Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the Research In Motion fourth quarter fiscal 2007 results conference call. (Operator Instructions) I would like to remind everyone that this conference call is being recorded this Wednesday, April 11, 2007, at 5:00 p.m. Eastern Time. I will now turn the conference over to Adele Ebbs, Vice President of Investor Relations. Please go ahead.

Thank you, Operator. Welcome to RIM's fiscal 2007 preliminary fourth quarter and year end results conference call. I am Adele Ebbs, RIM's Vice President of Investor Relations. With me on the call today is Jim Balsillie, RIM's CEO, and Brian Bidulka, RIM's Chief Accounting Officer. Today’s call will focus on a discussion of RIM's preliminary results for the fourth quarter. These results are preliminary pending the filing of RIM's restated financial statements as a result of the recently completed review of RIM's stock option granting practices. While the review is now complete, the special committee and its advisors, together with the company and its external auditors, continue to do the work necessary to complete the restatement of RIM's previously filed financial statements and to file its interim financial statements for the second and third quarters of fiscal 2007. We do not expect a material change to these preliminary quarterly operating results or to our preliminary year end results as a result of the restatement. After I read the required forward-looking statements disclaimer, Jim will provide a business and strategic update. Brian will then review fourth quarter results and I will discuss our outlook for the first quarter of fiscal 2008. We will then open up the call for questions. I would like to note that this call is available to the general public by a call-in number and webcast. A replay of the webcast will also be available on the rim.com website. We plan to wrap the call up today by 6:00 p.m. Eastern. 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 RIM's review of its stock option granting practices, including statements regarding…

Thank you, Jim. I will now provide an overview of our preliminary results, and as Adele mentioned, these results are preliminary pending the restatement associated with the stock option review. As previously disclosed, we had originally anticipated updating our filings prior to our year end on March 3, 2007. Despite our best efforts, we determined that additional time is required. With respect to timing, we are working with our external advisors and will file our restated U.S. GAAP financials and become current with our other filings as soon as possible. The accounting impact on RIM's most recently filed Canadian GAAP statements does not result in a material adjustment and therefore the company does not intend to restate the previously filed Canadian GAAP financial statements. I would also like to note that we do not expect a material impact from this restatement on fiscal 2007 or fiscal 2008 operating results. Revenue for the fourth quarter ended March 3rd was $930 million and revenue for fiscal year 2007 was $3.04 billion, up 47% over the prior year. Handheld devices represented $683 million, or 73% of RIM's revenue during the quarter, down slightly from the 75% of total revenue in the previous quarter. This decrease in percentage was due to higher-than-expected service revenue and a delay in shipment to a couple of carriers scheduled for late in the quarter. Total devices shipped in the quarter of approximately 2 million were up from 1.8 million in the prior quarter. Sell-through in the quarter was strong with approximately 1.75 million devices being activated, which means we are selling almost two devices for each new subscriber account added. We expect this high level of upgrade sales to continue to grow as our subscriber account base grows. Total global channel inventory increased by approximately 250,000 units. Some…

Thanks, Brian. Before I discuss our outlook for Q1, I would like to remind everyone that these forward-looking statements reflect management’s best current estimates and should be taken in the context of the risk factors listed at the beginning of the call and outlined in our public filings. We are forecasting revenue for the first quarter of fiscal 2008 to be significantly higher than Q4, in the range of $1.025 billion to $1.075 billion. We expect hardware shipments to be over 2.25 million units and to be a larger percentage of sales in Q1 due to the continued success of Pearl and the ongoing ramp of 8800, existing customer demand for replacement and upgrade devices, and new products that are scheduled to launch in Q1 and early Q2. Where revenue falls within this range is dependent on the timely launch of these products. We expect software revenue to increase modestly in Q1. We are targeting net subscriber account additions for Q1 to be in the range of 1.125 million to 1.15 million. So far in Q1, we have seen net subscriber account additions tracking on average around 89,000 per week. Extrapolating this for the entire 13 weeks of the quarter would get us to approximately 1.16 million, at the high end of our range. However, this 89,000 run-rate includes the carrier quarter end week of March 31st, which is always abnormally strong, and the remainder of Q1 includes a number of holidays, such as Memorial Day in the United States and bank holidays elsewhere. Holidays have a meaningful impact on the run-rate that we see weekly. For example, as expected we saw a dip in net subscriber account additions last week with the Easter holidays in North America and other markets. Based on these factors, we do not believe it…

Thank you very much, Adele and Brian. In summary, Q4 was another record quarter and we are entering the new fiscal year with tremendous momentum in our business. The outlook for the first quarter fiscal 2008, with revenue, earnings, and subscriber account growth again forecast at record levels, reflects our market leadership position and the opportunities ahead of us. This concludes our formal comments. Due to the large number of people on the call, we ask that you please limit yourself to one question per person. We plan to end the call today by approximately 6:00 p.m. Would the operator please come on to handle questions?

