Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the Research In Motion third quarter fiscal 2010 results conference call. (Operator Instructions) I will now turn the conference over to Edel Ebbs, VP of Investor Relations. Please go ahead.

Thank you. Welcome to RIM's fiscal 2010 third quarter results conference call. With me on the call today is Jim Balsillie and Brian Bidulka. After I read the required forward-looking statements disclaimer, Jim will provide a business and strategic update. Brian will then review the third quarter results and I will discuss our outlook for the fourth quarter of fiscal 2010. We will then open the call up 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 up the call before 6:00 p.m. Eastern this evening. 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 expectations and estimates with respect to product shipments, revenue, gross margin, operating expenses, CapEx, depreciation and amortization, investment income, earnings, seasonality, ASPs, and foreign exchange related matters for Q4 and beyond; our expectations regarding RIM's near and long-term tax rates, as well as the effect of changes to Canadian tax laws; our estimates of the number of net subscriber account additions and other non-financial metrics; our product development initiatives and timing; developments relating to our carrier partners; and other statements regarding our plans and objectives. 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 views with respect to future events and are subject to risks and uncertainties and assumptions we have made. Many factors could cause our actual results, performance or achievements to be materially different from those expressed or implied by our forward-looking statements, including risks relating to our intellectual property rights, risks relating to the uncertainty of general economic conditions, our ability to enhance our current products and develop new products and services, our reliance on carrier partners, third-party manufacturers, third-party network developers and suppliers; the efficient and uninterrupted operation of RIM's network operations centers; risks associated with our international operations; foreign exchange risks; risks relating to competition and other factors set forth in the risk factors and MD&A sections in 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 Jim.

Thank you, Edel. We are pleased with the results for the third quarter with record shipments of BlackBerry smartphones and revenue, diluted earnings per share, and net subscriber account additions that exceeded the ranges we forecasted in September. During the quarter, RIM's manufacturing team did an exceptional job of ramping production, which allowed us to ship over 10 million BlackBerry smartphones in a single quarter for the first time ever, which brings the total number of BlackBerry devices shipped to date to over 75 million. Revenue in Q3 grew 41% over the prior year to $3.92 billion and diluted earnings grew 60% to $1.10 a share. Approximately 4.4 million BlackBerry net subscriber accounts were added during the quarter up approximately 16% from the last quarter and up 70% from the same quarter last year. The BIS subscriber base has grown steadily over the past couple of quarters, reflecting successful execution of our plans to expand into broader market segments in over 80% of net new subscriber account additions came from non-enterprise customers again in Q3. RIM's enterprise subscriber base continued to grow in Q3 with particular strength in international markets and we are looking forward to launching new strategies to address additional enterprise and business market segments and drive increased growth in this segment in the coming months. During the third quarter, RIM's product development teams did an excellent job of launching three new BlackBerry smartphones, including the BlackBerry Storm 2, with Verizon and Vodafone, the BlackBerry Bold 9700 with multiple carriers in North America and around the world, and the BlackBerry Curve 8530 for CDMA networks. Storm 2 was announced in October and offers a number of enhancements over the original storm, including improved tactile feedback, increased memory, the addition of WiFi, and BlackBerry 5.0 handheld software, which delivers…

