`
`(Exceeds 100 pages)
`
`Proceeding/Serial No: 91188320
`
`Filed:
`
`04-15-2010
`
`Title:
`
`OpQoser’s Notice of Reliance #3:
`Printed Publications
`
`Part
`
`1
`
`of
`
`1
`
`
`
`CERTIFC[ATE OF MAILING
`
`I hereby certify that this correspondence is being deposited with the
`United States Postal Service with sufficient postage as first-class
`mail in an envelope addressed to: Trademark Trial and Appeal
`Board, United States Patent and Trademark Office, P.O.Box 1451,
`Alexandria, VA 22313-1451. on April L, 2010.
`
`Jeffrey J. Morgan
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`Opposition No.: 91188320
`
`Application No.:
`
`77/368,723
`
`Mark: SENSORS IN MOTION
`
`) ) ) ) ) )
`
`) )
`
`) )
`
`RESEARCH IN MOTION LIMITED
`
`Opposer,
`
`V.
`
`SENSORS IN MOTION, INC.
`
`Applicant.
`
`OPPOSER’S NOTICE OF RELIANCE #3:
`PRINTED PUBLICATIONS
`
`Opposer Research In Motion Limited (“RIM” or “Opposer”), pursuant to 37 C.F.R. §
`
`2.120(e), hereby gives notice that it will rely on Research In Motion Limited’s 2010 Annual
`
`Report, attached hereto as Exhibit 6. The Annual Report is available to the general public on the
`
`Internet at the URL shown in Exhibit 6. The Annual Report shows financial data related to the
`
`sale of goods and services under the RESEARCH IN MOTION trademark and is relevant to
`
`show the fame, notoriety, reputation, prestige and scope of use of the mark.
`
`Dated: April /3”“, 2010
`
`Willifl R. Towns
`
`Jeffrey J. Morgan
`Novak Druce + Quigg LLP
`1000 Louisiana Street, 53rd Floor
`Houston, Texas 77002
`
`Attorneys for Opposer
`Research In Motion Limited
`
`
`
`CERTIFICATE OF SERVICE
`
`I hereby certify that a copy of the foregoing OPPOSER’S NOTICE OF RELIANCE #3:
`
`PRINTED PUBLICATIONS was sent by U.S. First Class Mail, postage prepaid, to the following
`
`on this
`
`day of April, 2010:
`
`David Smukowski
`
`Sensors in Motion
`
`9206 NE 15‘ St.
`
`Bellevue, WA 98004
`
`
`
`1000 Louisiana Street, 53rd Floor
`
`Houston, Texas 77002
`
`
`
`OPPOSER’S EXHIBIT 6
`
`
`Research In Motion Limited V. Sensors in Motion Inc.
`
`Opposition No. 91 188320
`
`Submitted with Opposer’s Notice of Reliance #3:
`
`
`
`Research In Motion — Annual Reports, Financial information, XBRL Fi...
`
`http2//www.rim.com/investors/documents/
`
`T
`
`'
`
`' ‘£5531
`
`Home > Investors >
`
`Financial Documents
`
`Access annual reports annual information forms —;AlFs, prose,’ circulars financial releases and quarterly financial
`information.
`
`Fiscal Year 2010
`
`Reports
`
`- Fiscal 2010 <XBRL Filesi
`
`- 2010 Annual Report (PDF;
`
`- Annual Information Form (AlFl— Fiscal 2010 (PDFi
`0 Q3 Fiscal 2010 Financial Information (PD?-
`
`- Q2 Fiscal 2010 Financial Information (PDF‘
`
`- Q1 Fiscal 2010 Financial Information (PDF;
`
`Financial Releases
`
`- Q4 Fiscal 2010 Results Announcement (PDFE
`
`- Q3 Fiscal 2010 Results Announcement (PDF;
`
`- RIM Announces Common Share Repurchase Program (PD?)
`- Q2 Fiscal 2010 Results Announcement «’PDFi
`
`- RIM Executives Adogt Automatic Securities Disposition Plan (PD?)
`- Q1 Fiscal 2010 Results Announcement (DD?
`
`Fiscal Year 2009
`
`Reports
`
`- 2009 Annual Regort «: PDF.
