Blackberry 2014 Annual Report Download - page 144

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BlackBerry Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
14
Fiscal 2014 Operating Results – Executive Summary
The following table sets forth certain consolidated statement of operations data, which is expressed in millions of dollars, for
the periods indicated, except for share and per share amounts, as well as certain consolidated balance sheet data, as at March 1,
2014, March 2, 2013, and March 3, 2012, which is expressed in millions of dollars.
As at and for the Fiscal Year Ended
March 1, 2014 March 2, 2013 Change Fiscal
2014/2013 March 3, 2012 Change Fiscal
2013/2012
(in millions, except for share and per share amounts)
Revenue(1) $ 6,813 $ 11,073 $ (4,260) $ 18,423 $ (7,350)
Cost of sales(2)(3)(4) 6,856 7,639 (783) 11,848 (4,209)
Gross margin (43) 3,434 (3,477) 6,575 (3,141)
Operating expenses
Research and development(2) 1,286 1,509 (223) 1,556 (47)
Selling, marketing and
administration (2) 2,103 2,111 (8) 2,600 (489)
Amortization 606 714 (108) 567 147
Impairment of long-lived assets (5) 2,748 — 2,748 — —
Impairment of goodwill(6)(7) — 335 (335) 355 (20)
Debenture fair value adjustment(8) 377 — 377 — —
7,120 4,669 2,451 5,078 (409)
Operating income (loss) (7,163) (1,235)(5,928) 1,497 (2,732)
Investment income (loss) (21) 15 (36) 21 (6)
Income (loss) from continuing operations
before income taxes (7,184) (1,220)(5,964) 1,518 (2,738)
Provision for (recovery of) income taxes(9) (1,311) (592)(719) 347 (939)
Income (loss) from continuing operations (5,873) (628)(5,245) 1,171 (1,799)
Loss from discontinued operations —(18) 18 (7)(11)
Net income (loss) $ (5,873) $ (646) $ (5,227) $ 1,164 $ (1,810)
Basic earnings (loss) per share
Basic and diluted earnings (loss) per share
from continuing operations $ (11.18) $ (1.20) $ 2.23
Basic and diluted loss per share from
discontinued operations —(0.03)(0.01)
Total basic and diluted earnings (loss) per
share $ (11.18) $ (1.23) $ 2.22
Weighted-average number of shares
outstanding (000’s)
Basic 525,168 524,160 524,101
Diluted 525,168 524,160 524,190
Total assets $ 7,552 $ 13,165 $ (5,613) $ 13,731 $ (566)
Total liabilities 3,927 3,705 222 3,631 $ 74
Total long-term liabilities 1,659 245 1,414 242 $ 3
Shareholders’ equity 3,625 9,460 (5,835) 10,100 $ (640)
(1) During fiscal 2012, the Company experienced a service interruption which resulted in the loss of service revenue and
the payment of penalties of approximately $54 million related to the unavailability of the Company’s network (the
“2012 Service Interruption”).
(2) Cost of sales included $103 million, research and development included $76 million, and selling, marketing and
administration expenses included $333 million in charges related to the Company’s CORE program and strategic
review process during fiscal 2014. See “Overview – CORE and Operational Restructuring” and “Non-GAAP
Financial Measures”.