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Research in Motion (RIMM) Q4 February 2010 Earnings Notes

March 31st, 2010 No comments

Press Release
-Revenue $4.08B ($4.31B est.), +18% y/y, 10.5M units shipped (11M CS est.)
-EPS 1.27 (1.28 est.), gross margin 45.7%
-4.9M net adds, 41 million subscribers, ASP $311 ($320 CS est.)
-$5.11 net cash/share

Guidance
-Q1 revenue $4.25-4.45B (4.33B est.), EPS 1.31-1.38 (1.23 est.)
-Q1 11.2-11.8M units, ASP $305-310, gross margin 44.5%
-Q2 will have similar ASP as Q1
-2H-FY margins will be in low 40s with higher ASPs due to product mix/new launches

Conference Call
-units lower than they guided last quarter (10.6-11.2M) due to “one-time” carrier inventory adjustment
-inventory at 4 weeks, will be even lower in Q1
-10M activations in the quarter
-“If you saw the roadmap, you’d be blown away”
-launching new products hurts gross margins initially

Net-net
-Pros: good guidance for next quarter, ASPs guided higher in back half of year with new products
-Cons: revenue deceleration 41% last quarter to 18% y/y, ASPs weakening for now, inventory adjustment issues even in Q1
-At $71 after-hours, $5.11 net cash + $5 EPS power = 13.2Xs EPS

Key Questions
-Competitive landscape getting tougher with new Android phones from HTC/Sprint, HTC/Google, and Motorola. June launch of new iPhone with possible front-facing camera and higher resolution screen
-Can the RIMM OS compete as Google’s “free” Android OS gets better and iPhone App eco-system continues to ramp?
-Will carriers balk at monthly revenue share model at some point vs. “free” competition?

Categories: News

NPD U.S. February 2010 Videogame Sales

March 11th, 2010 No comments

Games $1.48 billion (-15%)
Hardware $534.2 million (-20%)
Software $736.7 million (-15%)
Accessories $206.1 million (-1%)

DS 613,200
Xbox 360 422,000
Wii 397,900
PlayStation 3 360,100
PSP 133,400
PlayStation 2 101,900

Title / Platform / Publisher / Release Date / Units sold
1. BioShock 2 / 360 / Take-Two / Feb-10 / 562,900
2. New Super Mario Bros. Wii / Wii / Nintendo / Nov-09 / 555,600
3. Call of Duty: Modern Warfare 2 / 360 / Activision / Nov-09 / 314,300
4. Just Dance / Wii / Ubisoft / Nov-09 / 275,400
5. Wii Sports Resort with Wii Motion Plus / Wii / Nintendo / Jul-09 / 272,500
6. Call of Duty: Modern Warfare 2 / PS3 / Activision / Nov-09 / 252,800
7. Mass Effect 2 / 360 / Electronic Arts / Jan-10 / 246,500
8. Dante’s Inferno: Divine Edition / PS3 / Electronic Arts / Feb-10 / 242,500
9. Dante’s Inferno / 360 / Electronic Arts / Feb-10 / 224,700
10. Heavy Rain / PS3 / Sony / Feb-10 / 219,300 /

Categories: News