`
`0 Pro>_<y Circular — Fiscal 2009 (PDFi
`
`- Annual Information Form (AIF) — Fiscal 2009 »i9DF;
`- Q3 Fiscal 2009 Financial Information lPDFi
`
`- Q2 Fiscal 2009 Financial Information {P;‘>.=‘
`
`- Q1 Fiscal 2009 Financial Information i'PDF;
`
`Financial Releases
`
`o Q4 Fiscal 2009 Results Announcement :’PDF;«
`
`0 Research In Motion Provides Updated Subscriber Forecast {PDFI
`- Q3 Fiscal 2009 Results Announcement LPDF;
`
`- RIM Corrects Q2FYO9 Geographic Revenue Disclosure i‘PDFs
`e Q2 Fiscal 2009 Results Announcement «PDF
`
`-= Q1 Fiscal 2009 Results Announcement :PDFo
`
`Fiscal Year 2008
`
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`
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`‘Research In Motion ~ Annual Reports, Financial Infomtation, XBRL Fi...
`
`http://www.rim.com/investors/documents/
`
`Reports
`
`0 2008 Annual Report {PDF%
`
`0 Pro)_<y Circular — Fiscal 2008 (PDF1
`
`- Annual Information Form (Al F) — Fiscal 2008 <PDFi
`
`- Q3 Fiscal 2008 Financial Information (PDF;
`
`0 Q2 Fiscal 2008 Financial Information (PDF;
`0 Q1 Fiscal 2008 Financial Information (P3?
`
`Financial Releases
`
`- Q4 Fiscal 2008 Results Announcement QPDF;
`
`- Research In Motion Provides Updated Subscriber Forecast (PD?)-
`
`- RIM Executive Amends Automatic Securities Disposition Plans (PDF;
`
`- Q3 Fiscal 2008 Results Announcement {PDF}
`
`0 Certain RIM Executives Adopt Automatic Securities Disposition Plans (PDF;
`0 Q2 Fiscal 2008 Results Announcement :,’PDF:»
`
`« Q1 Fiscal 2008 Results Announcement {PDFi>
`
`Fiscal Year 2007
`
`Reports
`
`- 2007 Annual Report IPDF,
`
`o Pro>_<y Circular — Fiscal 2007 (PD?)
`e Annual Information Form (AIF) — Fiscal 2007 PDF;
`
`0 Q3 Fiscal 2007 Financial Information (PDF)
`
`- Q2 Fiscal 2007 Financial Information (PD?)
`
`- Q1 Fiscal 2007 Financial Information (PUFF;
`
`Financial Releases
`
`- Q4 Fiscal 2007 Results Announcement (PDF;
`
`o Q3 Fiscal 2007 Results Announcement i’F‘DF>
`
`c RIM Provides Update on Management—lnitiated, Voluntary Review of Historical Stock Option Grants (PDF;
`9 Q2 Fiscal 2007 Results Announcement zfPDF,s
`
`o RIM Announces Management—lnitiated, VolL_in_ta_ry Review of Historical Stock Oggieurants §PDF)
`0 Q1 Fiscal 2007 Results Announcement ;PDF>
`
`Status Updates
`
`- RIM Completes Restatement and Provides Status Update (PDF)
`
`- RIM Provides Status Update — May 9 2007 <'PDF)
`
`- RIM Provides Status Update — April 25, 2007 <fPDFji
`
`- RIM Provides Status Update — March 301 2007 (PD?)
`
`e RIM Provides Status Update — March 16_,_ 2007 (PD?)
`
`0 RIM Provides Status Update and Reports on Results of Internal Review of Stock Option Grants
`by Special Committee :PDF‘:
`
`2 RIM Provides Status Update — February 27 2007 {PDF ,1
`
`- RIM Provides Status Update — Februagg 16 2007 {PDF)
`
`o RIM Provides Status Update ~ February 21 2007 {PDF)
`
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`
`
`Research In Motion — Annual Reports. Financial Information. XBRL Fi...
`
`http://www.rim.com/investors/documents/
`
`- RIM Provides Status Update — Januam 19 2007 (PDF;
`
`- RIM Provides Status Update — January 5; 2007 <fPDF)
`
`o RIM Provides Status Update — December 21, 2006 I PDFI
`
`- RIM Provides Status Update — December 8 2006 (PD?)
`
`- RIM Provides Status Update — November 24 2006 (PDF;
`
`- RIM Provides Status Update — November 10, 2006 {PDF>
`
`- RIM Provides Status Update — October 27, 2006 (PDF;
`
`Fiscal Year 2006
`
`Reports
`
`- 2006 Annual Report a’PDF;
`
`- Proxy Circular — Fiscal 2006 <1 PCJF;
`
`0 Annual Information Form (AIF) — Fiscal 2006 (PDF;
`
`- Q3 Fiscal 2006 Financial Information (PD?)