Thank you, Jim. Revenue for the third quarter ended November 28th was $3.92 billion, which was 11% higher than the $3.53 billion reported in the previous quarter and slightly higher than the guidance we provided on the September conference call. Handheld devices represented $3.2 billion, or 82% of revenue during the quarter, slightly higher than the $2.9 billion, or 81% in the previous quarter. Total devices shipped in the quarter were higher than Q2 at approximately 10.1 million units. This was higher than our forecast in September, primarily due to the success of Curve 8520. Approximately 9 million new devices were activated in Q3 either for new customers or for replacements and upgrades, not including phone only sales. We estimate that four weeks of channel inventory at the end of Q3 were slightly lower than Q2, and we expect channel inventory in Q4 to be similar to Q3. Device ASPs in the quarter were approximately $317, in line with guidance. Service revenue was $567 million, or 14% of revenue for the quarter, up $66 million from Q2. Monthly ARPU was similar to the prior quarter. Software revenue was approximately $67 million, or 2% of revenue. Gross margin for the third quarter was 42.7%, in line with the guidance we provided in September. Operating expense in the quarter was $791 million, or 7% over the -- up 7% over the comparable Q2 levels. R&D spending was $242 million, or 6% of revenue for the quarter, in line with our forecast. Sales, marketing, administration expense was approximately $465 million, up approximately 8% over Q2. Operating expenses include stock-based compensation expense of approximately $16 million. Investment income in the third quarter was approximately $6 million. Tax rate for the quarter was approximately 29.4%, in line with our forecast. Net income for the third…

Thanks, Brian. Before I discuss our outlook for Q4, 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 disclosed in our public filings. We expect to ship between 10.6 million and 11.2 million units in the fourth quarter of fiscal 2010 and for revenue to be in the range of $4.2 billion to $4.4 billion. This growth is being driven by ongoing strong sell-through of BlackBerry products throughout December and into the new year and continued ramping of new products, including the Bold 9700 and the Curve 8520 and Curve 8530. ASP in Q4 is expected to be similar to Q3 at approximately $320 We are targeting net subscriber account additions for the Q4 in the range of 4.4 million to 4.7 million. We are targeting gross margin for the fourth quarter to be approximately 43.5%. This is slightly above Q3 levels due to product mix and success of ongoing efforts to reduce bill of materials costs. As Jim mentioned, markets outside North America typically have similar or better gross margins than those within North America. It’s also important to note that it is not necessarily a directional relationship between ASPs and gross margin percentage. In fact, in many cases, our lower ASP products have higher gross margin percentages than the higher ASP products in the portfolio. Total operating expenses are expected to increase in Q4 by approximately 8% to 9% from Q3 levels. We expect R&D to increase by approximately 8% to 9% and sales, marketing, and administration expense to increase by approximately 9% to 10%. In the fourth quarter, we expect depreciation and amortization to be approximately $87 million and we expect CapEx to be approximately $275 million. The primary areas of spending for CapEx continue to be expansion of network infrastructure and R&D facilities. Investment income is expected to be approximately $6 million in Q4. We expect the tax rate to be approximately 29% to 30% in Q4 and beyond fiscal 2010, we expect the rate to be lower than this range as budget changes in Canadian corporate tax rates are implemented. We expect Q4 EPS to be in the range of $1.23 to $1.31 per share diluted. This reflects the reduction in shares outstanding as a result of the shares repurchased in the third quarter. I will now turn the call back to Jim.

Thank you, Edel. We are pleased with the strong financial performance in Q3 and the outlook for the remainder of the fiscal year. RIM's diversified product portfolio, strong brand, and software and services strategies have enabled our carrier and partner ecosystems put us in an excellent position to continue to show strong growth in the coming year. This concludes our formal comments. We would like to open the call up for questions. 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 the line of Gus Papageorgiou from Scotia Capital.

I know you don’t usually disclose this but I’m just going to ask it anyway -- can you tell us in terms of device volume, can you tell us the mix of CDMA devices versus GSM devices? And also, can you tell us which was the most popular selling device in the quarter?

We don’t break that out and so we are not going to start today. In terms of the top selling, again we don’t typically break them out by shipments. Clearly 8520 was a very successful product for us in the quarter but so was the Bold 9700 and Storm, as well as the existing portfolio. I’m not going to be able to break it out for you as to which one was the top seller.

Okay, thanks.

Your next question comes from the line of Jeffery Kvaal of Barclays Capital.

I was wondering if you folks might delve a little bit into what is underway at Verizon -- obviously a pretty heavy promotion from the November quarter away from you that seems to have come back. What types of market dynamics are you seeing there, what types of promotional support should we expect going forward and any comments on your happiness with the Storm 2 trajectory would be super.

