Blackberry 2015 Annual Report Download - page 113

BlackBerry Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
2
The words “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “could”, “intend”, “believe”, “target”, “plan” and
similar expressions are intended to identify forward-looking statements in this MD&A, including in the sections entitled
“Business Overview”, “Fiscal 2015 Summary Results of Operations - Financial Highlights”, “Results of Operations - Fiscal
year ended February 28, 2015 compared to fiscal year ended March 1, 2014 - Revenue - Revenue by Category - Hardware
Revenue”, “Results of Operations - Fiscal year ended February 28, 2015 compared to fiscal year ended March 1, 2014 -
Revenue - Revenue by Category - Service Revenue”, “Results of Operations - Fiscal year ended February 28, 2015 compared
to fiscal year ended March 1, 2014 - Revenue - Revenue by Category - Software Revenue”, “Results of Operations - Fiscal year
ended February 28, 2015 compared to fiscal year ended March 1, 2014 - Gross Margin”, “Results of Operations - Fiscal year
ended February 28, 2015 compared to fiscal year ended March 1, 2014 - Operating Expenses”, “Results of Operations - Fiscal
year ended February 28, 2015 compared to fiscal year ended March 1, 2014 - Net Loss”, and “Financial Condition - Debenture
Financing 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 new products and services, 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 AIF, which is included in the Annual Report. These factors should be considered carefully, and readers should not place
undue reliance on the Company’s forward-looking statements:
• the Company's ability to attract new enterprise customers and maintain its existing relationships with its enterprise
customers or transition them to the BES12 platform and deploy BlackBerry 10 smartphones;
• the Company’s ability to develop, market and distribute an integrated software and services offering, or otherwise
monetize its technologies, to grow revenue, achieve sustained profitability or mitigate the impact of the decline in
the Company’s service access fees;
• 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, or to meet customer requirements, including risks related to new product
introductions;
• risks related to the Company’s products and services being dependent upon the interoperability with rapidly
changing systems provided by third parties;
• 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 sell, deliver and support BlackBerry products and services is dependent on establishing and
maintaining relationships with network carriers and distributors;
• the occurrence or perception of a breach of the Company’s security measures, or an inappropriate disclosure of
confidential or personal information;
• network or other business interruptions;
• dependence on the Company’s ability to attract new personnel and retain key personnel;
• risks related to sales to customers in highly regulated industries and governmental entities, which can be highly
competitive and require compliance with stringent regulation;
• 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;
• the Company’s reliance on its suppliers for functional components and the risk that suppliers will not supply
components on a timely basis, in sufficient quantities or of the desired quality;
• the Company’s ability to obtain rights to use software or components supplied by third parties;
• the Company’s ability to maintain or increase its liquidity and service its debt is dependent on generating cash flow
by offering competitive products and services and sustaining recent cost reductions;
• the Company’s ability to address inventory and asset risk and the potential for additional charges related to its
inventory and long-lived assets;
• risks related to the Company’s significant indebtedness;