With expectations at an all-time low and analysts lowering estimates left and right, Research In Motion on Thursday reported its results for the fourth fiscal quarter of 2012. RIM posted a surprising beat in the third fiscal quarter when it managed earnings of $1.27 per share on $5.2 billion in sales. At the same time, however, the Waterloo, Ontario-based BlackBerry maker issued worse than expected fourth-quarter EPS guidance of between $0.80 and $0.95, and it said revenue would likely fall between $4.6 billion and $4.98 billion. RIM has now confirmed adjusted net income of $0.80 per share, on revenue of $4.2 billion, down sequentially from $5.2 billion despite the launch of multiple new BlackBerry 7 smartphone models. Read on for more.

RIM said it shipped 11.1 million BlackBerry smartphones and more than 500,000 PlayBook tablets last quarter. Smartphone shipments came in at the low end of its forecast of between 11 million and 12 million units. Wall Street was expecting earnings of $0.81 per share and $4.54 billion in revenue. In the fourth fiscal quarter of 2011, RIM posted a profit of $710 million, or $1.27 per share, on $4.08 billion in sales.

The company confirmed that RIM co-founder Jim Balsillie will step down as director and leave the company.

RIM also confirmed during its earnings call that multiple top executives, chief technology officer David Yach and chief operating officer Jim Rowan, will leave the company.

The struggling smartphone vendor said it is facing significant challenges, and it is currently reviewing strategic opportunities and potential partnerships. The company also said that it will dial back efforts in multiple consumer markets and refocus its efforts on the enterprise market.

RIM confirmed that its first BlackBerry 10 smartphone is on track to launch in late 2012.

“The next few quarters will continue to be challenging for our business,” RIM CEO Thorsten Heins said during the company’s earnings call. Heins confirmed that RIM would consider licensing its platform and services to partners, and it would also consider an outright sale if its current efforts to not improve the company’s sliding position.

RIM’s full press release follows below.

Research In Motion Reports Year-End and Fourth Quarter Results for Fiscal 2012 

WATERLOO, ONTARIO–(Marketwire – March 29, 2012) - 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 March 3, 2012 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Highlights:

• $2.1 billion in cash, cash equivalents, short-term and long-term investments at the end of the quarter, which increased by approximately $610 million in the quarter
• Cash flow from operations of approximately $1.1 billion, up from approximately $900 million in Q3
• Revenue of $4.2 billion, down 19% from the third quarter
• GAAP net loss in Q4 of $125 million or $0.24 per share diluted; adjusted net income of $418 million or $0.80 per share diluted
• BlackBerry smartphone shipments of 11.1 million in Q4, down 21% from Q3
• RIM to discontinue providing specific quantitative guidance
• RIM provides update on organizational changes

Q4 Results:

Revenue for the fourth quarter of fiscal 2012 was $4.2 billion, down 19% from $5.2 billion in the previous quarter and down 25% from $5.6 billion in the same quarter of fiscal 2011. The revenue breakdown for the quarter was approximately 68% for hardware, 27% for service and 5% for software and other revenue. During the quarter, RIM shipped approximately 11.1 million BlackBerry smartphones and over 500,000 BlackBerry PlayBook tablets.

“I have assessed many aspects of RIM’s business during my first 10 weeks as CEO. I have confirmed that the Company has substantial strengths that can be further leveraged to improve our financial performance, including RIM’s global network infrastructure, a strong enterprise offering and a large and growing base of more than 77 million subscribers. I’m very excited about the prospects for the BlackBerry 10 platform, which is on track for the latter part of calendar 2012. Notwithstanding these strengths and opportunities, the business challenges we face over the next several quarters are significant and I am taking the necessary steps to address them,” said Thorsten Heins, President & CEO of Research In Motion. “In addition to delivering the BlackBerry 10 platform and refocusing resources on RIM’s key opportunities, such as BlackBerry Mobile Fusion and new integrated service offerings, we will also drive greater operational performance through a variety of initiatives including increased management accountability and process discipline. In parallel, we are undertaking a comprehensive review of strategic opportunities including partnerships and joint ventures, licensing, and other ways to leverage RIM’s assets and maximize value for our stakeholders.”

