Blackberry 2008 Annual Report Download - page 18

RESEARCH IN MOTION LIMITED
management’s discussion and analysis of financial
condition and results of operations continued
FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 1, 2008
16
• continued use and expansion of the Internet;
• regulation, certification and health risks, and risks relating
to the misuse of RIM’s products;
• tax liabilities, resulting from changes in tax laws or otherwise,
associated with RIM’s worldwide operations; and
• difficulties in forecasting RIM’s quarterly financial results
and the growth of its subscriber base.
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, except as required by law.
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 time-sensitive
information including email, phone, short messaging
service (SMS), Internet and intranet-based applications.
RIM technology also enables a broad array of third party
developers and manufacturers to enhance their products
and services with wireless connectivity to data. RIM’s
portfolio of award-winning products, services and embedded
technologies are used by thousands of organizations around
the world and include the BlackBerry® wireless solution,
software development tools, and other hardware and
software. 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 its BlackBerry wireless
solution, which includes sales of wireless devices, 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®,
Novell® GroupWise®, MSN®/Hotmail, Yahoo! Mail®, POP3/ISP
email and others.
• the occurrence or perception of a breach of RIM’s security
measures, or an inappropriate disclosure of confidential or
personal information;
• RIM’s ability to manage production facilities and its
reliance on third-party manufacturers for certain products;
• RIM’s reliance on its suppliers for functional components
and the risk that suppliers will not be able to supply
components on a timely basis or in sufficient quantities;
• the continued quality and reliability of RIM’s products and
services;
• risks associated with RIM’s expanding foreign operations;
• restrictions on import and use of RIM’s products in certain
countries due to encryption of the products and services;
• effective management of growth and ongoing
development of RIM’s service and support operations;
• risks associated with acquisitions, investments and other
business initiatives;
• reduced spending by customers due to the uncertainty of
economic and geopolitical conditions;
󰜁󰜁 • intense competition within RIM’s industry, including the
possibility that strategic transactions by RIM’s competitors
or carrier partners could weaken RIM’s competitive
position or that RIM may be required to reduce its prices to
compete effectively;
• dependence on key personnel and RIM’s ability to attract
and retain key personnel;
• reliance on third-party network infrastructure developers
and software platform vendors;
• foreign exchange risks;
• changes in interest rates affecting RIM’s investment
portfolio and the creditworthiness of its investment
portfolio;
• government regulation of wireless spectrum and radio
frequencies;
• the costs and burdens of compliance with new government
regulations;