Research in Motion (RIMM) Q3 November 2009 Earnings Notes
Press Release
-Revenue $3.92B (3.78B est.), +41% y/y. 10.1M units shipped
-EPS 1.10 (1.04 est.), gross margin 42.7%
-4.4 million net adds, 36 million subscribers
-$4.33 net cash/share
Guidance
-Q4 revenue $4.2-4.4B (4.11B est.), EPS 1.23-1.31 (1.12 est.)
-Gross margin 43.5%, net adds 4.4-4.7M, units 10.6-11.2M
-$275M cap ex, ASP $320
Conference Call
-first time ever they shipped over 10M units. 75M shipped-to-date
-530 carriers in 170 countries
-announced agreement with China Telecom
-webkit browser in CY2010
-Blackberry Messenger 5.0 in Q3
-purchased 12.3M shares $775M at average price of $63
-9M new devices activated
-$1.1B cash from ops
Q&A
-ARPU flat in the quarter
-carrier capacity “reckoning” going on right now
-small number of smartphone platform players
-Blackberry Messenger is exploding becoming “the youth thing”
-”Love what you do” ad campaign is a home-run in brand awareness (seemed defensive on it)
Net-net
-At $70 RIMM is trading at 13Xs $5 earnings power ex-cash
-Nice beat and raise quarter