Thanks, Jeff. Clearly Verizon is an important strategic partner and clearly we’ve had a lot of growth with them in the past year and also clearly we’d like that to continue and extend. I think the important macro elements that are at play really that number one, you’ve read the reports and the proportion of smartphones that are going to be of the total handheld market is really crossing 50% right now and how far -- I should echo on all the way to 100%. The only question is the time to getting there and that’s something we’ve said for a while. So the overall market is growing and Verizon shares that view for smartphones and we have a very important place to play in that. And I think what is at play here is you have very differing capabilities, you have very differing strategies between the different players, and different carriers have different strategies [would engage in that]. We have very special and distinct strategies with Verizon. We think it creates a lot of opportunity. The space is expanding. We think the richness of what we avail is clear. We think the alignment with them is clear. But the reality of it is there’s a lot of turbulence in the ecosystem right now. There’s a lot of turbulence in the channel and you just see this by the changes in strategies, the extensions in strategies. There’s a very, very small number of material platform players and it’s creating a lot of changes in application strategies. Some carriers are feeling quite concerned about how they maintain their relevance. We’d like to be an agent of that relevance for them and entrenching it and extending it in a value-added way. But the fact of the matter is there’s lots of shifts…

Could I ask if your outlook for the fourth quarter includes a decent amount of Valentine’s Day promotions, as it has in prior years?

You can absolutely be assured that the channel programs are very, very active and all the channel participants are very, very active. And the services strategies that go with that and the particular types of devices and new services strategies and new promotion strategies is super active. And there’s a lot of extension points we have yet to declare in all of this, so -- but you can absolutely presume that the momentum should -- what we saw last year was it carried very well, past Christmas and then through January and then Valentine’s really kept you going and -- you know, but every year is a new new because we are going into broader, deeper diffusion of the market and richer sets of services, so it seems to be pleasantly surprising us every year but we are never really quite so sure if it is going to be the same pleasant surprise the next year as it was the past year.

Thank you very much, Jim.

Your next question comes from the line of Maynard Um of UBS.

Can you just talk about the $3 to $5 and $7 to $10 subscriber fees you are getting for consumer and enterprise subscribers from operators? And do you think those ranges kind of widen, given competition? Or maybe even volumes as they continue to ramp? Because there’s been some concern out there that you could see some reductions to those rates and I just also wanted to clarify on your revenue guidance, if I just take the midpoint of your hardware units and the 320 ASP and grow my subscriber revenues, it seems to imply something else is actually going to see a larger up-tick. Just wondering if my math is right. Thanks.

I think on the ARPU, let’s start there -- I mean, we said it was flat in the quarter. And it does move around, depending on mix. We’ve been talking for some time about offering different tiered pricing strategies to grow the [addressable] market. We continue to do that with a lot of our partners around the world and also in North America. Those bands that we have talked about for quite some time, I mean, they are pretty -- I mean, those are still good numbers to work with. I mean, there’s times where particularly on the non-enterprise side, it’s going to be lower than that range, particularly when you start getting into some of the trial introductory BlackBerry plans and those kinds of things. But for the most part, I think that for your modeling, those are probably good ones to use for the next little while. In terms of the revenue guidance mid-point, it should actually work out okay. Maybe we can take it offline if you are having trouble but it should work out to the numbers we guided.

Okay, thanks.

Your next question comes from the line of Jim Suva of Citigroup.

Jim, you talked about you can’t force love and enterprise has clearly loved you guys for an extremely long time. Are you starting to see any of the competitors, such as Apple or Android, trying to date some of those enterprise people? Or how do you look at the competition on the enterprise?