(Operator Instructions) Your first question comes from John Bucher of BMO Capital Markets. Please go ahead.

Thank you. A question for you on the potential impact the new BlackBerry Connect 4.0 software could have on your BlackBerry subscriber growth rate. I think the understanding is that most of the current BlackBerry Connect users are BIS based rather than BES based subs, and with the new features that are available on BlackBerry Connect 4.0, in particular the security and synchronization features, do you think there is the potential for the availability of this new software to be a catalyst for BlackBerry subscriber growth? Is that factored into your thinking in your commentary on the hardware mix shift for next quarter and for the rest of the year? Thank you.

Thanks, John, that’s a fair question. Clearly in the business there is a tremendous amount of optionality in the business, and BB Connect and BB built-in is certainly one of them. It is not factored in the guidance how this is going to drive the change in mix, but clearly there is some optionality there. You are going to see it does absolutely give a lot more enterprise features. You are going to see some very aggressive stuff going on in terms of the BB Connect and built-in. Stay tuned for all the partners and all the activities at the wireless enterprise symposium and times around that. We have seen an interesting dynamic because the relationship with the carriers is intensifying because the profitability of BlackBerry subscribers is so strong, and the rallying around the BlackBerry platform is strengthening -- has strengthened really considerably in the past quarter, but there is also a desire for device diversity. There absolutely is -- you are going to see some really impressive and positive things happening in the BB Connect, both for BES and BIS, and I think in the BB built-in too, and I think you are going to see some real demonstration of that probably around and before the WES. I think we are going to see some positive developments. We have had some of the leading smartphone type companies who, beyond that are not BlackBerry companies, report in many of their carriers that the dominant use of the smartphones they sell are activated on BlackBerry through Connect. They may want more sales than that but it opens up some very interesting optionality in the business and it really strengthens partnerships. It has been a very good strategy for us in a whole bunch of ways, spoken and unspoken.

Your next question comes from Brant Thompson of Goldman Sachs. Please go ahead.

I was wondering if you could give us a little more color on a few things. Number one, how should investors be thinking about the degree of operating leverage you guys are targeting over the course of the year, and management’s goals related to that? Number two, you mentioned that some of the Pearl phones were 20%, 30% being sold without data plans. I just wanted to clarify; is that on T-Mobile specifically, and is there a way for us to handicap of the device sales that happen, how many of those are happening with data subscriber attached? Thanks.

There is remarkable, really exciting leverage in the business plan. There are some things that -- this is by far the most exciting time in the industry for us. There is also leverage going on but there is tremendous investment. I gave some indication. We are up to 270 carriers now and in each one of them, we have tremendous performance. You have heard about the device roadmaps we have. We also have quite a number of very powerful devices imminent into the market. Then, there has been some commentary, and Mike’s spent a fair bit of time on the application partners and what is going on there. As well, you are going to see some very exciting media capabilities on the BlackBerry and BIS and BES and the PBX type stuff. So the reason I am touching on that is we are definitely experiencing momentum and acceleration. Yes, there is leverage in it but there is also a tremendous amount of investment in scaling because it is such a rapidly emerging space. We are guiding over $1 billion in sales and yet in many respects, we feel we are at just the beginning of this business. Mike and I were talking over the weekend and we could not be more excited for the next 10 years where this is going to go. We feel like we are on the second inning of a nine-inning game and yet it has been so exciting the first inning-and-a-half. You feel you are just at the beginning. So yes, there is leverage and there is also growth. We balance giving you performance in a proven model but we are investing enormously aggressive in the future. I can only tell you guys that what you have seen to date in my view, you are…

Your next question comes from Gus Papageorgiou of Scotia Capital Markets. Please go ahead.

Just on what you were commenting on, Jim, I wonder if you would tell us a little bit more about how the carriers are viewing RIM and the BlackBerry platform. It seems to me that it has historically been viewed as a niche application for business. Lately, as a result of the success of the Pearl, are you seeing the carriers trying to move the platform more into the mainstream and becoming more active in doing that? What kind of discussions have you had with the carriers? What kinds of trends are you seeing?

