Research In Motion Reports Year-End and Fourth Quarter Results for Fiscal 2011

WATERLOO, ONTARIO--(Marketwire - March 24, 2011) - Research In Motion Limited (RIM) (NASDAQ:RIMM)(TSX:RIM), a world leader in the mobile communications market, today reported fourth quarter results for the three months and fiscal year ended February 26, 2011 (all figures in U.S. dollars and U.S. GAAP).

Highlights:

• Record BlackBerry® smartphone shipments of 52.3 million grew 43% over fiscal 2010
• Fiscal 2011 revenue grew 33% over fiscal 2010 to $19.9 billion and earnings per share grew 47% over the prior fiscal year to $6.34 per share diluted
• Ongoing investment in PlayBook and QNX-based platform development in Q1 with PlayBook launch date of April 19^th
• BlackBerry was the number one selling smartphone brand in the United States¹, Canada¹, Latin America¹ and the UK² for calendar 2010

Q4 and Fiscal 2011 Results:

Revenue for the fiscal year ended February 26, 2011 was $19.9 billion, up 33% from $15 billion last year. Revenue for the fourth quarter of fiscal 2011 was $5.6 billion, up 1% from $5.5 billion in the previous quarter and up 36% from $4.1 billion in the same quarter of last year. The revenue breakdown for the quarter was approximately 81% for devices, 16% for service, and 3% for software and other revenue. During the quarter, RIM shipped approximately 14.9 million BlackBerry smartphones for a total of 52.3 million smartphones in fiscal 2011.

"We are pleased to report record shipments and financial performance in fiscal 2011," said Jim Balsillie, Co-CEO at Research In Motion. "As we enter fiscal 2012, RIM is in an excellent position to benefit from the continuing convergence of the mobile communications and mobile computing markets. We are laying a strong foundation for RIM's expanding market opportunity through focused investments and we are extremely excited about our smartphone, tablet and platform roadmaps."

Net income for fiscal 2011 was $3.4 billion, or $6.34 per share diluted, up 47% over fiscal 2010. The Company's net income for the quarter was $934 million, or $1.78 per share diluted, compared with net income of $911 million, or $1.74 per share diluted, in the prior quarter and net income of $710 million, or $1.27 per share diluted, in the same quarter last year. 

The total of cash, cash equivalents, short-term and long-term investments was $2.7 billion as of February 26, 2011, compared to $2.5 billion at the end of the previous quarter, an increase of $227 million from the prior quarter. Cash flow from operations in Q4 was approximately $1.0 billion. Uses of cash included intangible asset additions of approximately $365 million, capital expenditures of approximately $304 million and business acquisitions of approximately $161 million.

FY2012 and Q1 Outlook:

For the full year fiscal 2012, RIM expects earnings per share to be in excess of $7.50 fully diluted. Revenue for the first quarter of fiscal 2012 ending May 28, 2011 is expected to be in the range of $5.2-$5.6 billion. Gross margin percentage for the first quarter is expected to be approximately 41.5%. Earnings per share for the first quarter are expected to be in the range of $1.47 -$1.55 per share diluted. This guidance range reflects a mix shift in handset towards lower ASP products in the first quarter and an increased level of investment in Research and Development and Sales and Marketing related to our tablet and platform initiatives. The guidance range is slightly wider than normal to reflect the risk of potential disruption in RIM's supply chain as a result of the recent earthquake in Japan.

Conference Call and Webcast:

A conference call and live webcast will be held beginning at 5 pm ET, March 24, 2011, which can be accessed by dialing 1-800-814-4859 (North America), 416-644-3414 (outside North America). The replay of the company's Q4 conference call can be accessed after 7 pm ET, March 24, 2011 until midnight ET, April 7, 2011. It can be accessed by dialing 416-640-1917 and entering passcode 4310316#. The conference call will also appear on the RIM website live at 5 pm ET and will be archived at http://www.rim.com/investors/events/index.shtml.

About Research In Motion (RIM)

Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry® solution in 1999. Today, BlackBerry products and services are used by millions of customers around the world to stay connected to the people and content that matter most throughout their day. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe, Asia Pacific and Latin America. 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.

This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to RIM's revenue, gross margin and earnings expectations for the first quarter of fiscal 2012, its current expectations for earnings growth for the full year of fiscal 2012, anticipated customer demand, the potential growth opportunity from the convergence of mobile communications and mobile computing markets, product initiatives and timing, and anticipated growth, opportunities relating to new products and technology. The terms and phrases "growth opportunity", "capitalize", "foundations for the future", "expect", and similar terms and phrases are intended to identify these forward-looking statements. 
Forward-looking statements are based on estimates and assumptions made by RIM in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that RIM believes are appropriate in the circumstances including but not limited to general economic conditions, product pricing levels and competitive intensity, supply constraints and new product introductions. Many factors could cause RIM's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks relating to RIM's intellectual property rights; RIM's ability to enhance current products and develop new products and services; risks related to delays in new product launches; risks related to intense competition; RIM's reliance on carrier partners, third-party manufacturers, third-party network developers and suppliers, including potential risks to RIM's supply chain for functional components caused by the recent earthquake in Japan; risks relating to network disruptions and other business interruptions; RIM's reliance on key personnel; risks related to third party manufacturers and RIM's ability to manage its production processes; risks related to RIM's international operations; security risks and risks related to encryption technology; potential defects in RIM's products; RIM's ability to manage inventory and other asset risk; RIM's ability to maintain and enhance its brand; RIM's ability to successfully enter the tablet market; RIM's ability to manage growth; and difficulties in forecasting RIM's quarterly financial results, particularly over longer periods given the rapid technological changes, evolving industry standards, intense competition and short product life cycles that characterize the wireless communications industry. 
These risk factors and others relating to RIM are discussed in greater detail in the "Risk Factors" section of RIM's Annual Information Form, which is included in its Annual Report on Form 40-F and RIM's MD&A (copies of which filings may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on RIM's forward-looking statements. RIM has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited. RIM, Research In Motion and BlackBerry are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners.

