Revenue and Research In Motion: Fool by Numbers
By Anders Bylund
December 21, 2007
Recommended (2)
On Dec. 20, mobile gadget designer Research In Motion (Nasdaq: RIMM) released third-quarter 2008 earnings for the period ended Dec. 1.
- The revenue growth continues unabated, this time 22% over the take from the previous quarter and twice the sales of the year-ago period.
- Net and operating margins came up aces, at levels not seen in the past two years.
- Just to pick a nit, this was the fifth quarter in a row of gently declining gross margins. That's an industry-wide malaise, though -- both Motorola and Nokia have experienced a similar swoon over the past year or so, as average selling prices everywhere are heading south.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q3 2008
|
Q3 2007
|
Change
|
|
Sales
|
$1,673
|
$835
|
100.3%
|
|
Net Profit
|
$370
|
$175
|
111.5%
|
|
EPS
|
$0.65
|
$0.31
|
109.7%
|
|
Diluted Shares
|
573.7
|
569.5
|
0.7%
|
Get back to basics with the income statement.
Margin Checkup
|
Q3 2008
|
Q3 2007
|
Change*
|
|
Gross Margin
|
50.7%
|
54.2%
|
(3.5)
|
|
Operating Margin
|
29.3%
|
26.9%
|
2.4
|
|
Net Margin
|
22.2%
|
21.0%
|
1.2
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q3 2008
|
Q3 2007
|
Change
|
|
Cash + ST Invest.
|
$1,597
|
$893
|
78.8%
|
|
Accounts Rec.
|
$1,037
|
$449
|
131.2%
|
|
Inventory
|
$340
|
$216
|
57.4%
|
|
Liabilities
|
Q3 2008
|
Q3 2007
|
Change
|
|
Accounts Payable
|
$230
|
$111
|
107.3%
|
|
Long-Term Debt
|
$7.2
|
$6.6
|
9.4%
|
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q3 2008
|
Q3 2007
|
Change
|
|
Cash From Ops.
|
$521
|
$215
|
141.8%
|
|
Capital Expenditures
|
$97
|
$64
|
50.5%
|
|
Free Cash Flow
|
$424
|
$151
|
180.5%
|
|
Owner Earnings
|
$322
|
$146
|
120.9%
|
Free cash flow is a Fool's best friend.
Competitive Context
|
Market Cap
|
Trailing P/E Ratio
|
CAPS Rating
|
|
Apple (Nasdaq: AAPL)
|
$169,130
|
49.1
|
****
|
|
Nokia (NYSE: NOK)
|
$148,330
|
16.1
|
*****
|
|
Research In Motion
|
$66,300
|
77.4
|
***
|
|
Motorola (NYSE: MOT)
|
$37,220
|
81.0
|
**
|
|
Palm (Nasdaq: PALM)
|
$677
|
39.9
|
*
|
Using the latest reported numbers from Capital IQ.
Keep your partners close and the competition in your vest pocket.
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