This summary is based on the first quarter fiscal 2009 earnings call conducted by Research In Motion Limited (RIMM: chart) on June 25, 2008.

Management:

Vice President, Investor Relations: Edel Ebbs
Co-Chief Executive Officer, Director: James L. Balsillie
President, Co-Chief Executive Officer, Director: Michael Lazaridis
Chief Accounting Officer: Brian Bidulka

Key Investors Issues

- EPS were 84 cents a share compared to 39 cents a share last year.
- Net income was $482.5 million compared to $223.2 million for the same period last year.
- Revenue grew more than 100% to $2.24 billion.

First Quarter Highlights

Revenue was $2.24 billion, up 19% from $1.88 billion in the previous quarter.

- Handheld devices represented $1.84 billion, or 82% of RIM''s revenue, up from 81% of total revenue in the previous quarter.
- Total devices shipped of approximately 5.4 million were up from 4.4 million in the prior quarter.
- Approximately 4.2 million new devices were activated, either for new customers or for replacements and upgrades, not including phone only sales.

- Channel inventory was up from the fourth quarter.
- Device ASPs were approximately $341. The company expects ASPs in Q2 to be higher than in the first quarter at approximately $350.
- Service revenue was $292 million, or 13% of revenue, up $38 million from the fourth quarter.

- Monthly ARPU declined from the prior quarter.
- Software revenue was $67 million, or 3% of revenue.
- Other revenue, including non-warranty repairs and accessories, was $45 million, or 2% of revenue.

- Gross margin was approximately 51%, in line with expectations.
- Operating expenses increased by 22%, more than forecast last quarter.
- R&D spending was $128 million, or 6% of revenue, and selling, marketing, and administrative expenses increased to $327 million, and were 15% of revenue. Included in operating expenses is stock option expense of approximately $10 million.

The tax rate was approximately 27.5%, lower than forecast, primarily due to the impact of foreign exchange relating to certain balance sheet items.

The impact of this favorability in the tax rate was approximately 2 cents per share.

- Net income was $483 million, or 84 cents per share.
- Weighted average shares used in the EPS calculation for the quarter were 575 million. Actual shares outstanding at May 31st were 564 million.
- Total options outstanding at May 31st were 14.7 million.

- RIM''s balance sheet continues to be strong with substantial cash reserves and appropriate working capital balances. RIM generated approximately $504 million in cash from operations before working capital adjustments.
-The company funded its remaining balance of fiscal 2008 income taxes payable, approximately $460 million, in the first quarter. When combined with other working capital charges, this resulted in net cash provided from operations of $6 million.

- Capital asset additions, including intangible assets, were approximately $293 million, which was offset in part by cash provided by financing activities of $26 million, primarily related to the issuance of share capital resulting from the exercise of stock options.
- From a working capital perspective, trade receivables were up in the prior quarter, in line with top line growth, and DSOs were down from the prior quarter at 53 days.
- Inventory on-hand was approximately $462 million versus $396 million in the prior quarter. Inventories continue to be primarily raw materials and semi-finished goods to support demand for BlackBerry products.

The company continues to grow market presence and has over 375 carriers around the world offering BlackBerry products and services.

- Market share continues to grow and in first calendar quarter of 2008, according to IDC, U.S. share increased substantially and was more than double that of nearest competitor, whose share decreased from the prior quarter.
- The company added approximately 2.3 million BlackBerry net subscriber accounts, which was in line with April forecast and was 6% higher than the approximately 2.2 million net subscriber accounts added in the fourth quarter. This takes the total BlackBerry subscriber account base to over 16 million.

- The company continues to see strength in North America and the heavy promotion of the BlackBerry Curve 8330 by CDMA partners in the latter part of the quarter drove high numbers of net new subscriber account additions and upgrades throughout the U.S. and Canada. The company saw growth in international markets, particularly in Latin America and the U.K. The percentage of the subscriber account base outside of North America at the end of the quarter was approximately 33%.
- Growth in new market segments is strong and almost 60% of net subscriber account additions came from non-enterprise users, and these customers now represent over 40% of total base.
The new BlackBerry Bold was announced during the Annual Wireless Enterprise Symposium and received an exceptional response from carriers, from customers, partners, and the media.