It is a timely question because it is like a switch went off sometime. We were talking about this at the board meeting today. It is like a switch went off sometime in the last two or three months. It is hard to explain. It is like whether you are niche or you are a good friend who became the most coveted friend or something. In our world, we just keep focusing on the fundamentals and we believe in the long-term outcome but we are not really driven by this sort of externalities. But it is hard not to not notice. It is like a light went off. I like to think that it is because we have been pointing out the profit potential. One partner, they are almost $3 billion run-rate on BlackBerry revenue and we are trying to double it within the next eight or nine to twelve months. So that is high margin, $3 billion revenue. Arguably, two-thirds of it is EBITDA. When you guys do your models and how you multiply that and put a peg on it for a carrier, these carriers are starting to realize that a reliable platform with a trusted partner who sells through you to make you a strategic platform and respects the consumption of your network, those all sound like nice business case things but the bottom line of it is, you make a lot of money on it and it is a sustainable model. I like to think it is just -- there is a real intense focus on carriers for profit right now and they have seen that the strategic BlackBerry platform is not just a browser pipe model to disintermediate them. It is a true strategic platform and it is proven in the money. But then also,…

Your next question comes from Peter Misek of Canaccord Capital. Please go ahead.

Thank you. Jim, you alluded to the media platform. Can you help us understand that on the consumer side, exactly how the carriers are planning to roll that out and how you are planning to roll that out? If you could also help us out, a lot of discussion on how on the enterprise, you guys are becoming a data platform. Maybe if you could give us some concrete examples of that, that would be great. Thank you.

Well, those are two very, very good and very different questions. I will do the second one first because I remember it better. Something like 70% of the BlackBerries are on MDS, and so the applications -- and we talked a little bit about them -- for CRP and CRM and GPS and IT management and all that, they are going like crazy and the whole platform extension, I think people who are even close to the story may not know even 10% of what BlackBerries are really being used for out there. It is that powerful. Then what is happening is this whole PBX thing has become incredibly powerful because it is arguably the most valuable corporate asset that is totally not managed and controlled because all cell phone calls are not routed and managed through any IT infrastructure, and 75% to 80% of PBX calls go into voicemail. So in a functioning organization, that is just -- it takes us back where e-mail was five, six, seven years ago. As well, I would really reiterate there is amazing evolutions also happening from BIS in a data platform, both in e-commerce ways, stored value ways, certainly the GPS. We have seen a lot of stuff like Yahoo! Go and e-mail and IM and search, and we have a new BIS release coming in very imminent also, and you are going to see some striking levels of carrier intimacy in that. So as a data platform, the IT security officer separates behind the firewall and not behind the firewall for purposes of maintaining their store. But for purposes of the user, they are just saying do the packets get to me that let me do what I want to do, whatever that is I want to do, and am I…

Your next question comes from Maynard Um of UBS Securities. Please go ahead.

Thank you. First, if I could, a clarification on what I presume are one-time administrative expenses. What was the dollar amount, and are those inclusive or exclusive of the $10 million Canadian from Jim and Mike? And then the question; given your cash balance, and presumably nearing filing with SEC and the Canadian Government, can you just share your stance on potential share repurchases or stock splits, or does the formal investigation preclude you from those types of actions? Thanks.

On your first question, we have not broken out what the amount is. I think it is safe to say the impact on net income was in the single digit millions, but that is about all I can tell you. On the question about stock splits and buy-backs and all those types of things, those are things that we would have to press release if they have been approved but again, I cannot really tell you much about our plans there at this time.

Those are things that we are clearly looking at and assessing on an ongoing basis. Definitely we have done some buy-backs in the past and we have done splits in the past. We are not religious about hording or anything like that. We take these things very seriously. As a board, they are deliberating on them and definitely that is something that we assess on an ongoing basis, how we make sure that the stock is priced appropriately so that it is successful to shareholders, and the capital is optimally deployed for the shareholders. There is no horde mentality or anything. We have bought them back in the past. We have done some strategic acquisitions and these are things we keep on going on with.

Your next question comes from Jeffery Kvaal of Lehman Brothers. Please go ahead.

Thanks very much. First, I wanted to know where Dennis might be this evening.

Dennis? Well, Dennis was just working on -- Dennis was working a lot on some of the finance stuff on a bunch of the key carriers. What has happened is as we went to 270 carriers, one of our COOs, Don Morrison, came into my office and said “I’m really enjoying these 25 direct reports that I have as you’re looking for 100% growth in the business” and really, on the execution side, as the sales grow and the revenue grow, we launch these carriers, we really need more operating drive in the company. That is the area that he has been focusing more and more on, and that is what we are really pushing him on now.

Okay, great. Secondly, would you talk a little bit about gross margins by division? Talk about them in specific number terms, but are they stable within each of the segments that you disclosed?

Adele or Brian.