The Company’s GAAP net loss for the fourth quarter of fiscal 2012 was $125 million, or $0.24 per share diluted, compared with GAAP net income of $265 million, or $0.51 per share diluted, in the prior quarter and GAAP net income of $934 million, or $1.78 per share diluted, in the same quarter of fiscal 2011. Adjusted net income for the fourth quarter was $418 million, or $0.80 per share diluted. Adjusted net income and adjusted diluted earnings per share for the fourth quarter exclude the impact of pre-tax charges of $355 million which are predominantly non-cash ($346 million after tax) for the impairment of goodwill and $267 million ($197 million after-tax) for an inventory provision taken primarily on certain BlackBerry7 products. These charges and their related impacts on GAAP net income and diluted earnings per share are summarized in the tables below.

Reconciliation of GAAP gross margin, gross margin percentage, net income and diluted EPS to adjusted gross margin, gross margin percentage, net income and diluted EPS:

(United States dollars, in millions except per share data)

	For the quarter ended March 3, 2012
	Gross Margin(1) (before taxes)		Gross Margin %(1)(before taxes)		Net Income or (Loss)			Diluted EPS
As reported	$	1,401	33.4	%	$	(125	)		(0.24	)
Adjustments:
Impairment of Goodwill(2)		-	-			346			0.66
Inventory Provision(3)		267	6.4	%		197			0.38
Adjusted	$	1,668	39.8	%	$	418		$	0.80

Note: Adjusted gross margin, adjusted net income and adjusted diluted earnings per share do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of adjusted gross margin, adjusted gross margin percentage, adjusted net income and adjusted diluted earnings per share enables the Company and its shareholders to better assess RIM’s operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of RIM’s GAAP results.

(1) During the fourth quarter of fiscal 2012, the Company reported GAAP gross margin of $1.4 billion or 33.4% of revenue. Excluding the impact of charges primarily related to inventory valuation of certain BlackBerry 7 products, the adjusted gross margin was $1.7 billion, or 39.8% of revenue.

(2) Subsequent to the fourth quarter of fiscal 2012, the Company performed a goodwill impairment test and based on the results of that test, the Company recorded a non-cash pre-tax goodwill impairment charge of $355 million, $346 million after tax.

(3) During the fourth quarter of fiscal 2012, the Company recorded a pre-tax provision of approximately $267 million, $197 million after tax, which was mostly non-cash, primarily related to its inventory valuation of certain BlackBerry 7 products.

The total of cash, cash equivalents, short-term and long-term investments was $2.1 billion as of March 3, 2012, compared to $1.5 billion at the end of the previous quarter, an increase of approximately $610 million from the prior quarter. Cash flow from operations in Q4 was approximately $1.1 billion, up from $900 million in Q3. Uses of cash included intangible asset additions of approximately $260 million and capital expenditures of approximately $190 million.

Fiscal 2012 Results

Revenue for the fiscal year ended March 3, 2012 was $18.4 billion, down 7% from $19.9 billion in fiscal 2011. The Company’s GAAP net income for fiscal 2012 was $1.2 billion, or $2.22 per share diluted, compared with GAAP net income of $3.4 billion, or $6.34 per share diluted in fiscal 2011. Adjusted net income for fiscal 2012 was $2.2 billion, or $4.20 per share diluted. Adjusted net income and adjusted diluted earnings per share for fiscal 2012 exclude the adjustments described above as well as the impact of pre-tax charges of $54 million ($40 million after tax) to revenue related to the service interruption experienced in the third quarter, $485 million ($356 million after tax) for the PlayBook inventory provision taken in the third quarter and $125 million ($96 million after tax) for the Company’s cost optimization program that was implemented in the second quarter of fiscal 2012. These charges and their related impacts on GAAP net income and diluted earnings per share are summarized in the tables below.

Reconciliation of GAAP revenue, gross margin, gross margin percentage, net income and diluted EPS to adjusted revenue, gross margin, gross margin percentage, net income, and diluted EPS:

(United States dollars, in millions except per share data)

	For the year ended March 3, 2012
	Revenue (before taxes)		Gross Margin(1)(before taxes)		Gross Margin%(1)(before taxes)		Net Income		Diluted EPS
As reported	$	18,435	$	6,579	35.7	%	$	1,164	$	2.22
Adjustments:
PlayBook Inventory Provision(2)		-		485	2.6	%		356		0.68
Cost Optimization Program(3)		-		14	-			96		0.18
Q3 Service Interruption(4)		54		54	0.3	%		40		0.08
Impairment of Goodwill(5)		-		-	-			346		0.66
Inventory Provision(6)		19		267	1.4	%		197		0.38
Adjusted	$	18,508	$	7,399	40.0	%	$	2,199	$	4.20

Note: Adjusted revenue, adjusted gross margin, adjusted gross margin percentage, adjusted net income and adjusted diluted earnings per share do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of adjusted revenue, adjusted gross margin, adjusted gross margin percentage, adjusted net income and adjusted diluted earnings per share enables the Company and its shareholders to better assess RIM’s operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of RIM’s GAAP results.

