Blackberry 2013 Annual Report Download - page 70

Company’s base of users, customers and partners. The Company believes that the importance of brand recognition will increase due
to the relatively low barriers to entry in the wireless communications industry. On January 30, 2013, the Company announced its
intention to adopt the name of its revolutionary BlackBerry product line to coincide with the launch of its new mobile computing
platform, BlackBerry 10. The move consolidates the Company’s brand into a single cohesive global presence. The corporate name of
the Company has not changed and the Company will do business as BlackBerry pending shareholder approval of the new corporate
name at the Company’s Annual General and Special Meeting in July 2013. The Company also plans to make significant
investmentsin marketing in cooperation with its U.S. carrier partners and its other global customers to promote and support the launch
of BlackBerry 10. The “BlackBerry” brand may be negatively impacted by a number of factors, including service outages, product
malfunctions, product performance not meeting expectations, a user experience which does not compare to that of the Company’s
competitors, data privacy and security issues, and perceptions of the value and future success of the Company’s products and services.
If the Company fails to maintain and enhance the “BlackBerry” brand, or if the Company incurs excessive expenses in this effort, the
Company’s business, results of operations, and financial condition will be materially and adversely affected.
The Company is subject to risks inherent in foreign operations.
Sales outside North America represented approximately 74% of the Company’s revenue in fiscal 2013 compared to 78% in fiscal
2012. The North American market, particularly the United States, has become increasingly competitive and the Company intends to
continue to pursue international market growth opportunities, such that international sales are likely to continue, at least in the near
future, to account for a significant portion of the Company’s revenue. The Company has committed, and intends to commit,
significant resources to its international operations and sales and marketing activities. The Company maintains offices in a number of
foreign jurisdictions, and expects to open additional offices in other countries. The Company has limited experience conducting
business in some of these jurisdictions outside of North America, and it may not be aware of all the factors that may affect its
business in foreign jurisdictions. The Company will be subject to a number of risks associated with its expanding international
business operations and sales and marketing activities that may increase liability, costs, lengthen sales cycles and require significant
management attention. These risks include:
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• compliance with the laws of the United States, Canada and other countries that apply to the Company’s international
o
p
erations, includin
g
im
p
ort and ex
p
ort le
g
islation, lawful access and
p
rivac
y
laws (as discussed further below);
• compliance with existing and emerging anti-corruption laws, including the Foreign Corrupt Practices Act of the United
States, the Corru
p
tion of Forei
g
n Public Officials Act of Canada and the UK Briber
y
Act;
• increased reliance on third
p
arties to establish and maintain forei
g
n o
p
erations;
• the com
p
lexities and ex
p
ense of administerin
g
a business abroad;