`
`c Q2 Fiscal 2006 Financial Information {PDF:
`
`- Q1 Fiscal 2006 Financial Information e:fPDF,a
`
`Financial Releases
`
`0 Q4 Fiscal 2006 Results Announcement :;PD?:
`
`o Q3 Fiscal 2006 Results Announcement (POP:
`
`- Research In Motion Announces a Common Share Repurchase Program IPDFI
`- Q2 Fiscal 2006 Results Announcement (PDF:
`
`o Q1 Fiscal 2006 Results Announcement (PDF;
`
`Fiscal Year 2005
`
`Reports
`
`a 2005 Annual Report (PD?)
`a Pro
`Circular— Fiscal 2005 (PD?)
`
`o Annual Information Form (A|F1— Fiscal 2005 IPDF)
`
`Financial Releases
`
`- Q4 Fiscal 2005 Results Announcement -;PD
`
`6 Q3 Fiscal 2005 Results Announcement {PD
`
`v Q2 Fiscal 2005 Results Announcement (PD
`
`- Q1 Fiscal 2005 Results Announcement IPD
`
`‘I
`
`I
`
`‘I
`
`'71"H"71“TI 1
`
`Fiscal Year 2004
`
`Reports
`
`- 2004 Annual Report IPDF;
`
`- Prom Circular — Fiscal 2004 (POP;
`
`- Annual Information Form QAIF) — Fiscal 2004 «.jPDF)
`
`Financial Releases
`
`e Q4 Fiscal 2004 Results Announcement IPDF’;
`
`3of4
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`
`
`Research In Motion — Annual Reports, Financial Informan'on, XBRL Fi...
`
`http://www.rim.com/investors/documents/
`
`0 03 Fiscal 2004 Results Announcement (PD?)
`
`- Q2 Fiscal 2004 Results Announcement (PD?)
`
`0 Q1 Fiscal 2004 Results Announcement (PDF;
`
`Fiscal Year 2003
`
`Reports
`
`0 2003 Annual Regort (POP;
`
`o Proxy Circular — Fiscal 2003 PDF;
`
`- Annual Information Form LAIF) — Fiscal 2003 (PD?)
`
`Financial Releases
`
`0 Q4 Fiscal 2003 Results Announcement {PUP}
`
`- Q3 Fiscal 2003 Results Announcement «(PDF3
`
`0 Q2 Fiscal 2003 Results Announcement (POE:
`
`- Q1 Fiscal 2003 Results Announcement {PDFW
`
`Fiscal Year 2002
`
`Reports
`
`0 2002 Annual Re ort «DEF;
`
`Fiscal Year 2001
`
`Reports
`
`- 2001 Annual Regort (PD?)
`
`Fiscal Year 2000
`
`Reports
`
`- 2000 Annual Regort :PDF;—
`
`Fiscal Year 1999
`
`Reports
`
`0
`
`999 Annual Regort gPDF;»
`
`Fiscal Year 1998
`
`Reports
`
`- 1998 Annual Report {PDF}
`
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`
`
`hi
`
`
`
`
`
`
`
`W
`
`J.‘ 4
`
`we love what we do at RIM and it shows.
`
`RIM is focused on delivering rich user experiences to our customers through the
`
`design and engineering of BlackBerrg smartphones and services that are scalable
`
`and sustainable on our partners‘ wireless networks. We focused on efficiencg right from
`
`the start. In the earlg dogs. BlackBerrg devices were designed to run on little more thar
`
`glorified paging networks. So efficiencg is in our DNA. Our unique experience and expertise
`
`gives BlackBerrg smartphones significant advantages including long batterg life, real—time
`
`deliverg of information and cost effectiveness for our partners and end-users. To those of
`
`uou who choose to dream and live big. we put that kind of spirit into our smartphones so gou
`
`can pursue gour own passions at ang time.
`
`BlackBerrg smartphones were among the first smartphones in North America and
`
`remain the leading smartphone platform in this market. Now we are seeing a similar
`
`revolution happening around the world. Both enterprises and consumers recognize our
`
`strength as a world class platform for all kinds of communications — instant messaging,
`
`social networking. e-mail, texting, multimedia and more. The tight integration of leading
`
`edge hardware, purpose built software and the BlackBerrg infrastructure has generated
`
`one of the most robust and secure solutions on the market. Couplethis with the multi-
`
`tasking. push—based applications capabilities ofthe platform and BlackBerrg smartphones
`
`stand out. BlackBerrg is a smartphone platform that gou can run gour life on.
