Blackberry 2014 Annual Report Download - page 132

BlackBerry Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
2
compared to fiscal year ended March 2, 2013 - Revenue - Revenue Trends”, “Summary Results of Continuing Operations -
Three months ended March 1, 2014 compared to three months ended March 2, 2013 - Revenue - Revenue by Category -
Service Revenue”, “Financial Condition - Liquidity and Capital Resources - Current Assets”, “Financial Condition - Liquidity
and Capital Resources - Investing Activities” and “Financial Condition - Credit Facilities and Other Funding Sources”.
Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its
perception of historical trends, current conditions and expected future developments, as well as other factors that the Company
believes are appropriate in the circumstances, including but not limited to, the Company’s expectations regarding its business,
strategy, opportunities and prospects, including its ability to implement meaningful changes to address its business challenges,
the launch of products based on the BlackBerry 10 platform, general economic conditions, product pricing levels and
competitive intensity, supply constraints, and the Company’s expectations regarding the cash flow generation of its business
and the sufficiency of its financial resources. Many factors could cause the Company’s actual results, performance or
achievements to differ materially from those expressed or implied by the forward-looking statements, including, without
limitation, the following factors, most of which are discussed in greater detail in the “Risk Factors” section of the Company’s
AIF, which is included in the Company’s Annual Report. These factors should be considered carefully, and readers should not
place undue reliance on the Company’s forward-looking statements:
• risks related to the Company's ability to implement and to realize the benefits of its strategic initiatives, including a
return to the Company's core strengths of enterprise and security, changes to the Company's Devices business,
including the new partnership with Foxconn Technology Group (“Foxconn”), and the planned transition to an
operating unit organizational structure consisting of the Devices business, Enterprise Services, QNX Embedded
business and Messaging;
• the Company’s ability to maintain its existing relationships with its enterprise customers and the Company's ability
to transition its enterprise customers to the BES 10 platform and deploy BlackBerry 10 smartphones, and the risk
that current BES 10 test installations may not convert to commercial installations;
• the Company's ability to enhance its current products and services, or develop new products and services in a timely
manner or at competitive prices, including risks related to new product introductions and adoption and the relevance
of hardware in light of the Company's decreasing market share of the smartphone industry;
• the risk that uncertainty relating to the Company's previously disclosed announcements concerning the Company's
operational restructuring, recent management changes and the Company's workforce reductions, may adversely
impact the Company's business, existing and future relationships with business partners and end customers of its
products and services, and its ability to attract and retain key employees;
• risks related to the Company’s ability to offset or mitigate the impact of the decline in the Company’s service access
fees on its consolidated revenue by developing an integrated services and software offering;
• intense competition, rapid change and significant strategic alliances within the Company’s industry, including recent
and potential future strategic transactions by its competitors or carrier partners, which could continue to weaken the
Company’s competitive position or could continue to require the Company to reduce its prices to compete
effectively;
• the Company's ability to adapt to, and realize the anticipated benefit of, its recent board of directors (“Board of
Directors”) and management changes;
• the Company’s increasing reliance on third-party manufacturers for certain products and its ability to manage its
production and repair process, and risks related to the Company changing manufacturers or reducing the number of
manufacturers or suppliers it uses;
• risks related to the Company's ability to implement and to realize the benefits of its previously-disclosed operational
restructuring initiatives, including the CORE program, and its ability to continue to realize cost reductions in the
future, including the Company's ongoing efforts to continue to implement a workforce reduction of approximately
4,500 positions by the end of the first quarter of fiscal 2015;
• the risk that workforce reductions may result in a disruption to business critical processes and the effectiveness of
the Company's internal controls;
• the Company’s ability to maintain its existing relationships with its network carrier partners and distributors, and its
reliance on its network carrier partners to help promote the BlackBerry 10 platform and BlackBerry 10 smartphones;
• risks related to the Company’s ability to maintain or increase its liquidity, its existing cash balance, its ability to
access existing or potential alternative sources of funding, the sufficiency of its financial resources, and its ability to
service its debt;
• risks related to the Company's significant indebtedness;