Edit Symbol List
Enter up to 25 symbols separated by commas or spaces in the text box below. These symbols will be available during your session for use on applicable pages.
Don't know the stock symbol? Use the symbol lookup tool.
Alphabetize the sort order of my symbols
Research In Motion Limited (RIMM)
Q2 2012 Earnings Call
September 15, 2011 5:00 pm ET
Brian Bidulka - Chief Financial Officer
Edel Ebbs - Vice President Investor Relations
James L. Balsillie - Co-Chairman of The Board, Co-Chief Executive officer and Member of Strategic Planning Committee
Unknown Executive -
Michael Lazaridis - Co-Founder, Co-Chairman, Co-Chief Executive Officer, President and Member of Strategic Planning Committee
T. Michael Walkley - Canaccord Genuity, Research Division
Simona Jankowski - Goldman Sachs Group Inc., Research Division
Peter Misek - Jefferies & Company, Inc., Research Division
Ehud Gelblum - Morgan Stanley, Research Division
Tim Long - BMO Capital Markets Canada
Tavis C. McCourt - Morgan Keegan & Company, Inc., Research Division
Gus Papageorgiou - Scotia Capital Inc., Research Division
Jim Suva - Citigroup Inc, Research Division
Mike Abramsky - RBC Capital Markets, LLC, Research Division
Jeffrey T. Kvaal - Barclays Capital, Research Division
Previous Statements by RIMM
» Research In Motion Limited's CEO Discusses Q1 2012 Results - Earnings Call Transcript
» Research In Motion Limited's CEO Discusses Q4 2011 Results - Earnings Call Transcript
» Research In Motion Limited F1Q11 (Qtr End 05/29/2010) Earnings Call Transcript
Thank you, Luke. Welcome to RIM's Fiscal 2012 Second Quarter Results Conference Call. With me on the call today are Jim Balsillie and Mike Lazaridis, Co-CEOs; Brian Bidulka, CFO; Edel Ebbs, Senior Vice President, Investor Relations. After I read our cautionary note regarding forward-looking statements, Jim and Mike will provide a business and strategic update. Brian will then review the second quarter results, and Edel will discuss our outlook for the third quarter of fiscal 2012. We will then open the call up for questions.
This call is available to the general public via call-in number and via webcast in the Investor Relations section at rim.com. The webcast include supporting slides that can viewed through your personal computer or your BlackBerry PlayBook tablet. A replay of the webcast will also be available on the rim.com website. We plan to wrap up the call before 6 p.m. Eastern this evening.
Some of the statements we will be making today constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. These include statements about our expectations and estimates with respect to product shipments, revenue, gross margin, operating expenses, CapEx, depreciation and amortization, earnings, channel inventory and seasonality for Q3 and beyond; our expectations regarding RIM's near- and long-term tax rates; our product development and marketing initiatives and timing, including our expectations relating to the BlackBerry PlayBook and the QNX operating system; our expectations regarding our cost optimization and share repurchase programs; developments relating to our carrier partners and other statements regarding our plans and objectives.
We will indicate forward-looking statements by using words such as expect, plan, anticipate, estimate, may, will, should, forecast, intend, believe, continue and similar expressions. All forward-looking statements reflect our current views with respect to future events and are subject to risks and uncertainties and assumptions we have made.
Many factors could cause our actual results, performance or achievements to be materially different from those expressed or implied by our forward-looking statements, including risk relating to our intellectual property rights; our ability to enhance our current products and develop new products and services; risks related to delays in new product introductions; risks related to RIM's ability to implement and to realize the anticipated benefits of its cost optimization program; risks relating to competition, including our ability to effectively compete in the tablet market; our ability to manage inventory and asset risks; our reliance on carrier partners, third-party manufacturers, third-party network developers and suppliers; risks relating to network disruptions and other business interruptions; our ability to manage our production processes; risks associated with our international operations; security risks and risks related to encryption technology; our ability to manage growth; difficulties in forecasting financial results, particularly over longer periods given the rapid technological changes, evolving industry standards, intense competition and short product life cycles that characterize our industry; risks associated with the share repurchase program; and other factors set forth in the Risk Factors and MD&A sections in RIM's filings with the SEC and Canadian securities regulators. We base our forward-looking statements on information currently available to us, and we do not assume any obligation to update them except as required by law.
I will now turn the call over to Jim.
James L. Balsillie
Thanks, Paul. RIM shipped approximately 10.6 million smartphones in the second quarter, and the BlackBerry subscriber base is now over 70 million. RIM was approximately -- revenue was approximately $4.2 billion, and service revenues surpassed $1 billion for the first time in RIM's history, reflecting the over 40% growth in our subscriber base over the past year. The lower-than-expected unit shipments in Q2 reflected lower shipments of in-life products as customers work through inventory and awaited the launch of new BlackBerry 7 smartphones.
Sell-through of BlackBerry smartphones in Q2 was the second highest ever at 13.7 million. Shipments of the BlackBerry 7 smartphones in the quarter were near the high end of our expectations but we're shipping for only 3 weeks and across just a portion of our carrier and partner network in Q2. BlackBerry 7 smartphones launched on schedule and have been enthusiastically received by our partners and customers for their blend of technical performance and industrial design. Mike will give further details on some of the launches later in the call.