Research In Motion Limited (RIMM)
Q1 2013 Earnings Call
June 28, 2012 5:00 pm ET
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Thorsten Gerhard Heins - Chief Executive Officer, President, Non-Independent Director, Member of Innovation Committee and Member of Strategic Planning Committee
Brian Bidulka - Chief Financial Officer
Mark Sue - RBC Capital Markets, LLC, Research Division
Kulbinder Garcha - Crédit Suisse AG, Research Division
Jim Suva - Citigroup Inc, Research Division
Amitabh Passi - UBS Investment Bank, Research Division
Rod B. Hall - JP Morgan Chase & Co, Research Division
Simona Jankowski - Goldman Sachs Group Inc., Research Division
Scott P. Sutherland - Wedbush Securities Inc., Research Division
Tal Liani - BofA Merrill Lynch, Research Division
Kevin Smithen - Macquarie Research
Daniel Ernst - Hudson Square Research, Inc.
Scott Thompson - FBR Capital Markets & Co., Research Division
Mark McKechnie - ThinkEquity LLC, Research Division
Ladies and gentlemen, thank you for standing by. Welcome to Research In Motion's First Quarter Fiscal 2013 Results Conference Call. [Operator Instructions] I would like to remind everyone this conference is being recorded today, Thursday, June 28, 2012, at 5:00 p.m. Eastern Time. And I would now like to turn the conference over to Mr. Paul Carpino, Vice President, Investor Relations. Please go ahead, sir.
Okay. Thank you, Luke. Welcome to RIM's Fiscal 2013 First Quarter Results Conference Call. With me on the call today are Thorsten Heins, our Chief Executive Officer; and Brian Bidulka, our Chief Financial Officer.
After I read our cautionary note regarding forward-looking statements, Thorsten will provide a business and strategic update. Brian will then review the first quarter results and our outlook. We will then open up the call for questions.
This call is available to the general public via call-in numbers and via webcast in the Investor Relations section at rim.com. The webcast includes supporting slides that can be viewed through your personal computer or your BlackBerry PlayBook tablet. A replay of the webcast will be available on the rim.com website. We plan to wrap up the call around 6:00 p.m. Eastern this evening in order to let as many people as possible ask questions. [Operator Instructions]
Some of the statements we will be making today constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian Securities Laws. These include statements about our plans, strategies and objectives and the anticipated challenges and opportunities in the coming quarters, our expectations with respect to product shipments, revenue, gross margin, operating expenses, our anticipated operating loss in Q2, net subscribers, ARPU and our cash position, our product development and marketing initiatives and timing, including our expectations relating to the launch of our BlackBerry 10 smartphone, plans and expectations relating to our CORE program and other statements regarding our plans, objectives and expectations.
We will indicate forward-looking statements by using words such as expect, plan, anticipate, estimate, may, will, should, forecast, intend, believe, continue and similar expressions. All forward-looking statements reflect our current view with respect to future events and are subject to risks and uncertainties and assumptions we have made.
Many risk factors could cause our actual results, performance or achievements to be materially different from those expressed or implied in our forward-looking statements, including our ability to enhance our current products and develop new products and services; risks related to further delays in new product introductions; risks related to intense competition, both in North America and internationally; our ability to maintain and grow our service revenue; our reliance on carrier partners and distributors; security risks and risks related to the collection, storage, transmission, use and disclosure of personal information; risks relating to network disruptions and other business interruptions; our ability to maintain or increase our cash balance in light of the challenge we face; our ability to implement and realize the benefits of our CORE program; our ability to retain and attract key personnel; our ability to maintain and enhance the BlackBerry brand; risks associated with our international operations; intellectual property risks; difficulties in forecasting financial results given the rapid technological changes, evolving industry standards, intense competition and short product life cycles that characterize our industry; and other factors set forth in the Risk Factors and MD&A sections of RIM's filings with the SEC and Canadian securities regulators. We base our forward-looking statements on information currently available to us, and we do not assume any obligation to update them except as required by law.
I will now turn the call over to Thorsten.
Thorsten Gerhard Heins
Thank you, Paul, and thank you all for joining the call today. I will let Brian talk about the specifics from the quarter, so I can address some of the challenges and actions that we're taking.
As discussed over the past few months, our first quarter results reflect the platform and products and vision we are going through, ongoing market challenges and the competitive dynamics we have seen across many of our markets. This was a challenging quarter for the company on many fronts, and I'm not satisfied with the financial performance we are reporting today. I want to assure you that we're not standing still and that we are continuing to accelerate our focus on our key initiatives.
I would like to address 4 key areas on this call, including Q1 sales, the updated timetable for our first BlackBerry 10 device, our outlook for the next couple of quarters and update on our operational and strategic review. So let me get started with Q1 sales.
In the U.S., revenue has stabilized, showing only modest declines, but churn has remained high. We are aggressively working with our carrier partners in this region to upgrade customers to BlackBerry 7, and we have had particular success with the BlackBerry Bold product. We're also working closely with our enterprise customers to maintain our enterprise subscriber base and upgrade these customers to BlackBerry 7.