Good news, bad news for RIM

Waterloo, Ont. — Research In Motion Ltd. said preliminary figures show it pulled in $3 billion in revenue in the fiscal year that ended March 3, up 47 per cent from $2.1 billion last year (all figures in U.S. dollars). The company shipped approximately 6.4 million of its handheld devices during fiscal 2007

Approximately 1.02 million BlackBerry subscriber accounts were added in the fourth quarter. At the end of the quarter, the total BlackBerry subscriber account base was approximately 8 million.

The results are preliminary pending the a restatement of its U.S. GAAP second and third quarter figures related non-cash charges associated with past stock option grants to staff. Despite best efforts, the company said, more time is needed to prepare the updated filings and for its external auditors to complete their review of those filings. However it also said it believes the impact of any restatement will be immaterial.

Meanwhile, RIM said that a previously informal investigation by the U.S. Securities and Exchange Commission into its stock options granting practices has been converted to a formal investigation. Last month it said it will have to restate its financial statements for fiscal 2004, 2005, 2006 and part of 2007 to reflect the reduction of GAAP income by $250 million. As part of a special committee review, Jim Balsillie stepped down as chairman, although he retains his role as co-CEO.

“We are extremely pleased to report record results with $3 billion of revenue generated in the fiscal year and over one million BlackBerry subscriber accounts added within the fourth quarter alone,” Balsillie said in a statement. “We are entering fiscal 2008 with very healthy subscriber growth momentum, a strong slate of products and services, exceptional partnerships and a growing market leadership position. We look forward to building on this momentum and further extending the market opportunity for RIM and its partners in the coming year.”

Revenue for the first quarter of fiscal 2008 ending June 2, 2007 is expected to be in the range of $1.025 billion-$1.075 billion. Subscriber account additions in the first quarter are expected to be approximately in the range of 1.125-1.15 million.

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