Blackberry 2012 Annual Report Download - page 214

Research In Motion Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
its BlackBerry 10 smartphones, which is currently expected to occur in the latter part of calendar year 2012. See “Cautionary Note
Regarding Forward-Looking Statements”.
The Company is in the process of completing the largest platform and organizational transition in the Company’s history and believes
that these transitions will better position the Company to achieve growth and to continue to be a leading company in the wireless
communications industry. As part of the ongoing efforts, the Company is also re-evaluating its product portfolio, operations,
manufacturing and research and development strategy. The Company currently anticipates introducing new devices in the smartphone
and tablet markets, as well as services and capabilities that better leverage its infrastructure.
The Company has also commenced the CORE initiative in the fourth quarter of fiscal 2012 which includes, among other things, a
comprehensive review of product management and the number of SKUs offered, the realization of supply chain and bill of material
efficiencies, marketing and advertising spending, partnership and licensing opportunities, organizational and management structure as
well as opportunities to leverage the BlackBerry infrastructure.
The Company expects the next several quarters to be challenging for its business. Based on the Company’s performance expectation
for the first quarter of fiscal 2013, diluted EPS is expected to be lower compared to the fourth quarter of fiscal 2012, excluding the
impact of charges related to the Cost Optimization Program and the Q4 Goodwill Impairment Charge, and the Company expects that
there will be continuing downward pressure on earnings in the coming quarters as it continues to invest in marketing programs and
works through the transition to the QNX-based platform that will be used in the next-generation of BlackBerry 10 smartphones, as
well as the Company’s fixed costs being spread over a lower volume of shipments. See “Cautionary Note Regarding Forward-
Looking Statements”.
Selected Quarterly Financial Data
The following table sets forth RIM’s unaudited quarterly consolidated results of operations data for each of the eight most recent
quarters, including the quarter ended March 3, 2012. The information in the table below has been derived from RIM’s unaudited
interim consolidated financial statements that, in management’s opinion, have been prepared on a basis consistent with the audited
consolidated financial statements of the Company and include all adjustments necessary for a fair presentation of information when
read in conjunction with the audited consolidated financial statements of the Company. RIM’s quarterly operating results have varied
substantially in the past and may vary substantially in the future. Accordingly, the information below is not necessarily indicative of
results for any future quarter.
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