Research In Motion Limited (RIM) today reported first quarter results for the three months ended May 29, 2004 (all figures in U.S. dollars and U.S. GAAP). Revenue for the first quarter of fiscal 2005 was $269.6 million, up 28% from $210.6 million in the previous quarter and up 158% from $104.5 million in the same quarter of last year. The revenue breakdown for the quarter was approximately 68% for handhelds, 19% for service, 9% for software licenses and 4% for other revenue. The total number of BlackBerry subscribers increased by approximately 270,000 from the prior quarter to approximately 1,340,000 subscribers.

"We are pleased to report strong results that exceeded expectations for the first quarter," said Jim Balsillie, Chairman and Co-CEO at RIM. "Our outlook remains positive as we enter the summer with continuing momentum on all strategic fronts including technology leadership, geographic expansion, enterprise and retail channel development, subscriber growth, financial performance and operational execution. Our carrier partners are experiencing significant success in the marketplace and are further expanding sales and marketing efforts to capitalize on the growing interest in BlackBerry."

Net income for the quarter was $55.0 million, or $0.28 per share diluted, compared to net income of $41.5 million or $0.23 per share diluted in the prior quarter. Excluding the litigation provision of $15.6 million or $0.08 per share diluted, the Company's adjusted net income and adjusted diluted earnings per share was $70.6 million and $0.36. Higher revenues, better than expected gross margins and operating efficiencies contributed to the net income growth during the quarter. The adjusted net income and adjusted diluted earnings per share do not have any standardized meaning prescribed by GAAP and thus are not comparable to similar measures presented by other issuers. These adjusted measures should be considered in the context of RIM's GAAP results.

RIM is updating revenue and earnings guidance for the second quarter of fiscal 2005 and introducing guidance for the third quarter. Revenue guidance for the second quarter of fiscal 2005 is being increased and is now expected to be in the range of $290-310 million. Revenue for the third quarter of fiscal 2005 is expected to be in the range of $340-360 million. RIM is also increasing earnings guidance for the second quarter. GAAP earnings per share (EPS) for the second quarter in now expected to be in the range of $0.32-$0.37 per share diluted and adjusted EPS is expected to be in the range of $0.40-$0.45 per share. For the third quarter, RIM is expecting EPS to be between $0.35-$0.40 per share diluted on a GAAP basis and $0.45-$0.50 cents adjusted.

The total of cash, cash equivalents, short-term and long-term investments was $1.55 billion as at May 29, 2004, compared to $1.49 billion at the end of the previous quarter. Strong cash flows from operating activities contributed to the quarter over quarter increase.