loss) from operations (16,551) 1,861 (58,730) (4,651)
         
Investment income 4,331 11,237 25,738 22,921
 
Income (loss) before write-down of long- term investments and income taxes (12,220) 13,098 (32,992) 18,270
Write down of investments - 14,750 5,350 14,750
 
Income (loss) before income taxes (12,220) (1,652) (38,342) 3,520
Provision for (recovery of) income taxes (3,670) 4,819 (9,863) 9,731
 
Net loss $(8,550) $(6,471) $(28,479) $(6,211)
 
         
Loss per share, basic and diluted $(0.11) $(0.08) $(0.36) $(0.08)
 
Weighted average number of common shares outstanding (000's) 78,663 78,012 78,467 73,555


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

Consolidated Balance Sheets

As at March 2, 2002 February 28, 2001
     
Assets    
Current    
Cash and cash equivalents $340,476 $508,822
Marketable securities 304,083 213,105
Trade receivables 42,642 50,268
Other receivables 5,976 13,894
Inventory 37,477 68,044
Prepaid expenses and other assets 6,664 8,711
 
  737,318 862,844
     
Capital assets 151,843 87,528
Intangible assets 30,398 7,680
Future income tax assets 28,598 12,011
 
  $948,157 $970,063
 
     
Liabilities    
Current    
Accounts payable and accrued liabilities $46,934 $45,892
Income taxes payable 2,446 3,842
Deferred revenue 9,773 10,870
Current portion of long-term debt 385 198
 
  59,538 60,802
     
Long-term debt 11,874 6,328
 
  71,412 67,130
 
     
Shareholders' equity    
Capital stock 894,750 891,014
Retained earnings (deficit) (18,005) 11,919
 
Total shareholders' equity 876,745 902,933
 
  $948,157 $970,063