Blackberry 2012 Annual Report Download - page 77

Given the dynamics of the wireless communications industry, the Company’s financial results may not follow any past trends. In
particular, the Company’s entry into new markets or changes to the Company’s technology, such as its entry into the tablet market
and its transition to the BlackBerry 10 platform, can increase the difficulty of forecasting financial results. Significant unanticipated
sales and marketing, R&D, IT, professional and other costs, write downs and other impairment charges may be incurred or take place
in a single quarter, which can affect results. Additionally, many of the Company’s products are, among other things, subject to long
development, new product approval and certification, and sales cycles. In addition, the Company is engaged in an industry that is
highly competitive and rapidly evolving, and has experienced, and expects to continue to experience, intense competition from a
number of companies. As a result, if expected revenues are not realized as anticipated, if new product introductions are delayed or are
not as well received by the market as anticipated, or if operating expenses are higher than expected, the Company’s actual financial
results could be materially adversely affected. These factors can make it difficult to predict the Company’s financial results.
Consequently, actual results may differ materially from those expressed or implied by the Company’s forward-looking statements and
may not meet the expectations of analysts or investors, which can contribute to the volatility of the market price of the Company’s
common shares. Despite the Company’s cautions in each earnings release, earnings conference call and securities filing that contains
forward-looking statements that the risks relating to such statements should be considered carefully and that shareholders should not
place undue reliance on forward-looking statements, if the forward-looking statements are not realized, or the Company updates its
forward-looking statements at a later time, the Company may nevertheless be subject to potential securities litigation or enforcement
action.
Between May and August 2011, several purported class action lawsuits were filed against the Company and certain of its current and
former officers in the U.S. District Court for the Southern District of New York, two of which have been voluntarily dismissed. The
plaintiffs have alleged that during the period from December 16, 2010 through June 16, 2011, the defendants made materially false
and misleading statements regarding RIM’s financial condition and business prospects, and seek unspecified damages. Regardless of
the Company’s views of the merits of this action or any similar actions that may be filed against the Company, securities litigation is
costly, time-consuming and may be unpredictable, and could divert the attention of management and key personnel from the
Company’s business operations. If the Company is unsuccessful in its defense of securities litigation claims or is unable to settle the
claims, the Company may be faced with significant monetary damages that could have a material adverse effect on the Company’s
business, results of operations and financial condition. Administrative or regulatory actions against the Company or its employees
could also have a material adverse effect on the Company’s business, results of operations and financial condition.
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