`
`Success follows passion.
`
`'5 BlacKBerry.
`
`
`
`At RIM, we build groundbreaking wireless technoiogg. We pioneered
`
`push email and made sn‘iartpt'iones before most people knew what
`
`a smartphone was "l'odog. feature: phone users are rapidlg aspiring
`
`to smartphones, and this transition
`
`propelling our industrg and the
`
`adoption of the BiackBerrg platform.
`
`
`
`0 unique mobile experience for our customers. During the past gear
`we launched several new BlackBerrg smartphones with enhanced
`functionalitg, features, performance and designs, including the
`BlackBerrg‘ Tour" 9630, BlackBerrg‘ Curve“ 8520/ 8530, BlackBerrg‘
`Storm2‘“ 9520/9550 and BlackBerrg Bold 9700.
`Earlg in fiscal 2010, RIM launched BlackBerrg App World“ and we
`are pleased to report that the developer communitg is thriving. RIM
`continues to provide developers with robust tools, technologies and
`business services to assist them in creating and marketing even more
`powerful and useful applications. Related initiatives in 2010 included
`the second annual BlackBerrg Developer Conference, the introduction
`ofthe BlackBerrg Academic Program and a varietg of new
`development tools, such as BlackBerrg’ Theme Studio. EllackBerrg
`Widgets, and new pagment and advertising tools and services to
`help developers monetize their applications. RIM also ipreviewed
`a new WebKit-based browser that is expectedito launch in
`fiscal 2011.
`The BlackBerrg platform remains the
`corporate standard for enterprise mobilitg. In
`recognition of its leadership in the enterprise
`,
`.0 market in fiscal 2010, BlackBerhg' Enterprise
`Server version 5.0 received the Global
`obile Award for the ‘Best Mobile Enterprise
`roduct or Service’ at GSMA’s Mobile World
`
`ongress and was also the first mobile
`platform to receive the Common Criteria
`, EAL4+ Securitg Certification. We are
`committed to maintaining our leadership
`in this market and continue to strengthen
`the BlackBerrg platform through enhanced
`nor value added services such as BlackBerrg‘ Mobile Voice
`intég”
`Sgstem (mobilizes PBX sgstems and brings office phone features to
`BlackBerrg smartphones), Chalk Pushcast Software (for corporate
`podcasting) and enterprise social networking and collaboration
`tools. We also recentlg launched BlackBerrg’ Enterprise Server
`Express to further extend our market opportunitg bg providing
`companies of all sizes with a cost—effective solution that supports
`mobile connectivitg for emplogees without compromising securitg or
`manageabilitg.
`RIM is a pioneer in the wireless data industrg and the
`BlackBerrg solution was purposefullg designed to deliver a true
`‘push”based user experience while also offering advanced securitg,
`manageabilitg, spectral efficiencg and power management.
`R|M’s BlackBerrg‘ Infrastructure is a keg component in the unique
`BlackBerrg value proposition and continues to be an important
`source of our competitive advantage. RiM’s proactive and ongoing
`investment in infrastructure has enabled us to continue to provide the
`
`
`
`Message from the Co-CEOs
`Fiscal 2010 was another successful gear for Research In Motion
`with strong financial results and record shipments of 37 million
`BlackBerrg‘ smartphones. RIM was able to successfullg expand
`its global market share while continuing to achieve strong sales in
`North America. This exceptional performance was fueled bg a broad
`portfolio of compelling products and services and solid business
`execution bg RlM‘s emplogees and partners.
`Against the backdrop of a challenging global economg, RIM
`grew revenue 35% to $15 billion and GAAP net income 30% to $2.5
`billion in fiscal2010. At the end ofthe gear, the BlackBerrg subscriber
`account base was over 41 million with approximatelg 17 million net
`new subscriber accounts added and over a third of our customers
`residing outside North America. There
`are now approximatelg 550 carriers
`and distribution partners offering
`BlackBerrg products and services in
`175 countries around the world. RIM
`
`continues to expand the reach of the
`BlackBerrg platform in new market
`segments while maintaining its
`leadership position in the enterprise
`market.
