RIMM Beats, Soars

Shares of Research In Motion (RIMM - Analyst Report) were up more than 21% after the close on Thursday as the company reported fourth-quarter results that topped consensus estimates.  

We maintain our buy rating as the company continues to outperform all our benchmark parameters, in particular operating cash generation.  The total net cash was $2.24 billion at the close of the company's fiscal 2009 reporting period.

Revenues for Q4 $3.46 billion, up 24.5% from $2.78 billion in the previous quarter and up 84% from $1.88 billion in the same quarter of last year. Net income was $518.3 million, or 90 cents per share diluted, compared with net income of $396.3 million, or $0.69 per share diluted, in the prior quarter and net income of $412.5 million, or $0.72 per share diluted, in the same quarter last year.

For full fiscal year, ending February 28, 2009, sales of $11.07 billion were up 84% from $6.01 billion last year.  Fiscal year 2009 net income was $1.89 billion, or $3.30 per share diluted, up 46.3% over fiscal 2008. The company shipped  approximately 26 million devices during fiscal 2009, including approximately 7.8 million devices in the fourth quarter.

Revenue for the first quarter of fiscal 2010 ending May 30, 2009 is expected to be in the range of $3.3-$3.5 billion. Gross margin for Q1 is expected to be approximately 43-44%. Net subscriber account additions in the first quarter are expected to be between 3.7 - 3.9 million. Earnings per share for the first quarter are expected to be in the range of $0.88-$0.97 per share diluted.