rim-blackberry-logoWATERLOO, ONTARIO–(Marketwire – Dec. 20, 2012) – Research In Motion Limited (RIM) (NASDAQ:RIMM)(TSX:RIM), a world leader in the mobile communications market, today reported third quarter results for the three months ended December 1, 2012 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).


--  Cash increase of approximately $600 million to $2.9 billion 
--  Cash flow from operations was approximately $950 million 
--  Revenue of $2.7 billion 
--  GAAP net income from continuing operations of $14 million, or $0.03 per
    share diluted, including a $166 million favorable tax settlement 
--  Adjusted net loss of $114 million, or $0.22 per share diluted 
--  BlackBerry subscriber base of approximately 79 million users 
--  Shipments of 6.9 million smartphones and 255,000 PlayBooks 
--  RIM's Chief Information Officer, Robin Bienfait, announces retirement

Q3 Results

Revenue for the third quarter of fiscal 2013 was $2.7 billion, down 5% from $2.9 billion in the previous quarter and down 47% from $5.2 billion in the same quarter of fiscal 2012. The revenue breakdown for the quarter was approximately 60% for hardware, 36% for service and 4% for software and other revenue. During the quarter, RIM shipped approximately 6.9 million BlackBerry smartphones and approximately 255,000 BlackBerry PlayBook tablets.

GAAP net income for the quarter from continuing operations was $14 million, or $0.03 per share diluted. GAAP net income for the quarter, including loss from discontinued operations, was $9 million, or $0.02 per share diluted, compared with the GAAP net loss of $235 million, or $0.45 per share diluted, in the prior quarter and a GAAP net income of $265 million, or $0.51 per share diluted, in the same quarter last year.

Adjusted net loss for the third quarter was $114 million, or $0.22 per share diluted. Adjusted net loss and adjusted diluted loss per share exclude the impact of pre-tax charges of $55 million ($38 million on an after-tax basis) related to the Cost Optimization and Resource Efficiency (“CORE”) program and excludes the impact of an income tax benefit of $166 million. These impacts on GAAP net income from continuing operations and diluted earnings per share are summarized in the table below.

“RIM continued to execute on its product roadmap plans and to deliver on key financial metrics as it gets set for the global launch of BlackBerry 10,” said Thorsten Heins, President and CEO. “During the third quarter, we continued to demonstrate our strong financial position, generating $950 million in cash flow from operations, and increasing our cash position significantly to more than $2.9 billion. More than 150 carriers are currently completing technical acceptance programs for the first BlackBerry 10 products, and beta trials of BlackBerry Enterprise Service 10 are underway at more than 120 enterprises including 64 Fortune 500 companies. This is an exciting time and our carrier partners, application developers and employees are all looking forward to unveiling the innovation and excitement of BlackBerry 10 to our customers on January 30, 2013.”

RIM also announced today that Robin Bienfait, Chief Information Officer for RIM has made the decision to retire at the end of this year following 6 years of service to the Company. Robin has committed to continue supporting RIM in an advisory capacity to enable a smooth launch and seamless transition.

Under Robin’s watch, the BlackBerry service infrastructure has grown from 47 petabytes per year to more than 33 petabytes per month at the same time as the internal corporate infrastructure for RIM has grown at a remarkable pace. Robin joined RIM in the beginning of 2007 with the mandate to take RIM’s BlackBerry data services infrastructure from a single presence in Canada to a distributed model connecting to over 650 carrier partners worldwide. In addition, over this past year, Robin has led RIM’s Enterprise business unit focused on enabling services for Enterprise customers and preparing for the launch of the BlackBerry 10 platform. Robin has led a distinguished career. Before joining RIM, Robin held a number of senior leadership positions at AT&T and Bell Labs for over 22 years.

“Robin has been an outstanding CIO and has built a world class organization. Her team has diligently prepared us for the launch of BlackBerry 10 and beyond, and I will remain deeply grateful for her leadership and commitment,” said Thorsten Heins, President and CEO of Research In Motion.


