RIM nears end of earnings restatement

Research In Motion Ltd. has moved a step closer to satisfying Canadian regulators’ requirements for restated earnings in light of past stock-option practices at the company.
Maynard Um, analyst at UBS, said in a note to investors that the restatement of after-tax, net income through fiscal year 2006 was $248.2 million, less than the anticipated $258 million. Impacts to RIM’s 2007 earnings were immaterial, according to the analyst.
Though a formal U.S. Securities and Exchange Commission investigation continues, RIM’s announcement that it had filed eight documents required by the Canadian securities regulator brought it one step closer to resolving the issue, Um said.
However, it appears RIM remains shy of filing all the documents required by Canadian authorities and will continue to make regular updates until its obligations are completed.
Canadian authorities may see the just-announced filings as substantially fulfilling their requirements; a “management cease trade order” forbidding stock sales by RIM management will soon be lifted.
RIM’s stock traded downward less than 1% by midday, hovering around $151.40 per share, close to its 52-week high.