Blackberry 2013 Annual Report Download - page 78

The Company’s business could be negatively affected as a result of actions of activist shareholders.
Publicly-traded companies have increasingly become subject to campaigns by investors seeking to advocate certain governance
changes or corporate actions such as financial restructuring, special dividends, share repurchases or even sales of assets or the entire
company. Activist shareholders have publicly advocated for certain governance and strategic changes at the Company in the past, and
the Company could be subject to additional shareholder activity or demands in the future. Given the challenges the Company has
encountered in its business in recent years, recent changes to the Company’s governance and strategic focus may not satisfy such
shareholders who may attempt to promote or effect further changes, or acquire control over the Company. Responding to proxy
contests, media campaigns and other actions by activist shareholders would be costly and time-consuming, disrupt the Company’s
operations and would divert the attention of the Company’s Board of Directors and senior management from the pursuit of its
business strategies, particularly its transition to the new BlackBerry 10 platform, which could adversely affect the Company’s results
of operations, financial condition and prospects. If individuals are elected to the Company’s Board of Directors with a specific agenda
to increase short-term shareholder value, it may adversely affect or undermine the Company’s ability to effectively implement the
Company’s plans. Perceived uncertainties as to the Company’s future direction as a result of shareholder activism could also result in
the loss of potential business opportunities, and may make it more difficult to attract and retain qualified personnel and business
partners, to the detriment of the Company.
Government regulation of wireless spectrum and radio frequencies may provide opportunities for competitors or limit
industry growth.
The allocation of radio frequencies around the world is regulated by government bodies and there is limited spectrum available for
use in the delivery of wireless services. If there is insufficient spectrum allocated to the delivery of wireless communications services,
the Company’s growth and financial performance could be adversely impacted. In addition, deregulation of spectrum may allow new
wireless technologies to become viable, which could offer competition to the Company’s products and services. The Company
expects this risk will become increasingly significant as the Company endeavors to enter new foreign markets.
Reduced spending by customers due to the uncertainty of economic and geopolitical conditions may negatively affect the
Company.
Many of the end users of the BlackBerry wireless solution are directly affected by the current economic and geopolitical conditions
affecting the broader market. A slowdown in capital spending by end users of the Company’s products and services, coupled with
existing economic and geopolitical uncertainties globally and in the financial services or legal markets in particular, could
substantially reduce the demand for the Company’s products and services and adversely affect the Company’s business, results of
operations and financial condition.
Current and future conditions in the domestic and global economies remain uncertain, and it is difficult to estimate the level of
economic activity for the economy as a whole. It is even more difficult to estimate growth in various parts of the economy, including
the markets in which the
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