Well, the enterprise -- first of all, there are some shifts happening in the enterprise and there has been some pretty moderate amounts at the lower entry and on [this stuff], but -- how do I put this -- you are going to see some very, very powerful offerings in both the SMB and with our Alt-N acquisition and in the low end enterprise area very, very soon which we think are going to be very, very powerful. Plus you couple it with the BES 5.0, the scalability, manageability, and you take the fact that we -- you know, our MVS is really enriched and you saw at Dev-Con we had the things like the Oracle J builder and Fusion that works with our push widgets. So now you can like just whip off apps because you’ve got such a rich framework and SAP and WebSphere are really gaming up to that too, so the richness of that. Plus the MVS and we have -- you know, that’s tracking very well. I just got the report of the new MVS installations in the chalk media stuff with the enterprise video type stuff, and that’s accelerating. And quite frankly, we have a very powerful set of extension strategies which our briefings with CIOs has just been absolutely game-changing in terms of their ability to manage costs and their whole computing architecture. Really leveraging the trusted BlackBerry mobile BPN and the fact that it could also be on WiFi. And so I am seeing very straightforward countering on the low-end, knock-out SMB plays, but actually the thing that most gets me out of bed on the B2B is the fact that there is a transformation happening in computing architectures where they need more capability but they need to take out costs, and where the antidote on sort of a re-architected form of corporate enterprises, which is pretty easy to evolve from what’s installed -- in fact, very easy to involve. So I would say the evolution of the B2B, the opportunity in addressable market has -- I would say rapidly expanded and strengthened is an understatement. But a lot of it, elements are in public, some are due to be launched soon. But in our CIO exchanges, I mean, it’s hard to sort of overstate the level of enthusiasm because what it does to liberate what they need to do their business in a way that takes down costs, current costs so much and enables where they want to go, they need to go. So I actually, though I am really excited about the B2C, I love the B2B because I have just got so much history in it and these are home run strategies. So I would say our competitive position in the B2B is dramatically strengthened in its architectural stuff but we have a lot of completion of R&D and implementation of the things these guys need.

And briefly, should we think about North America eventually getting back on the growth saddle or should we really think about the growth saddle being driven by international?

Both -- I mean, you know -- both. In North America, the level of strategic engagement with the carriers and the developers on the deep, rich integration -- because carriers -- the carrier now concierges the presentation. So they are not just intermediated. That’s the key. And it’s contextualized. Plus they integrate the billing. So they do the defining value-add and you just roll in, you run all these widget based apps that are pushing and multi-threaded in the background. And you just do better contextualization and they control that and they default it and they evolve it. So it’s very, very powerful. They love that in the B2C and the app guys love it too because of the rich service layers. And then on the B2B, that’s ready to go to another level and a lot of that leads out of North America naturally. But the international markets are showing such strength. But then there’s a lot of competitive turbulence, so it all rolls up a nice big number but there’s just so much bobbing and weaving underneath. But yeah, definitely North America is going to keep growing. It’s all growing. I mean, it’s subsuming other markets and it’s creating value, so we are just happy to be at the subsuming point, right? I mean, obviously -- it’s value, the carrier has got to have a key role, and people have new ways to monetize what they do but you’ve got to have a radio with smart capability, platform capability around it or it’s hard to make it happen.

Thank you and congratulations, Jim.

Your next question comes from the line of [Deepak Chopra] of [Sidoti Capital Markets].

I was wondering, could you provide a bit of granularity on the international subscriber additions in the quarter? I was hoping you could even provide us a number in terms of what was the percentage coming from international regions. And could you extend that and talk a little bit about China -- you know, is that expected to impact numbers in the next three months or when do you think they will start becoming a meaningful part of your subscriber adds?

We are not going to break out those numbers for you, Deepak. It’s not something that we typically do. Jim can talk about China, as he was just over there.

