Revenue for the first quarter of fiscal 2007 was $613.1 million, up 9.2% from $561.2 million in the previous quarter and up 35.1% from $453.9 million in the same quarter of last year. The revenue breakdown for the quarter was approximately 71% for handhelds, 19% for service, 7% for software and 3% for other revenue. During the quarter, RIM shipped 1.2 million devices.

The total number of BlackBerry subscriber accounts in the quarter increased by approximately 680,000, in-line with the forecast provided in RIM’s press release on Q4 results, to approximately 5.5 million total subscriber accounts.

“RIM delivered a solid quarter with strong revenue, earnings and subscriber results,” said Jim Balsillie, Chairman and Co-CEO at RIM. “BlackBerry’s ongoing competitive dominance is driving strong growth in existing markets and fuelling substantial international expansion.”

GAAP net income for the quarter was $129.8 million, or $0.68 per share diluted, as compared with net income of $18.4 million, or $0.10 per share diluted, in the prior quarter. Operating expenses increased in-line with our expectations as RIM continued to invest in new product development and international market expansion. Adjusted net income excluding stock option expense was $134.2 million, or $0.70 per share diluted.

The adjusted net income and earnings per share do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other issuers. These adjusted measures should be considered in the context of RIM’s GAAP results.

Revenue for the second quarter of fiscal 2007 ending September 2, 2006 is expected to be in the range of $620-$650 million. Subscriber account additions in the second quarter are expected to be in the range of 675,000-700,000. GAAP earnings per share for the second quarter are expected to be in the range of 67-73 cents per share diluted. Adjusted earnings per share for the second quarter, which excludes estimated stock option expense of between $4.0-$5.0 million, are forecast to be in the range of 69-75 cents per share diluted.

The total of cash, cash equivalents, short-term and long-term investments was $1.26 billion as at June 3, 2006, compared to $1.25 billion at the end of the previous quarter, an increase of $6.5 million over the prior quarter. Uses of cash in the quarter included the acquisition of Ascendent Systems.

Reconciliation of GAAP net income to Adjusted net income
(United States dollars, in thousands except per share data)

For the three months ended June 3, 2006

GAAP net income, as reported $129,773


Stock option expense 4,400

Adjusted net income $134,173

Adjusted net income per share, diluted $0.70

Read the full press release here…