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. Adele Ebbs, Research In Motion Limited, VP, IR . Jim Balsillie, Research In Motion Limited, Chairman, Co-CEO . Brian Bidulka, Research In Motion Limited, CAO . Maynard Um, UBS, Analyst . Chris Umiastowski, TD Newcrest, Analyst . Gus Papageorgiou, Scotia Capital, Analyst . Zach Coval, Barclays Capital, Analyst . Carl Binder Gouch, Credit Suisse, Analyst . Tim Long, Banc of America, Analyst
RIMM reported 2Q09 revenue of $2.58b and net income of $496m or $0.86 per diluted share. Expects 3Q09 revenue of $2.95-3.10b and fully diluted EPS of $0.89-0.97.
A. Key Data From Call 1. 2Q09 revenue = $2.58b. 2. 2Q09 net income = $496m. 3. 2Q09 diluted EPS = $0.86. 4. 2Q09 GM = 50.7%. 5. 2Q09 DSO = [56.5]. 6. 2Q09 inventory on hand = approx. $513m. 7. 2Q09-end total cash, cash equivalents, short-term and long-term investments = $2.24b. 8. 3Q09 revenue guidance = $2.95-3.10b. 9. 3Q09 fully diluted EPS guidance = $0.89-0.97.
S1. 2Q09 Product Launches & Announcements (J.B.) 1. Highlights: 1. Revenues of $2.58b, up 88% from prior year. 2. EPS $0.86, up from $0.50 in 2Q08. 3. Busy summer with a number of new product launches, announcement and several new relationships with companies such as AOL, Microsoft, MySpace, Slacker, Ticketmaster and TiVo. 2. Subscriber Accounts: 1. Added approx. 2.5m(Sic-see press release) net new subscriber accounts. 2. 2Q09-end total BlackBerry subscriber account base, approx. 19m. 1. Approx. 60% of net additions were by non-enterprise customers. 2. Approx. 42% of subscriber account base are non-enterprise users. 3. Continues to add carrier and distribution partners around the world. 1. Now has approx. 400 carrier distribution partners offering BlackBerry in over 150 countries around the world. 4. Percentage of subscriber base outside North America remained steady in low 30% range. 3. BlackBerry Bold: 1. Launched by 60 carriers in 29 countries this qtr. 2. Strong take-up by enterprise and consumer customers. 3. Mix of Bolds being activated and marketed is split roughly in half between enterprise and non-enterprise segments. 1. In the initial days of Bold launches, saw disproportionate amount of Bolds being activated as upgrades or replacements. 4. Mix between upgrades and new customers is beginning to shift now that the product is being marketed for a few weeks. 1. Consistent with past experience with other query devices such as Curve and 8800. 5. In markets where it is launched, product reviews of BlackBerry Bold have been overwhelmingly positive. 1. Looks forward to continued rollout of BlackBerry Bold around the world and a US launch in near future. 4. BlackBerry Pearl Flip Smartphone: 1. Announced this smartphone earlier this month at CTIA. 2. Pearl Flip is the first smartphone designed to address the estimated 70% of US market that prefers to use a flip form factor. 3. BlackBerry Pearl Flip, with its special drop-hinge design, SureType keyboard system, and dual-color LCD displays for easy message previewing, has cracked the code for a smart flip phone. 1. Ideally suited to address this large market segment. 4. In addition to Quad-Band/Edge, BlackBerry Pearl Flip allows a seamless handoff between Wi-Fi and cellular networks. 5. Looks forward to this new model's availability in markets around the world this fall. 5. BlackBerry Curve 8350i: 1. Recently announced BlackBerry Curve 8350i for Sprint's push-to-talk network. 2. In addition to being the newest BlackBerry smartphone to use iDEN network technology for Nextel Direct Connect, BlackBerry 8350i will include: 1. Integrated GPS and Wi-Fi. 2. Internal antenna. 3. 2-MegaPixel camera. 4. Advanced media player. 5. Large removable battery for optimal battery life. 3. 8350i is targeted to many market verticals where push-to-talk is a way of life while offering all convenience and capabilities that BlackBerry Curve product line is known for. 6. Product Launches in US: 1. While having a number of new products launching this fall, existing product portfolio continues to be strong. 2. Observed a significant ramp of BlackBerry Curve 8330 with many of Co.'s CDMA partners. 3. Verizon and Telus drove record activations lead in part by availability of new colors of Curve. 4. Successful launch of Curve in titanium followed by a successor in red led the device to become the most successful product ever launched at Sprint. 1. In order to take advantage of this high level of interest, has partnered with Sprint on a substantial joint marketing program, which will offer the Curve at $99 for Sept. and Oct. 5. Alltel continues to show strong support to BlackBerry platform by offering Red and Amethyst Pearl at $79 and by becoming first CDMA carrier to launch White Pearl 8130 in US. 6. AT&T continues to be a significant partner across all channels, including indirect retail, B2B, SMB and national retailers. 1. Promotion of Pearl 8110 with GPS continued through summer. 1. BlackBerry solution was featured in AT&T's Dads & Grads campaign that ran from June through Sept. 2. BlackBerry Professional Software was a key focus area for AT&T's dedicated SMB sales team. 7. Product Launches Internationally: 1. Latin America continues to be a strong market for BlackBerry products and services. 1. Carriers throughout the region heavily promoted BlackBerry solution throughout summer. 2. With BlackBerry Bold now launched with 20 carriers and continued strong interest in existing product portfolio, expecting this momentum to continue into the fall. 2. In Europe, continues to introduce new price plans for BlackBerry service, as Co. works with carriers to promote devices through more of their consumer channels. 3. T-Mobile Germany saw significant adoption through special pricing of less than ten-year old on Pearl and Curve, including six months for e-mail and GPS navigation. 1. Promotion drove retail store sales to increase significantly. 2. Vodafone Germany had strong results with promotion of pearl colors, including placement of Sunset Red Pearl in TV, print and online adds as well as hero status in 1,000 Vodafone retail stores. 4. In Spain, Orange launched BlackBerry smartphones for first time into its more than 900 retail stores, with: 1. Nine-year-old unlimited e-mail plan. 2. Special 50% discount on service plans for first three months. 5. In Turkey, Turkcell launched Bold in Aug. and supported it with TV, print and online campaign, as well as featured placement in its top retail stores with those efforts leading to significant increased sales for Turkcell. 6. BlackBerry Bold is making inroads into Asian markets. 1. In Hong Kong, Bold launch was supported by significant carrier promotion and is receiving positive reviews and market acceptance. 7. In Australia, launched Bold with Optus. 1. With Vodafone Australia and Telstra, seeing new pricing plans to support the device. 8. In China, continues to see greater interest among, with multinational and domestic enterprise accounts. 9. In India last week, introduced Bold with Bharti Airtel, Reliance Mobile and Vodafone. 1. Announced BlackBerry product availability for the first time with Tata India. 2. Has recently entered into a relationship with Redington (India) Limited to distribute BlackBerry products to Co.'s carrier partners in India. 1. Significant step for Co., as India is the second largest cell phone market in the world. 2. Agreement will allow Co. to gain broader access to SMB and consumer segments. 10. Continued to roll out more prepaid plans, including announcement of an offering with Indosat in Indonesia. 1. BlackBerry On Demand program allows individuals and small businesses to prepay for unlimited data increments via SMS with options of either seven or 30-day data plans. 1. Programs like this are in place in other regions, including Telcel in Latin America and TIM in Italy, where prepaid represents a …