¹ IDC Worldwide Mobile Phones Quarterly Tracker - Final data - Q4 2010

² GfK RT, Smartphones, Volume Sales, 2010 and Q4 2010

Research In Motion Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions except for share and per share amounts) (unaudited)
Consolidated Statements of Operations
				For the three months ended										For the year ended
				February			November			February				February			February
				26, 2011			27, 2010			27, 2010				26, 2011			27, 2010
Revenue			$	5,556		$	5,495		$	4,080			$	19,907		$	14,953
Cost of sales				3,103			3,101			2,217				11,082			8,369
Gross margin				2,453			2,394			1,863				8,825			6,584
		Gross margin %		44.2	%		43.6	%		45.7	%			44.3	%		44.0	%
Operating expenses
	Research and development			383			357			267				1,351			965
	Selling, marketing and administration			705			666			498				2,400			1,907
	Amortization			125			115			86				438			310
	Litigation			-			-			-				-			164
				1,213			1,138			851				4,189			3,346
Income from operations				1,240			1,256			1,012				4,636			3,238
	Investment income (loss), net (1)			3			(11)			5				8			28
Income before income taxes				1,243			1,245			1,017				4,644			3,266
Provision for income taxes				309			334			307				1,233			809
Net income			$	934		$	911		$	710			$	3,411		$	2,457
Earnings per share
	Basic		$	1.79		$	1.74		$	1.27			$	6.36		$	4.35
	Diluted		$	1.78		$	1.74		$	1.27			$	6.34		$	4.31
Weighted-average number of shares outstanding (000's)
	Basic			522,764			522,436			557,114				535,986			564,492
	Diluted			524,334			524,406			561,130				538,330			569,759
Total common shares outstanding (000's)				523,869			521,776			557,328				523,869			557,328

(1)	For the three months ended November 27, 2010, investment income (loss), net reflects a charge of approximately $17 million relating to the impairment of certain investments.

Research In Motion Limited
Incorporated under the Laws of Ontario (United States dollars, in millions) (unaudited)
Consolidated Balance Sheets
			As at
			February 26,			February 27,
				2011			2010
Assets
	Current
		Cash and cash equivalents	$	1,791		$	1,551
		Short-term investments		330			361
		Accounts receivable, net		3,955			2,594
		Other receivables		324			206
		Inventories		618			660
		Other current assets		241			247
		Deferred income tax asset		229			194
				7,488			5,813
Long-term investments				577			958
Property, plant and equipment, net				2,504			1,957
Intangible assets, net				1,798			1,326
Goodwill				508			151
			$	12,875		$	10,205
Liabilities
	Current
		Accounts payable	$	832		$	615
		Accrued liabilities		2,511			1,638
		Income taxes payable		179			96
		Deferred revenue		108			68
		Deferred income tax liability		-			15
				3,630			2,432
Deferred income tax liability				276			141
Income taxes payable				31			29
				3,937			2,602
Shareholders' Equity
Capital stock and additional paid-in capital				2,359			2,372
Treasury stock				(160	)		(94	)
Retained earnings				6,749			5,274
Accumulated other comprehensive income (loss)				(10	)		51
				8,938			7,603
			$	12,875		$	10,205

Research In Motion Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions) (unaudited)
Consolidated Statements of Cash Flows
		For the year ended
			February 26	,		February 27	,
			2011			2010
Cash flows from operating activities
Net income		$	3,411		$	2,457
Adjustments to reconcile net income to net cash provided by operating activities:
	Amortization		927			616
	Deferred income taxes		92			51
	Income taxes payable		2			5
	Stock-based compensation		72			58
	Other		1			9
Net changes in working capital items			(496	)		(161	)
Net cash provided by operating activities			4,009			3,035
Cash flows from investing activities
Acquisition of long-term investments			(784	)		(863	)
Proceeds on sale or maturity of long-term investments			893			473
Acquisition of property, plant and equipment			(1,039	)		(1,009	)
Acquisition of intangible assets			(557	)		(421	)
Business acquisitions, net of cash acquired			(494	)		(143	)
Acquisition of short-term investments			(503	)		(477	)
Proceeds on sale or maturity of short-term investments			786			970
Net cash used in investing activities			(1,698	)		(1,470	)
Cash flows from financing activities
Issuance of common shares			67			30
Tax benefits (deficiencies) related to stock-based compensation			(1	)		2
Purchase of treasury stock			(76	)		(94	)
Common shares repurchased			(2,077	)		(775	)
Repayment of debt			-			(6	)
Net cash used in financing activities			(2,087	)		(843	)
Effect of foreign exchange gain (loss) on cash and cash equivalents			16			(6	)
Net increase in cash and cash equivalents for the year			240			716
Cash and cash equivalents, beginning of year			1,551			835
Cash and cash equivalents, end of year		$	1,791		$	1,551
			February 26,			November 27,
As at			2011			2010
Cash and cash equivalents		$	1,791		$	1,435
Short-term investments			330			340
Long-term investments			577			696
		$	2,698		$	2,471