Blackberry 2015 Annual Report Download - page 115

BlackBerry Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
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With the BlackBerry platform, the Company believes it offers a market-leading mobile communications experience with push-
based connectivity, industry-leading security and enterprise manageability, excellent radio performance and differentiated
social applications, such as BBM, that provide immediacy, productivity and collaboration. The Company has sought to renew
its focus on its core strengths of enterprise and security through the expansion of its product and service offerings in the
enterprise space, including the introduction of the BES12 platform.
The Company’s latest devices are its BlackBerry 10 smartphone models, including the Classic, Passport, Z3, Z30, Z10, Q10
and Q5, each with Long Term Evolution capability, as well as the BlackBerry Leap that was announced on March 3, 2015 and
is expected to be available beginning in April 2015. As at the end of fiscal 2015, the Company had a user base of
approximately 37 million.
The Company has experienced a significant decline in revenue and market share due to intense competition and other factors,
as discussed below under “Results of Operations - Fiscal year ended February 28, 2015 compared to fiscal year ended March 1,
2014 – Revenue” and “Results of Operations – Three months ended February 28, 2015 compared to three months ended
March 1, 2014 – Revenue”.
Strategy, Products and Services
The Company is completing its transition to an operating unit organizational structure consisting of the Devices business,
Enterprise Services, Business Technology Solutions (“BTS”) business and Messaging. Across all four businesses, BlackBerry
products and services are renowned for productivity and security, and the Company delivers the most secure end-to-end mobile
enterprise solutions in the market. With these core strengths, the Company’s broad product portfolio is focused on serving
enterprise customers, particularly in regulated industries and select vertical markets, including financial services, government
and healthcare. The Company’s goal is to maintain its market leadership in the enterprise mobility segment by continuing to
extend the functionality of its BES infrastructure beyond enterprise mobility management (“EMM”), to include application
management, application enablement and application development and, on top of this extensive foundation, deliver additional
horizontal and vertical applications. To achieve this vision, BlackBerry has aligned its businesses and operations around the
four core areas to drive greater efficiency and speed in bringing new offerings to market, while optimizing assets and
capabilities across all businesses in support of the Company’s overall strategy and financial objectives. Please also see the
“Narrative Description of the Business - Strategy” and “Narrative Description of the Business - Products and Services” sections
in the AIF, which is included in the Annual Report.
The Company continues to implement its new strategy, taking the following key steps in fiscal 2015:
• achieved its target of break-even cash flow results in the third quarter of fiscal 2015, one quarter sooner than
anticipated;
• launched BES12, a cross-platform EMM solution;
• launched four new BlackBerry 10 smartphones, including the Classic, Passport, Z3 and the Porsche Design P’9983;
• unveiled the BlackBerry IoT Platform, initially targeting the automotive and asset tracking industries, by combining
technology from QNX, with BlackBerry's secure network infrastructure and device lifecycle management software;
• announced that the Company is working with Google to enable BES12 to manage devices equipped with Android™
for Work;
• announced a strategic partnership with Samsung Electronics Co., Ltd. to provide a tightly integrated, end-to-end
secure solution that brings together BES12 with Samsung Galaxy smartphones and tablets that are embedded with
Samsung KNOX;
• announced a partnership with Amazon to make approximately 240,000 Android applications available to BlackBerry
users through the Amazon Appstore;
• announced new value-added enterprise solutions, including BlackBerry Blend, WorkLife by BlackBerry, Enterprise
Identity by BlackBerry and VPN Authentication by BlackBerry;
• launched BBM Protected and BBM Meetings;
• acquired Secusmart GmbH (“Secusmart”), a leader in high-security voice and data encryption and anti-eavesdropping
solutions for government organizations, enterprises and telecommunications service providers in Germany and
internationally;
• acquired Movirtu Limited (“Movirtu”), a provider of virtual identity solutions for mobile operators that allow multiple
numbers to be active on a single device, complementing BlackBerry's Secure Work Space, BlackBerry Balance and
other partitioning technologies;