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Press Release
March 6, 2003
Research In Motion Records Provision For NTP Inc. vs. RIM Litigation
Waterloo, ON - Research In Motion (RIM) (Nasdaq: RIMM; TSX: RIM) today provided an update with respect to the fourth quarter financial impact of the NTP Inc. litigation resulting from the February 28th, 2003 hearing. Following the completion of a legal and financial analysis of the Court's rulings, the Company has decided to take a provision of between $7 million and $8 million in the fourth quarter of fiscal 2003.
The Court ruled on two procedural issues at the February 28th hearing. The first ruling set the pre-judgment interest rate on damages at the prime rate. The second ruling ordered RIM to provide, for the purposes of determining potential damages, an accounting through February 28, 2003 of RIM's U.S. sales of products and services that the jury had found to infringe in its November, 2002 verdict. The Court did not rule on key post-trial motions and ordered the parties to mediation before a U.S. Magistrate Judge.
As a result of these rulings, RIM expects to record a pre-tax provision in the fourth quarter of between $7 million and $8 million. This accrual encompasses the Company's estimate for: a potential increase in damages beyond the previously announced $23 million awarded by the jury in November, 2002; the Company's estimate for pre-judgment interest at the prime rate; and an increase to RIM's current and future legal fees provision as previously recorded. This brings the estimated fiscal 2003 provision recorded to date to between $39.7 million to $40.7 million. This provision is subject to the outcome of mediation, final rulings and potential appeals.
The fourth quarter provision excludes any allowance for plaintiff's attorney's fees and any other potential damages or other awards resulting from motions upon which the Court has not yet ruled.
Other than the accrual described above, the Company has not altered its guidance for the fourth quarter of fiscal 2003. RIM is scheduled to report its fiscal fourth quarter and year end results after the market close on April 3, 2003.
The litigation between NTP Inc. and RIM remains before the Court. Further comment and details were not disclosed.
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™ wireless platform, the RIM Wireless Handheld™ 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.
The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties of Research In Motion Limited. 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. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, risks relating to possible product defects and product liability, risks related to international sales and potential foreign currency exchange fluctuations, continued acceptance of RIM's products, increased levels of competition, technological changes, dependence on intellectual property rights and other risks detailed from time to time in RIM's periodic reports filed with the United States Securities and Exchange Commission and other regulatory authorities.

