Blackberry 2014 Annual Report Download - page 159

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BlackBerry Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
29
7 Inventory Provision, the 2012 Service Interruption, and restructuring charges of $125 million related to the Company’s
previous cost optimization program incurred in fiscal 2012. The decrease was primarily attributable to a decrease in the
Company’s gross margin, partially offset by a reduction in operating expenses and a recovery of income taxes. The Company’s
consolidated gross margin in fiscal 2013 was negatively impacted by the lower shipment volumes due to the Company’s aging
product portfolio in a very competitive environment in which multiple competitors introduced new devices beginning in early
fiscal 2013 as well as the continuation of pricing initiatives to drive sell-through for BlackBerry 7 handheld devices and the
impact of allocating certain fixed costs, including licensing costs, to lower shipment volumes, compared to fiscal 2012. The
decrease in gross margin was partially offset by the higher average selling prices of BlackBerry 10 devices shipped, favorable
renegotiations of key contracts associated with elements of the Company’s hardware business and benefits from a leaner and
re-architected supply chain.
Basic and diluted loss per share from continuing operations were both $1.20 in fiscal 2013, compared to basic and diluted
earnings per share ("EPS") from continuing operations of $2.23 in fiscal 2012.
The weighted average number of shares outstanding was 524 million common shares for basic and diluted loss per share for the
fiscal year ended March 2, 2013 and the fiscal year ended March 3, 2012.
Common Shares Outstanding
On March 26, 2013, there were 524 million voting common shares, options to purchase 7.2 million voting common shares,
15.1 million restricted share units and 0.3 million deferred share units outstanding.