(1) During fiscal 2012, the Company reported GAAP gross margin of $6.6 billion, or 35.7% of revenue. Excluding the impact of charges related to the PlayBook Inventory Provision, the Cost Optimization Program, the Q3 Service Interruption and the Inventory Provision, the adjusted gross margin was $7.4 billion, or 40.0% of revenue.

(2) During fiscal 2012, the Company recorded a pre-tax provision of approximately $485 million, $356 million after tax, related to its inventory valuation of BlackBerry PlayBook tablets. The charge was predominantly non-cash.

(3) Cost of sales, research and development, and selling, marketing and administration expenses in fiscal 2012 included approximately $11 million, $18 million, and $67 million, respectively, in after-tax charges related to the cost optimization program to streamline operations across the Company.

(4) During fiscal 2012, the Company experienced a service interruption which resulted in the loss of service revenue and the payment of service credits totally approximately $54 million, approximately $40 million after tax, related to the interruption in the availability of the Company’s network.

(5) Subsequent to fiscal 2012, the Company performed a goodwill impairment test and based on the results of that test, the Company recorded a non-cash pre-tax goodwill impairment charge of approximately $355 million, approximately $346 after tax.

(6) In the fourth quarter of fiscal 2012, the Company recorded a pre-tax provision of approximately $267 million, $197 million after tax, which was mostly non-cash, primarily related to its inventory valuation of certain BlackBerry 7 products.

Change to Guidance Practices and Outlook:

The company expects continued pressure on revenue and earnings throughout fiscal 2013. Due to a desire to focus on long term value creation and the current business environment, RIM will no longer provide specific quantitative guidance. Some of the factors contributing to this include, ongoing weakness in the Company’s U.S. smartphone business, an increased focus on selling BlackBerry 7 smartphones to grow the subscriber base in advance of the BlackBerry 10 launch, increasing competitive pressure in the Company’s international markets and the introduction of certain new lower tier service pricing initiatives and a higher mix of sales coming from entry level products.

Organizational and Board of Directors Update:

Jim Balsillie, former Co-CEO of the Company, has resigned as a Director on the Company’s Board.

“As I complete my retirement from RIM, I’m grateful for this remarkable experience and for the opportunity to have worked with outstanding professionals who helped turn a Canadian idea into a global success,” said Jim Balsillie.

“On behalf of the Board and everyone at RIM, I would like to thank Jim for his 20 years of service to RIM,” said Barb Stymiest, Chair of RIM’s Board of Directors. “His energy, drive and enthusiasm helped build one of the most successful technology companies of our time.”

In addition, David Yach will be retiring from his role as CTO, Software after 13 years with the Company and after 4 years with the company and following an open dialogue on the future of global operations, Jim Rowan, COO, Global Operations, has decided to pursue other interests. The Company is currently undertaking a search to hire a single COO with responsibilities to run the Company’s operations.

“RIM would like to thank David Yach and Jim Rowan for their years of service and many contributions to RIM,” said Thorsten Heins, President and CEO. “We wish them well in their future pursuits.”

A 50% discount on the just-launched BlackBerry Bold 9790 had mall shoppers in a frenzy in Jakarta, Indonesia on Friday. Reportedly, as many as 90 people were injured after shoppers fell out of line and into a disorderly crowd when word came out that the retailer selling the device wouldn’t have enough units to satisfy demand. Three people needed to be hospitalized for broken bones and more than 200 police officers and mall security officials were required to restore peace. According to The Jakarta Globa, the BlackBerry Bold 9790 typically retails for Rp 4.6 million in Indonesia ($520) and BlackBerry is the top brand in the region; four of the top five selling smartphones in the Indonesia right now are BlackBerry devices. A video of the massive crowd that gathered for the 9790 launch follows below.