`In fiscal 2010, over 35% of total
`revenues came from outside
`North America. RlM’s international
`
`presence grew significantlg during
`the gear, with robust growth in Latin
`America, Asia Pacific, the Middle East
`and Western Europe. smartphones such
`as the BlackBerrg‘ Curve" 8520 and the BlackBerrg'Bold'” 9700, as
`well as popular applications that leverage the BlackBerrg platform
`such as push email and BlackBerrg‘ Messenger (BBM'”), have been
`instrumental in driving RlM’s internationalgrowth. BBM use increased
`five-fold during fiscal 2010 and we believe this growth is a strong
`indicator ofthe potential for keg applications to drive even greater
`adoption and Iogaltg to the BlackBerrg platform in the coming gear.
`The value of the BlackBerrg brand also increased substantiallg
`during fiscal 2010. Last gear we were pleased to have been included
`on the Millward Brown Top 100 Most Powerful Brands list. This
`gear our focused business efforts. including integrated marketing
`programs and new advertising campaigns, helped move the
`BlackBerrg brand from 51st to 16th on the list. We continue to invest
`in the BlackBerrg brand in order to grow consumer interest and
`purchase intent both internationallg and in North America.
`Research and development efforts in fiscal 2010 remained
`focused on developing world class products and services that deliver
`
`
`
`
`
`
`
`
`
`industry-leading functionality, efficiency, security, scalability and
`quality of service necessary to continue meeting the growing needs
`of our customers and partners.
`RlM's global manufacturing and supply chain teams have
`responded to the growing demand for BlackBerry smartphones by
`expanding their capabilities while continuing to focus on meeting
`customer expectations. in addition to strategic investments in our
`Waterloo manufacturing facility, we have also grown manufacturing
`capacity through the engagement of new outsourcing partners
`and the addition of production capabilities in key locations around
`the world. These new facilities complement our existing network
`of manufacturing partners and meet RlM’s quality, cost, flexibility
`and delivery expectations. We continue to invest in the integration
`of our globalsupply chain by developing relationships with key
`suppliers to support future product requirements and achieve greater
`forecast accuracy through improved demand management. In
`support of this supply chain integration and growth. RIM is investing
`in a leading edge IT systems infrastructure and global information
`management system, driving a world class supply chain engine to
`achieve the highest possible levels of customer satisfaction. with
`continued global supply chain investment and the addition of flexible
`production capacity, RIM is well positioned to meet the requirements
`of our global carrier partners and will continue to focus on improving
`these capabilities to meet and exceed our partner expectations for on
`time delivery of high quality products for their customers.
`Providing exceptional support forthe growing number of
`BlackBerry subscribers is an important competitive advantage for
`RIM and its partners. Our customer support efforts in fiscal 2010
`continued to focus on scalability, ease-of use, efficiency and cost-
`effectiveness. In addition, we continue to build and strengthen RiM’s
`corporate structure, including our capabilities in finance, operations,
`administration and facilities to meet current and future growth. RIM
`had approximately 14,000 employees at the end of fiscal 2010. we
`continue to seek the best talent across all areas of the Company.
`including R8lD, carrier support, business development, marketing,
`customer care and manufacturing. We also continue to recruit co—op
`students and new graduates from top universities and colleges to
`ensure that we have the best new talent to enable us to continue to
`grow and innovate.
`We are proud of RlM’s accomplishments in fiscal 2010 and
`would like to thank our employees around the world whose
`abilities, hard work and determination enabled RIM to once again
`execute effectively and deliver solid results. We would also like
`to communicate sincere appreciation to our customers, partners,
`suppliers and shareholders for their support throughout the year.
`
`We believe that RIM is well positioned to take advantage ofthe
`exciting opportunities that lie ahead in fiscal 2011. Some of our goals
`for the coming year include:
`
`-
`
`-
`
`-
`
`-
`
`-
`
`-
`
`-
`
`continue to enhance the user experience by launching a new
`Webkit-based browser and new user interface for BlackBerry
`smartphones. and by growing the number ofapplicartions and
`services available for the BlackBerry platform;
`
`launch several new BlackBerry smartphones and other products
`and services to drive growth in both new and existing geographies
`and market segments;
`
`build on the strong international growth achieved overthe past
`year by launching tiered pricing and targeted products and
`services within new market segments and geograph ies;
`
`continue to increase the value of the BlackBerry brand through
`integrated marketing efforts;
`
`expand our leadership in the business market by leveraging
`value—added services, including Chalk Pushcasts and BlackBerry
`Mobile Voice System, while also aggressively targeting small and
`medium sized business with BlackBerry Enterprise Server Express;
`
`aggressively grow the BlackBerry subscriber account base and
`deliver solid financial performance and profitability for our
`shareholders; and
`
`attract, hire and retain the best available talent to support R|M‘s
`customers and partners and to maintain RlM’s market leading
`position.
