Blackberry 2005 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2005 Blackberry annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 76

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76

9
Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)
should be read together with the audited consolidated financial statements and the accompanying notes
(the “Consolidated Financial Statements”) of Research In Motion Limited (“RIM” or the “Company”) for the
fiscal year ended February 26, 2005. The Consolidated Financial Statements have been prepared in accordance
with United States generally accepted accounting principles (“U.S. GAAP”). To the extent applicable to the
Consolidated Financial Statements, these principles conform in all material respects with Canadian generally
accepted accounting principles (“Canadian GAAP”), except as described in the “Commentary on Material
Differences in the Company’s Fiscal 2005 Financial Statements under U.S. GAAP compared to Canadian GAAP”.
All financial information herein is presented in United States dollars, except for certain financial information
contained in tables which is expressed in thousands of United States dollars, and as otherwise indicated.
RIM also prepares separate consolidated financial statements in accordance with Canadian GAAP, in United
States dollars, which are filed with Canadian regulatory authorities and are made available to all shareholders.
RIM has prepared the MD&A with reference to National Instrument 51-102 “Continuous Disclosure Obligations”
of the Canadian Securities Administrators. This MD&A is prepared as of May 3, 2005. The MD&A should be
read in conjunction with the Consolidated Financial Statements.
Additional information about the Company, including the Company’s Annual Information Form, can be found
on SEDAR at www.sedar.com and on the Securities and Exchange Commission’s website at www.sec.gov.com.
Special Note Regarding Forward-Looking Statements
This MD&A contains forward-looking statements within the meaning of the U.S. Private Securities Litigation
Reform Act of 1995, including statements relating to:
•the Company’s expectations with respect to the average sales price and monthly average revenue
per unit for its BlackBerry handhelds in fiscal 2006;
•the Company’s estimates regarding earnings sensitivity relating to warranty expense;
•the Company’s estimate regarding revenue sensitivity for the effect of a change in average selling
price (“ASP”) on its handheld revenues;
•the Company’s expectations relating to migration of its direct BlackBerry subscriber base to its
carrier customers;
•RIM’s revenue and earnings expectations;
•anticipated growth in RIM’s subscriber base;
•the Company’s expectations with respect to the sufficiency of its financial resources; and
•the Company’s outlook and strategy for fiscal 2006.
For the years ended February 26, 2005, February 28, 2004 and March 1, 2003