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Three torches, two form factors, one goal: silence the critics. Research In Motion on Wednesday unveiled three new additions to the popular Torch family, the Torch 9810, the Torch 9850 and the Torch 9860. The latter two handsets are GSM and CDMA variants of the same device, a full touchscreen smartphone that hopes to pick up where the Storm series left off. Launching later this month with AT&T, the Torch 9810 is a touchscreen smartphone with a QWERTY slider that one-ups the original Torch in nearly every area. Both phones carry the new BlackBerry 7 operating system — no, not QNX, we’re afraid — on top of big, bright displays and solid hardware. RIM noted that in combination with the already-announced Bold 9900, these smartphones will launch on more than 225 carriers around the world. “This is the largest global launch of BlackBerry smartphones in our history,” said RIM Co-CEO Mike Lazaridis in a statement. “The BlackBerry solution offers a best-in-class mobile communications experience that customers love and we think they will be thrilled by the faster performance, enhanced browsing and richer multimedia delivered by these powerful new BlackBerry Bold and BlackBerry Torch smartphones.” The new Torches and the Bold 9900 will begin rolling out later this month. RIM’s full press release follows below.

Research In Motion Introduces New BlackBerry 7 Smartphones

Largest Global Launch of BlackBerry Smartphones Ever With More Than 225 Partners Around the World

Waterloo, ON – Research In Motion (RIM) (NASDAQ: RIMM; TSX: RIM) today announced plans to launch 5 new BlackBerry® smartphones based on the BlackBerry® 7 Operating System (OS).  RIM, in conjunction with carriers and distribution partners around the world, is rolling out two new BlackBerry® Bold™ models and three new BlackBerry® Torch™ models, all running the powerful new BlackBerry® 7 OS.

The launch of this family of handsets will be RIM’s largest global launch ever and more than 225 carriers and distribution partners have already commenced or completed over 500 certification programs for these 5 new handsets.

Featuring RIM’s next generation of hardware and software platforms, these five new BlackBerry 7 based smartphones offer users a variety of designs to choose from and deliver the ultimate in communications, multimedia and productivity.

The new BlackBerry® Bold™ 9900 and 9930 are RIM’s thinnest smartphones ever, each offering a large keyboard and brilliant touch display. The new BlackBerry® Torch™ 9810 smartphone builds on the popularity of the BlackBerry® Torch™ 9800 and combines a large touch display with a convenient slide-out keyboard. The BlackBerry® Torch™ 9850 and 9860 introduce an all-new, all-touch design featuring the largest display on a BlackBerry® smartphone to date.

“This is the largest global launch of BlackBerry smartphones in our history,” said Mike Lazaridis, President and Co-CEO of Research In Motion. “The BlackBerry solution offers a best-in-class mobile communications experience that customers love and we think they will be thrilled by the faster performance, enhanced browsing and richer multimedia delivered by these powerful new BlackBerry Bold and BlackBerry Torch smartphones.”

Next-Generation BlackBerry 7 OS
BlackBerry 7 introduces a next generation BlackBerry browser with a significantly faster, more fluid web browsing experience that is among the best in the industry. Combining the dramatically improved performance of the advanced WebKit browser engine together with the powerful hardware enhancements found in the BlackBerry 7 based smartphones delivers browsing  results that are up to 40% faster than BlackBerry® 6 based smartphones and up to 100% faster than BlackBerry® 5 based smartphones*.  Additional enhancements to this next generation BlackBerry browser have also optimized zooming and panning for smoother web navigation and optimized HTML5 performance for incredible gaming and video experiences.

RIM’s new BlackBerry 7 based smartphones also feature Liquid GraphicsTM technology, with each smartphone combining a dedicated high-performance graphics processor with a blazingly fast CPU and stunning high resolution display to deliver a highly responsive touch interface with incredibly fast and smooth graphics.

In addition, BlackBerry 7 based smartphones continue the tradition of delivering the world’s best mobile communications experience with a highly refined and integrated suite of phone, email, messaging and social apps to keep users connected and productive throughout the day. Recent enhancements include the newest release of BBM™ (BlackBerry® Messenger) which now extends the real time BBM experience to a range of other apps (see separate announcement on July 28, 2011). The updated Social Feeds (2.0) app has been extended to capture updates from media, podcasts, and favorites all in one consolidated view. The new Facebook® for BlackBerry smartphones (2.0) app introduces features like Facebook chat and BBM integration that makes it easier for users to connect with their Facebook friends in real time.

BlackBerry 7 OS also includes a number of other pre-loaded applications and integrated functionality for increased productivity and collaboration right out of the box. The Premium version of Documents To Go is now included free of charge, offering users powerful document editing features as well as a native PDF document viewer. BlackBerry® Protect is also pre-loaded**, offering customers the peace of mind that personal data can be backed up and secured in the cloud.  BlackBerry® Balance (announced May 2, 2011) is now integrated in BlackBerry 7, allowing users to enjoy the full BlackBerry smartphone experience for both work and personal purposes without compromising the IT department’s need for advanced security and IT controls. And further, the popular universal search capability has been enhanced with support for voice-activated search, so users can now simply speak to begin searching their device and the web for information.