`
`
`
`
`
`
`
`
`
`Mike Lazaridis
`President and Co-CEO
`
`Jim Balslllle
`Co—CEO
`
`
`
`With approximatelg 550 carriers 82 distribution
`
`partners in 175 countries RIM is well positioned to grow
`
`the presence of the BlackBerrg platform outside of North America.
`
`Our international subscriber base nearlg doubled in fiscal 2010.
`
`This growth has been driven by strong BlackBerrg adoption in
`
`markets including Latin America, SouthEast Asia, the Middle East
`
`and Western Europe.
`
`RIM has averaged over 80% annual growth in our
`
`subscriber base since the launch of BlackBerrg. Fiscal 2010 was
`
`another gear of exceptional growth.
`
`Over 250,000 organizations around the world are
`
`currentlg using BlackBerrg Enterprise Server and in fiscal 2010
`
`RIM introduced BlackBerrg Enterprise Server Express to better
`
`address the needs of small and medium sized businesses.
`
`Real—time communications and deep, rich,
`
`contextual and integ rated applications make
`
`BlackBerru smartphones part ofthe fabric of our end-users’ lives.
`
`These applications leverage the push—based, multi—tasking capabilities of
`
`the BlackBerrg platform to deliver a unique and intuitive user experience.
`
`BlackBerrg App World provides a single point of access to a world of
`
`compelling applications that allow gou to run gour life on BlackBerrg.
`
`
`
`BlockBerru Subscriber
`Accounts
`(in millions)
`
`Annual Revenue
`(in billions ofU.S.dollors)
`
`lnlerncitioncil Subscriber
`AC‘?QU“t5
`(in millions)
`
`Fiscal 20ivO Geographic
`Revenue Mix
`
`i____ido L_____i lei
`Omifimflgm
`2007
`2008
`2009
`2010
`
`58% U.S_
`
`5% Conodc
`
`10% UK.
`
`27% Other
`
`BloickBerrg Smortphone
`
`(in millions)
`
`Worldwide Emplogees
`(in thOUSGfldS)
`
`D6
`
`07
`
`O8
`
`09
`
`10‘
`
`’ Full time employee headcount has been :d;usred
`for FY2070 to exclude inactive‘ contract or :o~op
`employees which were included in prior years
`
`
`
`Research In Motion Limited
`
`Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with
`the introduction of the BlackBerrg solution in 1999. Today, BlackBerrg products and services are used bu
`
`millions of customers around the world to stag connected to the people and content that matter most
`throughout their day. For more information about RIM (TSX: RIM; NASDAQ: RIMM), visit www.rim.com or
`www.blackberrg.com.
`
`l?.lackBerrg Smart
`Shipments
`(in millions of devices)
`
`,
`
`._Cl§GR" 87%.’
`
`.
`
`'
`
`CAGR 85%
`
`Fiscal 2010 Revenue Mix
`
`81% Devices
`
`14% Services
`
`2% Software
`3% other
`
`"CAGR (C’omrbo’und Annual Growth Rate) '
`a‘
`.
`.
`
`A
`
`M
`
`
`
`‘Financial Highlights
`
`(In thousands of U5. dollars, except per share amounts)
`
`U.S. GAAP
`
`Februarg 27,
`2010
`
`Februarg 28,
`2009
`
`March 1,
`008
`
`
`Statement of Operations data
`
`Revenue ............................................................................................. ..
`
`Gross margin ..................................................................................... ..
`Research 81 development and selling,
`general and administration ........................................................... ..
`Amortization ...................................................................................... ..
`
`Litigation ........................................................................................... . .
`investment income ............................................................................. ..
`Income before income taxes .............................................................. ..
`Provision for income taxes ................................................................. ..
`Net income ........................................................................................ ..