China, we announced the CT deal today, so that’s actually really, really good, and they are CDMA. And there’s three carriers and two are announced that we have partnered with, China Mobile and the CT. And we are supporting the architectures they want. We are also putting infrastructure there and manufacturing and R&D and localization and supporting value-added application guys and sales and channel stuff. But we have also -- we’ve got a job to do. We’ve got some enhancements in localizing the product. We’ve got some new air link stuff to get done and the TD and involve that. So we’ve got a lot of work to do but we are aligned with the interests of users and the carriers in the States. We are constructive long-term players. I think we have carefully invested there and got to a very good position and second half of next year, you know, and a lot of products and certification that we need and more that you may not expect and we got to get the [WAP] support for their WiFi and some other elements of localization to do, so -- yeah, I go over there lots, and I’ll keep going. I feel good about China and it’s got a role in something pretty helpful in the back half of the year next year. Yeah, the international stuff is going very, very well. Asia is kicking in big. Lat Am really kicking in big and Europe is really, really kicking in big. And North America is still going good. I mean, it’s -- you just hate zero basing this stuff, right? The problem is as you grow your capabilities as fast as you can but at the end of the day, you have to cut it off because you run out of hours in a day and so it’s that high cut-off threshold of zero-basing your capabilities, all the time trying to expand your capabilities thoughtfully and the hardest part of our job is rationing capacity to expansiveness because everyone can do more and wants more if we can support them the way they want to. That transition of the cell phone to the smartphone is happening at a power curve right now and it’s just the way it is.

Jim, could you talk about how your abilities to sort of manage bandwidth to the carriers, how is that impacting sort of the pricing plans you are seeing coming out of international markets and what do you think how the market here in North America will evolve?

Well, that’s a very good question and we’ve been sort of saying this for a couple of years and it’s one of those things where until these guys start hitting a wall, they don’t believe you. And they are having huge problems in Europe -- the problems in Europe are just like -- you have heard of problems in [QOS] in North America, right? Well, those are -- usually those are air link capacity issues and sometimes back-haul issues and back-haul is expensive. And it’s variable, so there’s a price per packet. But also [Shannon’s] law is a [bit per hertz] and it is theoretically pretty fixed by physics. So when you up these bit rates of these apps or you up the bit consumption of the apps or you up the bit rate of the spectrum, it doesn’t mean you get a big expansion of capacity. You get little bits. Now China, sure, the government gives China Mobile 50 meg nationwide for TD -- well, that’s pretty orderly but the rest of the world doesn’t really work that way. They get little bits here and little bits there, so we are very, very efficient with the networks and we’ve always did holistically because it managed, it made it faster if you half the packets and you double the battery life but now carriers are -- and now they are talking about thresholds of network consumption and base pricing and what is net neutrality versus this kind of stuff. And you can't repurpose spectrum like you can fiber. And so I think WiFi and side loading is going to be their friend. I think careful management of the network is coming on and I think the tricky part is the carriers are talking about it, they are upping capacity but…

Thank you, Jim.

Your next question comes from the line of Mike Abramsky of RBC Capital Markets.

Jim, you earlier said that there’s a small number of material smartphone players. That would sort of suggest maybe you view a shakeout coming given the high level of competitive intensity from maybe obviously into the leaders and the laggards. How do you see that sorting out and what in your view will differentiate those leaders versus the laggards, particularly in the consumer market?

I think what I said there’s a small number of smartphone platform players. If I didn’t, then I’ll clarify and say that’s what I meant. We viewed that you need the consolidated consumer electronics of an efficient, high performance smartphone and you need a services platform to make this digital services reality thing. And I think that’s proven out by where there’s been traction -- and I’m not talking feature phones. I’m talking smartphones and that’s that whole high ARPU, high value place to go. So I think it’s irrefutable it’s a very finite number of players. I don’t think -- I mean, it’s just math right now but there’s a bunch of feature phone guys but I don’t think that’s enough. Some carriers are trying to do creation of semi-platform stuff internally. I think that’s a tough game if it’s not aligned with a more rich global enhanced platform but they can try it. And I think it’s going to come down to how capable is the offering in terms of its richness, and you can define richness in a bunch of ways. You can define it in breadth of applications, you can define it in depth of services capability, you can define it in vertical integration of applications -- it can be defined a bunch of ways and the different strategies are pretty clear. I think one of the key elements is alignment with the elements that the application ecosystem and the content ecosystem and most importantly the carrier platform imperative is super critical and I think that’s what’s going to really shake it out. But it is a bit of a land grab right now and it’s a pretty finite number of guys and I don’t know what the future holds for sort of the feature phone,…

Okay, and then just very briefly, on the same line what kind of in your view prevents the industry from becoming more commoditized if some of these perhaps less valued players turn to price as a way to try to gain market penetration?

