(MONEY Magazine) – GOOD NEWS The company's Blackberry, an elite staus symbol of the '90s, has gone mainstream. The pager has blossomed into 18 models, from a basic e-mailer to a combo with a phone and an organizer. RIM sold nearly 1 million of these handsets in its fiscal year ended Feb. 28, three times more than it did the year before. That led to the company's first annual profit--$52 million--and sent its shares up 83% this year.

BAD NEWS While Blackberry sales more than tripled, the number of users only doubled, to just over 1 million. That means 385,000, or 40%, of the Blackberrys sold last year went to existing users or are still on the shelves of service providers that buy devices from RIM and resell to customers. Neither scenario is good.

CONCLUSION Delete. To meet analysts' projections of $1.2 billion in sales for fiscal 2005, RIM will have to keep all of its current subscribers and sign up nearly 1.7 million more this year. Will it succeed? Maybe. But if it doesn't, at 39 times expected fiscal 2005 earnings, RIM's stock has a long way to fall. --STEPHEN GANDEL