`
`$ 14,953,224
`
`$ 6,584,266
`
`$ 11,065,186
`
`$ 5,097,298
`
`$ 6,009,395
`
`$ 3iO80,581
`
`2,872,239
`310,357
`
`163,800
`28,640
`3,266,510
`809,366
`2,457,144
`
`2,180,399
`194,803
`
`—
`78,267
`2,800,363
`907,747
`$ 1,892,616
`
`1,241,310
`108,112
`
`~
`79,361
`1,810,520
`516,653
`1,293,867
`
`$
`
`Earnings per share
`
`Basic ................................................................................................. . .
`Diluted ............................................................................................... .
`.
`
`S
`3
`
`4.35
`4.31
`
`$
`$
`
`3.35
`3.30
`
`$
`$
`
`2.31
`2.26
`
`Operating data (percentage of revenue)
`
`46.1%
`6.2%
`13.5%
`
`51.3%
`6.0%
`14.7%
`
`44.0%
`6.5%
`12.8%
`
`Gross margin .................................................................................... ..
`Research and development ................. ..
`Selling, marketing and administration ................................................ ..
`
`
`
`Balance sheet data
`
`Cash. cash equivalents, short-term
`$ 2,343,996
`$ 2,238,847
`$ 2,869,723
`investments and long-term investments ......................................... ..
`$
`5,511,187
`$
`8,101,372
`$10,204,409
`Total assets ....................................................................................... ..
`Sharehoidersequitg .......................................................................... .. $ 3,933,566 3 7,602,663 $ 5,874,128
`
`
`
`
`
`
`
`Annual Revenue
`(In billions of U.S. dollars)
`
`Subscriber Accounts
`(in millions)
`
`Accounts
`(in millions)
`
`CAGR 71%
`
`CAGR 84°/o
`
`CAGR 88%
`
`. . . . .
`
`. . . . .
`
`international Subscriber
`
`815 . . . . . . . . . . . . . . . . . . . .
`\
`12 . . . . . . . . . . . . . . . . . . .
`
`.
`
`. . . .
`
`. .A. . . . . . .
`
`.
`
`. . .
`
`.
`
`. .
`
`.
`
`. .
`
`.
`
`. . .
`
`.
`
`.
`
`9 . . . . . . . . . . . . . . . . . . . . . . . .
`
`. . . . .
`
`13 . . .
`
`. .
`
`. . . .
`
`. .
`
`.
`
`, .
`
`. . .
`
`.
`
`. . . . .
`
`. .
`
`.
`
`. .
`
`1
`
`.
`
`6 ,
`
`..................
`o--II
`
`O4
`
`05
`
`06
`
`O7
`
`O8
`
`09
`
`10
`
`04
`
`OS
`
`06
`
`07
`
`08
`
`09
`
`10
`
`I
`
`2007
`
`2008
`
`2009
`
`«2010
`
`
`
`Management’s Discussion and Analysis
`of Financial Condition and Results of Operations ...................................................... ..
`Special Note Regarding Forward-Looking Statements.
`Overview ........... ..
`Sources of Revenue
`
`Fiscal 2010 Operating Results — Executive Summary ..... ..
`Critical Accounting Policies and Estimates ............................. ..
`impact of Accounting Pronouncements Not Yet Implemented ..
`Restatement of Previously Issued Financial Statements .......................................................... ..
`Results of Operations — Fiscal 2010 Compared to Fiscal 2009 and Fiscal 2008 ...................... ..
`Revenue ...................................... ..
`
`Gross Margin ........................ ..
`Research and Development ........ ..
`Selling, Marketing and Administration Expenses ................. ..
`Amortization Expense .................................................... ..
`Litigation ................... ..
`investment Income ............................................................................................ ..
`Income Taxes .................................................................................................... ..
`Net Income ........................ ..
`
`Common Shares Outstanding ................................... ..
`Fiscal year end February 28, 2009 compared to fiscal year ended March 1, 2008 ................................... ..
`Summary Results of Operations — Three months ended February 27, 2010 compared to three months
`ended February 28, 2009 ........... ..
`Selected Quarterly Financial Data
`Non~GAAP Financial Data ............................................................................... ..
`Financial Condition ..................................................................................... ..
`
`Legal Proceedings ............................ ..
`...... ..
`Market Risk of Financial Instruments ................................................................................................
`‘Disclosure Controls and Procedures and Internal Controls ........................................................................ ..
`Appendix A ......................................................................... ..
`Management’s Responsibility for Financial Reporting ..................... ..
`Report of Independent Registered Public Accounting Firm
`on internal Control Over Financial Reporting ......................................................... ..
`Report_t_of independent Registered Public Accounting Firm .......................... ..
