Blackberry 2013 Annual Report Download - page 209

Download and view the complete annual report

Please find page 209 of the 2013 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 235

  • 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
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235

Research In Motion Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
2012 and the quarter ended March 3, 2012. The Company believes that it is meaningful to also provide a comparison between the
fourth quarter of fiscal 2013 and the third quarter of fiscal 2013 given that the Company’s quarterly operating results vary
substantially.
Operating expenses increased by $27 million, or 2.5%, to $1.09 billion, or 40.6% of revenue, in the fourth quarter of fiscal 2013,
compared to $1.06 billion, or 38.9% of revenue, in the third quarter of fiscal 2013, primarily attributable to an increase in advertising
and promotion spend related to the launch of BlackBerry 10 devices, partially offset by a reduction in headcount related to the CORE
program.
Operating expenses decreased by $448 million, or 29.2%, compared to $1.5 billion or 36.7% of revenue, in the fourth quarter of fiscal
2012, reflecting the lower consolidated revenue in the fourth quarter of fiscal 2013. Excluding the impact of charges incurred as part
of the CORE program during the fourth quarter of fiscal 2013, of which $33 million were attributable to operating expenditures and
the Q4 Goodwill Impairment Charge incurred in the fourth quarter of fiscal 2012, operating expenses decreased by $126 million. This
decrease was due to cost savings related to vendor contracts and a net reduction in headcount related costs driven by the CORE
program compared to the fourth quarter of fiscal 2012.
Research and Development Expense
Research and development expenses decreased by $10 million to $383 million in the fourth quarter of fiscal 2013 compared to $393
million in the third quarter of fiscal 2013. Excluding the impact of charges related to the CORE program incurred during the fourth
quarter of fiscal 2013 of $3 million and the charges related to the CORE program incurred during the third quarter of fiscal 2013 of $4
million, that were attributable to research and development expenditures, research and development expenses decreased by $9
million, which was primarily attributable to a decrease in research and development device costs related to the launch of BlackBerry
10 and a reduction in headcount. Research and development related headcount decreased by approximately 3%, compared to the third
quarter of fiscal 2013.
Research and development expenses decreased by $3 million or 1% in the fourth quarter of fiscal 2013 compared to $386 million in
the fourth quarter of fiscal 2012. Excluding the impact of charges incurred as part of the CORE program during the fourth quarter of
fiscal 2013, of which $3 million were attributable to
44
For the Three Months Ended
(in millions)
March 2, 2013 December 1, 2012 March 3, 2012
% of
Revenue
% of
Revenue
% of
Revenue
Revenue
$2,678 $2,727 $4,181
Operating expenses
Research and develo
p
ment
$383 14.3% $393 14.4% $386 9.2%
Sellin
g
, marketin
g
and administration
523 19.5% 487 17.9%
646
15.5%
Amortization
181 6.8% 18
0
6.6% 148 3.5%
Im
p
airment of Goodwill
—
—
—
—
355
8.5%
Total
$1,087 40.6% $1,060 38.9% $1,535 36.7%