Device Arena

Research In Motion Limited (RIM) reported second quarter results for the three months ended September 1, 2007 (all figures in U.S. dollars and U.S. GAAP).

Revenue for the second quarter of fiscal 2008 was $1.37 billion, up 27% from $1.08 billion in the previous quarter and up 108% from $658.5 million in the same quarter of last year. The revenue breakdown for the quarter was approximately 78% for devices, 15% for service, 4% for software and 3% for other revenue. Approximately 1.45 million BlackBerry® subscriber accounts were added in the quarter and over 3 million devices were shipped. The total BlackBerry subscriber account base at the end of the second quarter was approximately 10.5 million.

“RIM’s second quarter results were exceptionally strong on all metrics including revenue, subscriber account additions and net income,” said Jim Balsillie, Co-CEO at RIM. “This growth is fueled by the depth of the BlackBerry product portfolio and the continued diversification of our business across market segments and geographies. With over ten million BlackBerry subscriber accounts and over twenty million handsets shipped, we are pleased with our position in the market today and we expect recent product and market initiatives to extend our business momentum through the remainder of the fiscal year.“

Income for the quarter was $287.7 million, or $0.50 per share diluted, compared with net income of $223.2 million, or $0.39 per share diluted, in the prior quarter and net income of $140.2 million, or $0.25 per share diluted, in the same quarter last year. Please note that the earnings per share reflect the effective 3-for-1 stock split that was implemented in the quarter.

Revenue for the third quarter of fiscal 2008 ending December 1, 2007 is expected to be in the range of $1.60-1.67 billion. Subscriber account additions in the third quarter are expected to be approximately 1.65 million. Earnings per share for the third quarter are expected to be in the range of $0.59-0.63 per share diluted.

The total of cash, cash equivalents, short-term and long-term investments was $1.73 billion as at September 1, 2007, compared to $1.56 billion at the end of the previous quarter, an increase of $166 million over the prior quarter. Uses of cash in the quarter included capital expenditures of approximately $79 million.

Highlights of the Second Quarter Include:

NTT DoCoMo, Inc. and its eight regional subsidiaries announced that subscribers to DoCoMo’s 3G FOMA™ service surpassed 40 million on September 29, 2007, 11 months after topping 30 million in November 2006 and six years since the service’s launch in October 2001.

FOMA has led all domestic 3G services in net subscription growth for 41 consecutive months, between April 2004 and August 2007, according to the most recent data compiled by the Telecommunications Carriers Association, a 90-member industry organization in Japan.

DoCoMo, the world’s largest operator of 3G mobile service based on W-CDMA technology, attributes the strong popularity of its 3G high-speed, large-capacity data transmission service to a wide variety of discounts, such as “Pake-hodai” and “Pake-hodai Full” flat-rate data-communication billing plans, diverse content and services, such as “Deco-mail™” e-mails decorated with pictograms and other formatting and intuitive-motion “Chokkan Games”, as well as FOMA’s large lineup of handsets, broad coverage area and high-quality calls.

DoCoMo is tirelessly enhancing FOMA by introducing advanced handsets, competitive billing plans and services that truly satisfy subscriber needs. The effort includes plans to make HSDPA service, which provides significantly faster speeds than the conventional 3G FOMA service, available to 90 percent of the domestic population.