A New Performance Driven Platform
RIM’s line up of next generation BlackBerry smartphones are built on a new performance driven platform powered by the latest BlackBerry software and hardware. In addition to supporting the new BlackBerry 7 OS, each smartphone also features a range of powerful hardware enhancements including a 1.2 GHz processor, HD video recording, 24-bit high resolution graphics, and advanced sensors enabling new augmented reality applications such as Wikitude that can be seamlessly integrated with BBM 6 – all designed to deliver the ultimate in communications, multimedia and productivity for users around the world.

BlackBerry Bold 9900 and 9930 Smartphones with Touch Display and Keyboard
The BlackBerry Bold 9900 series is the thinnest BlackBerry smartphone yet (at only 10.5mm) and the first to offer the perfect union of a high performance keyboard and touch display integrated within the iconic BlackBerry Bold design. The new BlackBerry Bold 9900 and 9930 are also the first BlackBerry smartphones to include built-in support for NFC (Near Field Communications), a new technology that is  enabling many new and exciting capabilities, including the ability to pair accessories or read SmartPoster tags with a simple tap of the smartphone. Distinguished by its beautiful design, amazingly effective keyboard and brilliant touch display, the BlackBerry Bold 9900 series is crafted with premium materials including a brushed stainless steel frame that puts the finishing touch on a truly outstanding smartphone.

BlackBerry Torch 9810 Smartphone with Touch Display and Slide-Out Keyboard
Building on the popular design of the BlackBerry Torch 9800, the new BlackBerry Torch 9810 is faster and more fluid with high performance hardware features and the new BlackBerry 7 OS delivering an enhanced multimedia experience. Featuring a large 3.2”, high resolution touch display and a distinctive BlackBerry keyboard that easily slides out to allow faster typing, the BlackBerry Torch 9810 truly delivers the best of both worlds.

All-Touch BlackBerry Torch 9850 and 9860 Smartphones
The BlackBerry Torch 9850 and 9860 smartphones offer the fast, fluid BlackBerry 7 experience in a stylish new all-touch design. With a spectacular new 3.7” display, the largest ever on a BlackBerry smartphone, the new all-touch BlackBerry Torch 9850 and 9860 smartphones are optimized for displaying web pages, photos, videos, and powerful gaming experiences and still deliver the real-time communication and collaboration experience loved by millions of BlackBerry smartphone users around the world.

Availability
The next generation of BlackBerry smartphones will begin to be available from carriers around the world starting later this month. Availability dates for specific devices from specific carriers will be announced in conjunction with RIM’s partners.

RIM officially revealed the BlackBerry Bold 9900 earlier this year during its annual BlackBerry World tradeshow and now it appears carriers are finally preparing to launch the phone. PhoneArena has obtained a leaked internal T-Mobile screenshot that suggests the phone will become available on August 31st. It also mentions that there will be a $50 mail-in rebate but does not confirm the subsidized price of the Bold 9900. BlackBerry fans will appreciate the device’s thinner design, more powerful hardware, and revamped BlackBerry 7 operating system, but this device doesn’t stray far from those that came before it. We expect we’ll hear more of a confirmation on its official launch date in the coming weeks.

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In a note to investors Friday morning, RBC Capital Markets Managing Director Mike Abramsky lowered his target on shares of RIM stock from $45 to $35 with a Sector Perform rating. Following yesterday’s bloodbath, shares of RIM stock plummeted by as much as 19% after-hours on concerns surrounding RIM’s second-quarter and full-year outlook. The Waterloo, Ontario-based company slashed its full-year EPS outlook from $7.50 to between $5 and $6.50, and it said second-quarter earnings could be as low as $0.75 per share. Abramsky remains cautiously optimistic, however. “Disappointing Q1 results validates prior execution concerns amidst competitive pressures,” he writes. “Although it’s possible RIM fails to turn itself around, that outcome may be premature, we believe, given sustained positives.” The analyst notes 16% year-over-year growth, 68 million total subscribers, service growth and enterprise leadership among the yesterday’s bright spots, and says RIM’s strategy with QNX, TAT-built user interfaces and Android app support “remains sound.” He adds that the impact of BlackBerry 7 devices this fall and then QNX-based handsets, which are expected in the first quarter of 2012, could make RIM an “attractive acquisition candidate.”