The Company expects that there will be continued pressure on operating results as it gets set to launch its BlackBerry 10 platform in the fourth quarter. The Company intends to continue to consider using pricing initiatives on BlackBerry 7 devices and service fees in some markets as a way to maintain our subscriber base and drive more BlackBerry users. The timing of the BlackBerry 10 launch event for January 30, 2013 could also impact sales of current BlackBerry 7 products as some customers may defer purchasing decisions and wait for BlackBerry 10 devices. All these factors are expected to impact unit volumes, subscribers, margins and service fees. In addition, the company will be significantly increasing its marketing spending this quarter as expected, to support the global launch of BlackBerry 10, and the Company expects to report an operating loss for the fourth quarter. Further details about the Company’s outlook will be discussed on the conference call and live webcast to be held beginning at 5 pm ET today, information for which is set forth below.

Reconciliation of GAAP net income and diluted earnings per share from continuing operations to adjusted net loss and adjusted diluted loss per share from continuing operations:

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

                                          For the quarter ended December 1, 
                                               Net income  Diluted earnings 
                                              (loss) from  (loss) per share 
                                               continuing   from continuing 
                                          operations (net   operations (net 
                                           of income tax)    of income tax) 
As reported                               $            14   $          0.03 

CORE Program (net of tax)(1)                           38              0.07 
Income Tax Benefit(2)                                (166)            (0.32)

Adjusted                                  $          (114)  $         (0.22)


Note: Adjusted net loss and adjusted diluted loss per share from continuing operations 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 net loss and adjusted diluted loss per share from continuing operations 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)  As part of the Company's ongoing effort to streamline its operations   
     and increase efficiency, the Company commenced the CORE program in     
     March 2012. During the third quarter of fiscal 2013, the Company       
     incurred approximately $55 million in total pre-tax charges related to 
     the CORE program. Substantially all of the pre-tax charges are related 
     to one-time employee termination benefits, facilities costs and        
     manufacturing network simplification costs. During the third quarter of
     fiscal 2013, pre-tax charges of approximately $32 million were included
     in cost of sales, charges of approximately $4 million were included in 
     research and development and charges of approximately $19 million were 
     included in selling, marketing, and administration expenses. Additional
     charges for headcount related costs associated with the CORE program   
     will also be incurred in subsequent quarters.                          
(2)  Reflects the favorable impact of the settlement of uncertain income tax
     positions, including related interest and foreign exchange gains, the  
     Company recorded in the third quarter of fiscal 2013 that resulted from
     the restructuring of RIM's international operations.

Conference Call and Webcast

A conference call and live webcast will be held beginning at 5 pm ET, December 20, 2012, which can be accessed by dialing-1-800-814-4859 (North America), (+1)416-644-3414 (outside North America), or through your personal computer or BlackBerry(R) PlayBook(TM) tablet atwww.rim.com/investors/events/index.shtml. A replay of the conference call will also be available at approximately 7 pm ET by dialing (+1)416-640-1917 and entering pass code 4501370#. A replay of the webcast will be available on your personal computer or BlackBerry PlayBook tablet by clicking the link above. This replay will be available until midnight ET, January 3, 2013.

