Blackberry 2004 Annual Report Download - page 12

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Research In Motion Limited • Incorporated Under the Laws of Ontario (In thousands of United States dollars, except per share data, and except as otherwise indicated)
•RIM’s ability to establish new, and to build on
existing, relationships with its network carrier
partners;
•reliance on third-party suppliers;
•effective management of growth and ongoing
development of RIM’s service and support
operations;
•a breach of RIM’s security measures, or an
inappropriate disclosure of confidential
information;
•competition;
•reduced spending by customers due to the
uncertainty of economic and geopolitical
conditions;
•RIM’s dependence on a limited number of
significant customers;
•fluctuations in quarterly financial results;
•reliance on third-party network developers;
•foreign exchange risks;
•changes in interest rates affecting RIM’s
investment portfolio and the creditworthiness of
its investment portfolio;
•the continued quality and reliability of RIM’s
products;
•RIM’s ability to manage production facilities
efficiently;
•risks associated with foreign operations;
•dependence on key personnel;
•continued use and expansion of the Internet;
•regulation, certification and health risks;
•control of RIM shares by management; and
•tax liabilities associated with RIM’s worldwide
operations.
These factors should be considered carefully, and
readers should not place undue reliance on RIM’s
forward-looking statements. RIM has no intention
and undertakes no obligation to update or revise any
forward-looking statements, whether as a result of
new information, future events or otherwise.
Overview
RIM is a leading designer, manufacturer and
marketer of innovative wireless solutions for the
worldwide mobile communications market. Through
the development of integrated hardware, software
and services that support multiple wireless network
standards, RIM provides platforms and solutions for
seamless access to email, phone, SMS (short
message service), organizer, Internet and intranet-
based corporate data applications. RIM also licenses
its technology to industry leading handset and
software vendors to enable these companies to offer
wireless data services using the BlackBerry
Enterprise Server (“BES”) and BlackBerry Web
Client (“BWC”). RIM technology also enables a
broad array of third party developers and
manufacturers to enhance their products and
services with wireless connectivity. RIM’s products,
services and embedded technologies are used by
thousands of organizations around the world and are
commercially available through a variety of offerings
including the BlackBerry wireless platform, the RIM
wireless handheld product line, technical support
services and the BlackBerry Connect Licensing
Program. The Company’s sales and marketing efforts
include collaboration with strategic partners and
distribution channel relationships to promote the
sales of its products and services as well as its own
supporting sales and marketing teams.
Sources of Revenue
RIM’s primary revenue stream is generated by its
BlackBerry wireless solution, which includes sales
of wireless handhelds, software and service. The
BlackBerry wireless solution provides users with a
wireless extension of their work and personal email
accounts, including Microsoft Outlook, Lotus Notes,
MSN/Hotmail and POP3/ISP email. In addition, the
BlackBerry wireless solution, through its Mobile
Data Service functionality, allows users to access
data from their enterprise and intranet applications
using the BlackBerry architecture.
RIM generates revenues from sales of BlackBerry
Wireless Handhelds, which provide users with the
ability to send and receive full-length wireless
messages and data from a wearable device. RIM’s
BlackBerry Wireless Handhelds also incorporate a