`‘ Consolidated Balance Sheets .......................................... ..
`Consolidated Statements of Shareholders’ Equity ........................................................... ..
`Consolidated Statements of Operations .......................................................................... ..
`
`.1
`
`‘
`
`Consolidated Statements of Cash Flows
`Notes to the Consolidated Financial Statements ................................................................... ..
`Corporate information ...................... ..
`Shareholder Information .........................................................................................................................
`
`
`
`RESEARCH IN MOTION LIMITED
`
`MD&A
`
`Management’s Discussion and Analgsis
`of Financial Condition and Results of Operations
`for the Three Months and Fiscal Year ended Februarg 27, 2010
`
`April 1, 2010
`The following Management’s Discussion and Analgsis of Financial Condition and Results of Operations
`(“MD82A”) should be read together with the audited consolidated financial statements and the accompanging
`notes (the “Consolidated Financial Statements") of Research In Motion Limited (“R|M” or the “Compang") for the
`fiscal gear ended Februarg 27, 20iO. The Consolidated Financial Statements are presented in U.S. dollars and
`have been prepared in accordance with United States generallg accepted accounting principles (“U.S. GAAP”).
`All financial information in this MD82A is presented in US. dollars, unless otherwise indicated.
`
`RIM has prepared this MD8iA with reference to National Instrument 57-702 “Continuous Disclosure Obligations”
`of the Canadian Securities Administrators. Under the U.S./Canada Multijurisdictional Disclosure Sgstem, the
`Compang is permitted to prepare this MD82A in accordance with the disclosure requirements of Canada, which
`requirements are different from those of the United States. This MD&A provides information for the fiscal gear
`ended Februarg 27, 2010 and up to and including April I, 2010.
`
`Additional information about the Compang, including the Compang’s Annual Information Form, which is
`included in RIM’s Annual Report on Form 40—F, can be found on SEDAR at www.sedar.com and on the U.S.
`Securities and Exchange Commission's (“SEC”) website at www.sec.gov.
`
`Special Note Regarding Forward-Looking Statements
`This MD82A contains forward—looking statements within the meaning of the U.S. Private Securities Litigation
`Reform Act of I995 and applicable Canadian securities laws, including statements relating to:
`
`- assumptions and expectations described in the Compang’s critical accounting policies and estimates;
`
`-
`
`-
`
`-
`
`-
`
`-
`
`-
`
`-
`
`the Compang’s expectations regarding the adoption and impact of accounting pronouncements;
`
`the Compang’s expectations regarding the average selling price (“ASP”) of its Blacl<Berrg devices;
`
`the Compang’s estimates regarding revenue sensitivitg for the effect of a change in ASP;
`
`the Compang’s expectations regarding gross margin;
`
`the Compang’s estimates regarding its effective tax rate;
`
`the Compang’s estimates of purchase obligations and other contractual commitments; and
`
`the Compang’s expectations with respect to the sufficiencg of its financial resources.
`
`The words “expect”, “anticipate”, “estimate”, “mag”, “will”, “should”, “intend”, “believe”, “plan” and similar
`expressions are intended to identifg forward—looking statements. Forward~looI<ing statements are based on
`estimates and assumptions made bg 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. Mang factors could cause RIM's actual results, performance or
`achievements to differ materiallg from those expressed or implied bg the forward-looking statements,
`including, without limitation, the following factors, which are discussed in greater detail in the “Risk Factors"
`section of RIM’s Annual Information Form, which is included in RIM’s Annual Report on Form 40—F:
`
`-
`
`third—partg claims for Infringement of intellectual propertg rights bg RIM and the outcome of ang litigation
`with respect thereto;
`
`
`
`- R|M’s abilitu to successfullu obtain patent or other proprietaru or statutoru protection for its technologies
`and products;
`
`- RIM’s abilitu to obtain rights to use software or components supplied bu third parties;
`
`- potential impact of copuright levies in numerous countries;
`
`- RlM’s abilitu to enhance current products and develop new products on a timelu basis;
`
`-
`
`intense competition within RlM’s industru, including the possibilitu that strategic transactions bu RiM's
`competitors or carrier partners could weaken RIM’s competitive position or require RIM to reduce its prices
`to compete effectivelu;
`
`- RIM’s abilitu to establish new, and to build on existing, relationships with its network carrier partners and
`distributors, and its dependence on a limited number of significant customers;
`
`- RIM’s reliance on its suppliers for functional components and the risk