About Research In Motion

Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry(R) 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.comor 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 regarding: RIM’s plans and expectations relating to the global launch of BlackBerry 10, including the timing of the January 30, 2013 launch event; RIM’s expectation that there will be continued pressure on operating results in the fourth quarter of fiscal 2013; RIM’s intention to continue to use pricing initiatives to maintain its subscriber base and drive more BlackBerry users; the anticipated impact of the timing of the BlackBerry 10 launch on sales of current BlackBerry 7 products; expectations regarding lower unit volumes, subscribers, margins and service fees; anticipated marketing spending in the fourth quarter of fiscal 2013; the Company’s current expectation that it will report an operating loss in the fourth quarter of fiscal 2013; and the Company’s anticipated cash position in the fourth quarter of fiscal 2013. The terms and phrases “continued”, “get set”, “completing”, “underway”, “looking forward”, “expects”, “intends”, “drive”, “could”, “may”, “will”, “anticipates”, 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, the timing and success of new product introductions, RIM’s expectations regarding its business, strategy, opportunities and prospects, including its ability to implement meaningful changes to address its business challenges, and RIM’s expectations regarding the cash flow generation of its business. 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:
RIM’s ability to enhance current products and develop new products and services in a timely manner or at competitive prices, including risks related to further delays in new product introductions, including the Company’s BlackBerry 10 smartphones; risks related to intense competition, including RIM’s ability to compete in the tablet market, strategic alliances or transactions within the wireless communications industry, and risks relating to RIM’s ability to maintain or grow its services revenues including risks related to the anticipated decline in RIM’s infrastructure access fees and RIM’s ability to mitigate the impact of such decline on its consolidated revenues; RIM’s reliance on carrier partners and distributors; risks relating to network disruptions and other business interruptions, including costs, potential liabilities, lost revenue and reputational damage associated with service interruptions; RIM’s ability to manage inventory and asset risk; RIM’s ability to implement and realize the anticipated benefits of its CORE program; RIM’s ability to maintain or increase its cash balance; security risks and risks related to the collection, storage, transmission, use and disclosure of confidential and personal information; RIM’s ability to attract and retain key personnel; RIM’s ability to adapt to recent management changes and headcount reductions; RIM’s reliance on suppliers of functional components for its products and risks relating to its supply chain; RIM’s ability to maintain and enhance the BlackBerry brand; risks related to RIM’s international operations; risks related to government regulations, including regulations relating to encryption technology; RIM’s reliance on third-party network infrastructure developers, software platform vendors and service platform vendors; RIM’s ability to expand and manage its BlackBerry App World applications catalogue; RIM’s reliance on third-party manufacturers;
potential defects and vulnerabilities in RIM’s products; risks relating to litigation, including litigation claims arising from the Company’s past practice of providing forward-looking guidance; RIM’s ability to manage its past growth and its ongoing development of service and support operations; potential additional charges relating to the impairment of goodwill or other intangible assets recorded on RIM’s balance sheet; disruptions to RIM’s business as a result of shareholder activism; risks related to intellectual property; and difficulties in forecasting RIM’s financial results 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 the “Cautionary Note Regarding Forward-Looking Statements” section of 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.

                         Research In Motion Limited                         
                   Incorporated under the Laws of Ontario                   
  (United States dollars, in millions except share and per share amounts)   

                   Consolidated Statements of Operations                    

                                                        For the nine months 
                        For the three months ended             ended        
                    --------------------------------- ----------------------
                     December   September   November    December   November 
                      1, 2012     1, 2012   26, 2011     1, 2012   26, 2011 
----------------------------------------------------- ----------------------

Revenue             $   2,727  $    2,861  $   5,166   $   8,396  $  14,242 
Cost of sales           1,897       2,117      3,759       6,036      9,067 
                    --------------------------------- ----------------------
Gross margin              830         744      1,407       2,360      5,175 
                    --------------------------------- ----------------------

  Gross margin %         30.4%       26.0%      27.2%       28.1%      36.3%

Operating expenses                                                          
 Research and                                                               
  development             393         366        366       1,126      1,170 
 Selling, marketing                                                         
  and administration      487         556        567       1,589      1,954 
 Amortization             180         180        146         533        419 
 Impairment of                                                              
  goodwill                  -           -          -         335          - 
                    --------------------------------- ----------------------
                        1,060       1,102      1,079       3,583      3,543 
                    --------------------------------- ----------------------

Operating income                                                            
 (loss)                  (230)       (358)       328      (1,223)     1,632 

 Investment income,                                                         
  net                      18           -          2          21         16 
                    --------------------------------- ----------------------

Income (loss) from                                                          
 operations before                                                          
 income taxes            (212)       (358)       330      (1,202)     1,648 

Provision for                                                               
 (recovery of)                                                              
 income taxes            (226)       (129)        65        (480)       359 

Income (loss) from                                                          
 operations                14        (229)       265        (722)     1,289 

Loss from                                                                   
 operations, net of                                                         
 tax                       (5)         (6)         -         (22)         - 

                    --------------------------------- ----------------------
Net income (loss)   $       9  $     (235) $     265   $    (744) $   1,289 
                    --------------------------------- ----------------------
                    --------------------------------- ----------------------

Earnings (loss) per                                                         

 Basic and diluted                                                          
  earnings (loss)                                                           
  per share from                                                            
  operations             0.03       (0.44)      0.51       (1.38)      2.46 

 Basic and diluted                                                          
  loss per share                                                            
  from discontinued                                                         
  operations            (0.01)      (0.01)         -       (0.04)         - 
 Total basic and                                                            
  diluted earnings                                                          
  (loss) per share  $    0.02  $    (0.45) $    0.51   $   (1.42) $    2.46 
                    --------------------------------- ----------------------
                    --------------------------------- ----------------------

 number of common                                                           
 shares outstanding                                                         