Jeff, it is primarily mix related. Like in hardware, for example, the mix can have an impact, as we’ve talked about in the past. We do not break it out, as you know. I think we have talked before that there is some scale in the service business and you see that over time in gross margin. Software is pretty stable.

Great, and then lastly, you guys came in a little lighter on units this quarter than I think you might have expected, and there was also some inventory build in the channel. Anything in particular going on there that we should be thinking about? You guys are also talking about a big selling quarter for May and beyond as well.

On the inventory side of things, I think the units increased by 250,000 units, but on a run-rate basis, if you look at how fast the sell-through is growing on a weeks basis, it really has stayed the same. We think it is at a comfortable level. In terms of what was going on with the shipments in the quarter, there were some shipments scheduled late in the quarter with a couple of carriers, actually, that just got pushed out into Q1.

Your next question comes from Deepak Chopra of National Bank Financial. Please go ahead.

Good evening. I was wondering if you could talk a little bit about momentum in international markets versus North American markets. I saw this quarter it picked up quite a bit. What are the trends you see there for the next year or so?

That is a fair question. It is like -- the funniest thing happened is though the emerging markets are growing fast, it is like the turbo charge has happened in North America and Western Europe. It is like there is -- I would have expected the real acceleration to be coming from emerging markets and new carriers, et cetera, but it is almost like -- I don’t know. Maybe it’s for the first two or three years you see it as a great B2B thing and then the niche B2C thing, and they just go after low-hanging fruit, but something has happened with most of the North American carriers and most of the Western European carriers that they see us as a core product for the broad markets. I kind of have to say moving into a wider part of the pyramid of sort of relevance in our main North American and Western European markets has been the main momentum shift in the last two or three months. It is not just we are bringing on new carriers and they have great business plans and we are all excited and we are localizing and we are launching, we are doing programs and all that great stuff and it is a huge amount of fun. The dial is really starting to get moved by the big players and the longer standing players, like was commented earlier by Gus, it is almost like you are moving a little out of a niche segment to a main meal segment, and that changes everything in terms of feature products and hero products and broad this and broad that. I think that is generally where the momentum is coming from, is our biggest and most long-standing partners who have a different approach. That is why I was metaphorically talking about that neighbor/friend thing who thought you were okay and all of a sudden thinks you are the greatest thing going for whatever reason. There has been a shift in perception. We don’t really think we have changed so much. Maybe we have a little bit, but there has been an awareness of our longstanding partners that maybe we can put a zero on the level of activity and results we get from RIM if we put our shoulder more to it, because they are all under very, very strong pressure to drive EBITDA. So if you are a catalyst to their success quotient, there seems to be that real focus on income for carriers beyond penetration right now, as they have hit the thresholds of penetration. Our hottest markets, U.S. and the key Western European countries in the last two or three months. We are seeing big opportunities there and we are pushing hard on them, not to the exclusion of the other ones but we think they are the ones that can really move the big numbers.

Extending that, at what point do you think consumer will outstrip enterprise, given just the overall size of the consumer market globally?

Though we are incredibly focused on the enterprise and it is growing really fast and the platform play is solid and the reliability and the availability and the security and the partnerships and all that kind of stuff is super solid, and we have a couple of surprises to really bring to that equation, which I think we are going to do some enormous delighting. If you really knew what we were doing on the consumer side to just open up that big market, I am hard-pressed not to see that just being such an engine because we are so far ahead of the alternatives and it is such a big addressable market and it is so straightforward for us to fulfill into it. And there is an irony, which I sort of talked about on this call before, and I will maybe wrap up with it on this, is the door to the consumer is through the enterprise, not vice versa, in my experience because the service reliability and the support reliability, at least in that you have an IT department supporting 500 users on an enterprise, even if there is some QA issues, et cetera, et cetera, but if you have a product with any element of reliability from a data platform, and you have 500 relatively unsophisticated users calling into your call center because of that, that absolutely crushes a carrier’s customer satisfaction, profitability and support metrics. So the irony is though enterprise is our huge history and we are staying focused on it, we have had six or seven years of training wheels to get the system right to arguably also support, through the same channel and through the same carriers, and fundamentally much the same platform, the non-enterprise market, and that is a pretty big market it and of its own right, just in total people. If I had to bet, I don’t think it will be too long before consumer outsells enterprise. I think it might be a little sooner than people imagine but it is just going to be race of who is growing more extra fast.

Operator, I’m showing a little after 6:00, so I think that we need to wrap up.

Would you like one more question, or --

No, we’re done. We’re good.

Ladies and gentlemen, this concludes the conference call for today. Thank you for participating. Please disconnect your lines.