Research In Motion on Thursday reported earnings for the first quarter of fiscal 2012. After cutting its first-quarter outlook at the end of April, RIM’s May quarter came in below analyst estimates. First quarter revenue came in at $4.9 billion versus the Street’s estimate of $5.5 billion, and device shipments totalled 13.2 million versus expectations of 13.5 million. Net income for the quarter was $695 million, down from $769 million in the same quarter a year earlier. Earnings per share in the first quarter beat estimates by a penny at $1.33. RIM’s revenue for the quarter breaks down as 78% hardware, 20% service, and 2% software and other revenue. In the second quarter, RIM trimmed its outlook to $4.2-$4.5 billion in revenue, significantly under the Street’s consensus of $5.46 billion. RIM’s second-quarter EPS forecast is just $0.75-$1.05 versus $1.40 consensus. For the full year, RIM cut its EPS outlook from $7.50 to between $5.25 and $6 per share. “Fiscal 2012 has gotten off to a challenging start,” RIM Co-CEO Jim Balsillie said in a statement. “The slowdown we saw in the first quarter is continuing into Q2, and delays in new product introductions into the very late part of August is leading to a lower than expected outlook in the second quarter.” RIM also said it would soon begin a “program to streamline operations” that will involve job cuts. Shares of RIM stock opened down 15% in after-hours trading. RIM’s full press release follows below.

RESEARCH IN MOTION REPORTS FIRST QUARTER FISCAL 2012 RESULTS AND REVISES FULL YEAR GUIDANCE

ANNOUNCES PLANS TO STREAMLINE OPERATIONS AND ACCELERATE NEW PRODUCT INTRODUCTIONS

BOARD OF DIRECTORS APPROVES SHARE REPURCHASE PROGRAM

Waterloo, ON – Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM), a world leader in the mobile communications market, today reported first quarter results for the three months ended May 28, 2011 (all figures in U.S. dollars and U.S. GAAP).

Highlights: • Revenue in the first quarter of fiscal 2012 grew 16% over the same quarter last year • International revenue1 in Q1 grew 67% year over year • Gross margin in the quarter was approximately 44%, slightly higher than expected due to product mix • RIM launched the BlackBerry PlayBook tablet in North America and shipped approximately 500,000 units in the first quarter

Q1 Fiscal 2012 Results:

Revenue for the first quarter of fiscal 2012 was $4.9 billion, down 12% from $5.6 billion in the previous quarter and up 16% from $4.2 billion in the same quarter of last year. The revenue breakdown for the quarter was approximately 78% for hardware revenue, 20% for service and 2% for software and other revenue. During the quarter, RIM shipped approximately 13.2 million BlackBerry handheld devices and approximately 500,000 BlackBerry Playbook tablets.

“Fiscal 2012 has gotten off to a challenging start. The slowdown we saw in the first quarter is continuing into Q2, and delays in new product introductions into the very late part of August is leading to a lower than expected outlook in the second quarter.” said Jim Balsillie, Co-CEO at Research In Motion. “RIM’s business is profitable and remains solid overall with growing market share in numerous markets around the world and a strong balance sheet with almost $3 billion in cash. We believe that with the new products scheduled for launch in the next few months and realigning our cost structure, RIM will see strong profit growth in the latter part of fiscal 2012.”

Net income for the quarter was $695 million, or $1.33 per share diluted, compared with net income of $934 million, or $1.78 per share diluted, in the prior quarter and net income of $769 million, or $1.38 per share diluted, in the same quarter last year.

The total of cash, cash equivalents, short-term and long-term investments was $2.9 billion as of May 28, 2011, compared to $2.7 billion at the end of the previous quarter, an increase of approximately $170 million from the prior quarter. Cash flow from operations in Q1 was approximately $1 billion. Uses of

1 Includes revenue outside of the U.S. and Canada

June 16, 2011cash included intangible asset additions of approximately $560 million, capital expenditures of approximately $220 million and business acquisitions of approximately $30 million.

Cost Optimization Program:

The company also announced that it will begin a program to streamline operations across the organization, which will include a headcount reduction. This realignment will be focused on taking out redundancies and a reallocation of resources to allow us to focus on the areas that offer the highest growth opportunities and align with RIM strategic objectives, such as accelerating new product introductions. We expect to implement this program beginning in the second quarter with the benefits impacting results primarily in Q3 and beyond. Any one-time charges associated with this initiative are not included in our Q2 and full year outlook but will be identified and disclosed when we report our second quarter results.

