Research in Motion Buys Swedish Design Firm

Research in Motion Limited (NASDAQ:RIMM) has announced that it has bought The Astonishing Tribe, which is a Swedish design company. The company is looking to augment the user interface and utility of its screens before the unveiling of its tablet PlayBook. The company has not revealed the deal size or the purchase price.

* Research in Motion Limited is planning to launch its 7 inch tablet during the first quarter of 2011.
* TAT’s UI has been used by almost 20 percent of the smartphones shipped in 2010.

David Yach, chief technology officer of Research in Motion Limited, said, “TAT is renowned for their innovative mobile user interface (UI) designs and has a long history of working with mobile and embedded technology. We’re excited that the TAT team will be joining RIM and bringing their talent to the BlackBerry PlayBook and smartphone platforms.”

TAT currently provides support to device manufacturers and developers working for Android operating system. Android OS belongs to Google. Paul Blomdah, co-founder of TAT, has said, “Of course we will honor our current agreements and service our existing customers and have taken all the necessary steps to keep the two commitments separated.”

Key Financial Stats

Valuation

* Price/Earnings(TTM)12.10
* Price/Cash Flow9.00
* Price/Sales (TTM)1.95
* Price/Book4.56

Financial Strength

* Quick Ratio (MRQ)1.60
* Current Ratio (MRQ)2.00
* LT Debt to Equity (MRQ)0.00
* Total Debt to Capital (MRQ)0.00
* Return on Equity40.30

Assets

* Asset Turnover1.70
* Asset per Employee.4M
* Inventory Turnover14.70

Per Share Data

* Earnings (TTM)5.20
* Current P/E Ratio2.00
* Cash Flow6.95
* Annual Dividend0.00
* Book Value13.75
* EBITDA24.10

Profitability

* Market Cap5.20
* Gross Margin (TTM)46.80
* Operating Margin (TTM)24.10
* Profit Margin (TTM) 17.20

Management Effectiveness

* Return on Equity (TTM)40.30%
* Return on Assets (TTM)27.80%
* Return on Investment (TTM)40.30%