I mean, that’s always a risk but I also sit there and say you can also provide value like -- I mean, we talked about the web kit browser -- boy, when you can get that rendering with our transcoding and our infrastructure, you would be shocked how fast it is and how it shrinks the network consumption. You know, the contextualizers of BBM, the push at that and the -- I mean, the whole services layer is the payments APIs, the ad APIs for developers, for carriers, the concierging for the carrier platform, the BES capabilities these new sort of SMB things we are doing, the ALT-N with push BlackBerry, the geocoding stuff, the peer-to-peer APIs, the push APIs, the graphics enhancers, the tools -- I mean -- and this diversity of smartphones and special designs [inaudible] with carriers and channel programs and branding -- you know, I mean, the brand really went up a lot if you saw the brand reports and we didn’t get in any silly brand [bun] fights so -- and that really helped in sort of a good way. So I don’t know -- you have to earn your place every day and every day is busy and there’s more to do than there’s time to do but you’re in a good spot and you have to work every day to hold it and extend -- I see lots of extension points. I guess what I’m trying to say, there’s lots of innovation points so when will the world stop having innovation points? I don’t know. I can't foresee it right now but it’s possible, but I don’t see -- people [have been talking commodity] of this stuff for five years and it’s been anything but, so -- and I see the enrichness and diversity and enabling and complexity currently mushrooming, not rationalizing and shrinking. But it’s possible it could change that but I don’t see it.

Operator, I think we have time for one more.

Your last question comes from the line of Chris [Uvistosky] of TD Newcrest.

I’d probably ask you this one for the last question -- when I talk to investors and people in the industry, the biggest question that comes up for me, and I’m not sure even how to answer it myself so I am really interested in your answers -- consumer awareness of what makes BlackBerry different. I think as analysts and investors who follow the company so closely, we all know a lot of the things that make BlackBerry special but I am wondering how are you making consumers aware of what makes BlackBerry special? And in particular, the advertising that we see -- you know, love what you do -- it’s very brand oriented as opposed to feature oriented or anything like that. And I am sure you have your reasons for doing it -- I’m interested in knowing what you really think is the customer perception out there and what makes BlackBerry different, and how that might change over time?

Well, the BlackBerry -- first of all, the brand stuff has been going off the charts, so in terms of what it has done for brand awareness and purchase intensity, it’s been fantastic. So awareness of what it is and what it represents, that’s just been -- that campaign has been a home run. I mean, it’s been more than a home run for us, quite frankly, so -- I mean, that’s, what you want to do, I think a lot of aspects of BlackBerry is very viral, like BBM. I think the carriers have a lot to say in promoting it and hero-ing it and that’s helping a lot. And there’s elements where there’s a couple -- you know, we will enhance -- you know, when you go to print, you can go more feature like, and we do that. And when you go web, you go more feature like, so don’t just judge in terms of what you see on traditional TV media because there’s other forms of media where you bring that out and there’s a couple of ways where we can bring that out more intensely but it’s about representing a set of promises and I can just tell you in terms of all the elements of consumer awareness, of the value of BlackBerry, that campaign has been far exceeded our expectations. And there’s strategic extension points to that that are imminent in some evolutions and you will see some of it tomorrow. And you will see there’s evolutions of that at the right time based on the strategy that you will see late winter. And we complement it with other forms of media and you are just going to see -- there’s a whole layering of the advertising, branding, ease of discovery, U.I. on the…

All right, Jim. I appreciate the answers. That’s really detailed. Thanks a lot.

Operator, that’s all the time we have today. In closing, I’d like to remind everyone that there is a replay of this call available at 416-640-1917, pass code 4189541#, or you can listen to the call which has been recorded and is available on the investor events section of our website at rim.com. Thank you.