Share Repurchase Program:

RIM’s Board of Directors today also approved a share repurchase program to purchase for cancellation through the facilities of the NASDAQ Stock Market (NASDAQ) or by way of private agreement up to 5% of RIM’s outstanding common shares. The share repurchase program may commence after July 10, 2011 and will remain in place for up to 12 months or until the purchases are completed or the program is terminated by RIM.

The price that RIM will pay for any shares purchased over NASDAQ will be the prevailing market price at the time of purchase. The share repurchase program will be effected in accordance with Rule 10b-18 under the U.S. Securities Exchange Act of 1934, which contains restrictions on the number of shares that may be purchased on a single day, subject to certain exceptions for block purchases, based on the average daily trading volumes of RIM’s shares on NASDAQ. Any purchases made by way of private agreement may be at a discount to the prevailing market price at the time of purchase, and would be subject to regulatory approval.

RIM’s Board of Directors believes that a share repurchase program at this time is in the best interests of RIM and its shareholders, and will not impact RIM’s ability to execute its growth plans. Any shares purchased under the program will increase the proportionate interest of, and may be advantageous to, all remaining shareholders of RIM.

The actual number of shares purchased, the timing of purchases, and the price at which the shares would be bought under the share repurchase program will depend on future market conditions and upon potential alternative uses for cash resources. There is no assurance that any shares will be purchased under the share repurchase program and RIM may elect to suspend or discontinue the program at any time.

Q2 and Full Year 2012 Outlook:

Revenue for the second quarter of fiscal 2012 ending August 27, 2011 is expected to be in the range of $4.2-$4.8 billion. Gross margin percentage for the second quarter is expected to be approximately 39%. Earnings per share for the second quarter are expected to be $0.75-$1.05 diluted, excluding any one-time charges. Earnings per share for the full year fiscal 2012 are now expected to be between $5.25-$6.00 diluted, excluding any one-time charges or share repurchases.

During the BlackBerry World Keynote in Orlando this morning, Research In Motion announced that it is working with foursquare to include support for the social-network in an upcoming version of BlackBerry Messenger. Users will be able to share their location information as their BBM status, but RIM execs didn’t go into much detail on how check-ins will work or just how feature rich the implementation will be. The native foursquare client, for example, allows users to find nearby deals, compete with friends for check-in points, and more. RIM did not say when the client would make its debut, although we suspect it will be around the launch of its BlackBerry 7 powered Bold 9900, which will occur later this summer.

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We’re here in Orlando at RIM’s BlackBerry World developer event and have scored some more hands-on time with the recently announced BlackBerry Bold 9900/9930… and we’re pretty impressed with what we see so far. The Bold 9900 felt light in the hand, but definitely had a premium feel thanks to its thin form factor and metal accents around the body — it’s also the thinnest BlackBerry to date. The new BlackBerry 7 operating system was very snappy and we didn’t experience any lag when bouncing around the new OS, likely thanks to the 1.2GHz processor under its hood. The keyboard reminds us a lot of the original BlackBerry Bold 9000, and the form factor is more akin to that phone than the handset it is replacing, the 9700. The industrial design of the phone is solid, but we do wish RIM would venture away from a form factor that’s feeling pretty stale. We’ll need to spend more time with BlackBerry 7, but superficially it looks nearly identical to BlackBerry 6 — which could be a positive or negative depending on your viewpoint. We’re excited to see what RIM does with the built-in NFC technology, and the faster processor should definitely open the flood gates to more robust applications in the future. We’ve assembled a gallery of photos for your scrutiny. Have a look and let us know what you think of RIM’s latest creation.

Shares of Research in Motion stock declined over 12% after hours on Thursday as the company reported its fourth-quarter earnings for its 2011 fiscal year. RIM reported revenue that missed Wall Street’s consensus on device shipments that exceeded expectations by 200,000 units. Fourth-quarter revenue came in at $5.6 billion, just below the $5.64 billion analysts expected. Device shipments for the quarter totalled 14.9 million units, beating estimates of 14.7 million units, and full-year shipments were a record 52.3 million units — a 43% improvement over the year prior. Full-year revenue of $19.9 billion grew 33% over the 2010 fiscal year and net income was up 47% year-over-year to $3.4 billion. “We are pleased to report record shipments and financial performance in fiscal 2011,” said RIM’s Co-CEO Jim Balsillie in a statement. “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.” Hit the break for the full press release.

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

WATERLOO, ONTARIO–(Marketwire – 03/24/11) – Research In Motion Limited (RIM) (NASDAQ:RIMM - News)(TSX:RIM - News), 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 19th
--  BlackBerry was the number one selling smartphone brand in the United
    States(1), Canada(1), Latin America(1) and the UK(2) 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.