 Basic                524,160     524,160    524,139     524,160    524,079 
 Diluted              524,852     524,160    524,139     525,541    524,279 

Total common shares                                                         
 outstanding (000's)  524,160     524,160    524,160     524,160    524,160 

                         Research In Motion Limited                         
                   Incorporated under the Laws of Ontario                   
   (United States dollars, in millions except per share data) (unaudited)   

                        Consolidated Balance Sheets                         

                                                   December 1,     March 3, 
As at                                                     2012         2012 

    Cash and cash equivalents                    $       1,910  $     1,516 
    Short-term investments                                 821          247 
    Accounts receivable, net                             2,174        3,062 
    Other receivables                                      366          486 
    Inventories                                            457        1,027 
    Income taxes receivable                                333          135 
    Other current assets                                   478          356 
    Deferred income tax asset                              217          195 
    Assets held for sale                                    70           32 
                                                         6,826        7,056 

Long-term investments                                      207          337 
Property, plant and equipment, net                       2,493        2,748 
Goodwill                                                     -          304 
Intangible assets, net                                   3,113        3,286 
                                                 $      12,639  $    13,731 

    Accounts payable                             $         661  $       744 
    Accrued liabilities                                  1,844        2,382 
    Deferred revenue                                       555          263 
                                                         3,060        3,389 

Deferred income tax liability                              225          232 
Income taxes payable                                        12           10 
                                                         3,297        3,631 

Shareholders' Equity                                                        
Capital stock and additional paid-in capital             2,417        2,446 
Treasury stock                                            (242)        (299)
Retained earnings                                        7,169        7,913 
Accumulated other comprehensive income (loss)               (2)          40 
                                                         9,342       10,100 
                                                 $      12,639  $    13,731 

                         Research In Motion Limited                         
                   Incorporated under the Laws of Ontario                   
   (United States dollars, in millions except per share data) (unaudited)   

                   Consolidated Statements of Cash Flows                    

                                                 For the nine months ended  
                                                 December 1,   November 26, 
                                                        2012           2011 

Cash flows from operating activities                                        
Net income (loss) from continuing operations            (722)         1,289 
Net loss from discontinued operations                    (22)             - 
Net income (loss)                              $        (744) $       1,289 

Adjustments to reconcile net income (loss) to                               
 net cash provided by operating activities:                                 
 Amortization                                          1,524          1,134 
 Deferred income taxes                                   (15)             5 
 Income taxes payable                                      2            (17)
 Stock-based compensation                                 63             63 
 Impairment of goodwill                                  335              - 
 Other                                                    25             17 
Net changes in working capital items                     903           (634)
Net cash provided by operating activities              2,093          1,857 

Cash flows from investing activities                                        
Acquisition of long-term investments                    (200)          (166)
Proceeds on sale or maturity of long-term                                   
 investments                                             180            366 
Acquisition of property, plant and equipment            (325)          (713)
Acquisition of intangible assets                        (770)        (1,178)
Business acquisitions, net of cash acquired             (105)          (226)
Acquisition of other assets                                -           (779)
Acquisition of short-term investments                   (837)          (137)
Proceeds on sale or maturity of short-term                                  
 investments                                             392            462 
Net cash used in investing activities                 (1,665)        (2,371)

Cash flows from financing activities                                        
Issuance of common shares                                  -              9 
Tax deficiencies related to stock-based                                     
 compensation                                            (10)            (2)
Purchase of treasury stock                               (25)          (150)
Net cash used in financing activities                    (35)          (143)
Effect of foreign exchange gain (loss) on cash                              
 and cash equivalents                                      1            (16)

Net increase (decrease) in cash and cash                                    
 equivalents for the period                              394           (673)
Cash and cash equivalents, beginning of period         1,516          1,791 
Cash and cash equivalents, end of period       $       1,910  $       1,118 

                                                 December 1,   September 1, 
As at                                                   2012           2012 

Cash and cash equivalents                      $       1,910  $       1,506 
Short-term investments                                   821            554 
Long-term investments                                    207            278 
                                               $       2,938  $       2,338