Verizon Wireless on Tuesday made RIM’s latest BlackBerry operating system available for the BlackBerry Bold 9650 and BlackBerry Curve 3G smartphones. BlackBerry 6 is now available for both devices and will be pushed to customers as an over-the-air update beginning Tuesday evening at 8:00PM Eastern Time. Customers may also update their smartphones using the BlackBerry Desktop Manager software. Updates compared to version 5 of the BlackBerry OS include a redesigned UI, universal search functionality and RIM’s highly anticipated HTML-capable browser.

[Via Phone Scoop]

Read [BlackBerry Bold] Read [BlackBerry Curve 3G]

AmazonWireless announced Thursday that all AT&T phones on its website are now on sale. The popular online retailer is offering smartphones and feature phones from AT&T for as little as 1¢. The sale even includes just-released Windows Phone 7-powered smartphones from AT&T, like the HTC Surround. Here are some highlights:

•BlackBerry Torch: 1¢
•HTC Surround: 1¢
•LG Quantum: 1¢
•Motorola BACKFLIP: 1¢
•Motorola BRAVO: 1¢
•Motorola CHARM: 1¢
•Motorola FLIPOUT: 1¢
•Motorola FLIPSIDE: 1¢
•Palm Pixi Plus: 1¢
•Palm Pre Plus: 1¢
•Samsung Captivate: 1¢

The sale will run from Thursday through Monday, November 15th, and sale prices require two-year agreements. During the sale period, Amazon Prime members will also have their activations fees waived.

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It looks like four bands of HSPA is too much for a BlackBerry to handle as Japanese carrier DoCoMo has suspended all sales of the Bold due to overheating issues. Since its February 20th launch, DoCoMo has sold approximately 4,000 Bolds but after receiving more than 30 complaints about overheating keypads while charging, DoCoMo decided it was best to halt sales while RIM investigates the matter. RIM is being quite tight-lipped on the matter and would only comment with, “This issue appears to be specifically limited to the BlackBerry Bold devices sold in Japan since last week and sales of BlackBerry Bold devices in other countries are unaffected by this matter.” RIM went on to clarify that faulty batteries are not to blame. For those of you scoring at home, this brings the number of carriers that have suspended sales of the Bold up to two thus far. Anyone taking bets on who might be the third?

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Yeah, yeah, we’re a little late on this one, but what can we say? We’re in love. For anyone that gets a kick out of remote viewing, this little thing is bound to mess up your head. You probably know all about it by now, but it’s a fully mobile 3-wheeled robot that houses a webcam, speaker, mic, and more. It effectively let’s you roam to any part of your office or home while streaming the video for your live, anywhere you are. Want to check up on that shady maid you found on Craigslist? Maybe you want to make sure the Time Warner guys aren’t playing Madden ’09 in your TV room but actually working. Either way, this thing lets you be there when you’re not, and that’s pretty damn cool.

The packaging is a standard affair with the actual unit, battery, A/C adapter, USB cable, software CD, and charging base all included. Rovio is decently heavy and at first handle, it looks to be extremely well manufactured. Setup is dead simple, too. If you’re on a PC, just insert the setup CD and it will run through the configuration options. If you’re on a Mac, you can simply set it up by accessing the robot through a web interface. When controlling it remotely, you’ve got a lot of options including creating a path for the robot to follow, snapping pictures, recording movies, talking and listening to the surroundings, and even sending that little bugger back to its charging base. We’re happy to report that browser compatibility is not an issue here. On Internet Explorer you get the most options when remote viewing, but you can also work it reasonably well over an iPod Touch or iPhone. The BlackBerry Bold did not perform well in that regards. Make sure you show our unboxing photos to your girlfriends/wives so they don’t order you the wrong gift this Christmas Kwanzaa Hanukkah holiday.

Click on over to our WowWee Rovio unboxing gallery!

If you have a BlackBerry Bold operating on AT&T, this morning you would have woke to a few new icons and service books for YellowPages.com Mobile and TeleNav AT&T Navigator. In fact, some of us have had those icons for a couple days now. Given the name of the YellowPages.com Mobile service book, we’re wondering if this is a good indicator that AT&T may very well be getting ready to finally launch the BlackBerry Bold. That or they’re just getting their ducks in a row, and you’ll have to wait until 2009 to get a Bold, which is entirely possible. Couple more shots of the service books after the break if you’re really interested.