Blackberry 2016 Annual Report Download - page 109

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1
BLACKBERRY LIMITED
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS FOR THE THREE MONTHS AND FISCAL YEAR ENDED FEBRUARY 29, 2016
April 1, 2016
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be
read together with the audited consolidated financial statements and the accompanying notes (the “Consolidated Financial
Statements”) of BlackBerry Limited (the “Company” or “BlackBerry”), for the fiscal year ended February 29, 2016. The
Consolidated Financial Statements are presented in U.S. dollars and have been prepared in accordance with United States
generally accepted accounting principles (“U.S. GAAP”). All financial information in this MD&A is presented in U.S. dollars,
unless otherwise indicated.
The Company has prepared this MD&A with reference to National Instrument 51-102 “Continuous Disclosure Obligations” of
the Canadian Securities Administrators. Under the U.S./Canada Multijurisdictional Disclosure System, the Company is
permitted to prepare this MD&A in accordance with the disclosure requirements of Canada, which are different from those of
the United States. This MD&A provides information for the fiscal year ended February 29, 2016 and up to and including
April 1, 2016.
Additional information about the Company, including the Company’s Annual Information Form for the fiscal year ended
February 29, 2016 (the “AIF”), which is included in the Company’s Annual Report on Form 40-F for the fiscal year ended
February 29, 2016 (the “Annual Report”), can be found on SEDAR at www.sedar.com and on the U.S. Securities and Exchange
Commission’s (“SEC”) website at www.sec.gov.
Cautionary Note Regarding Forward-Looking Statements
This MD&A contains forward-looking statements within the meaning of certain securities laws, including under the U.S.
Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements relating to:
• the Company’s expectations regarding its cash flow and adjusted EBITDA;
• the Company’s plans, strategies and objectives, including the anticipated benefits of its strategic initiatives described
below;
• the Company’s expectations regarding anticipated demand for, and the timing of, new product and service offerings,
and the Company’s plans and expectations relating to its existing and new product and service offerings, including
BlackBerry Enterprise Service (“BES”) 12, the Good® Secure EMM Suites, BlackBerry smartphones and the cloud-
based BlackBerry Internet of Things platform;
• the Company’s expectations regarding the generation of revenue from its software, services and other technologies,
including from technology licensing and the monetization of its patent portfolio, its expectations regarding the
growth of and recurring nature of certain of its software and services revenue, and its expectations regarding the
ability of such revenue to offset the decline in service access fees revenue;
• the Company’s expectations regarding profitability in its devices business in fiscal 2017;
• the Company’s anticipated levels of decline in service access fees revenue in the first quarter of fiscal 2017;
• the Company’s expectations for gross margin in the first quarter of fiscal 2017;
• the Company’s expectation that during fiscal 2017 the Company will move from single reportable operating
segment disclosure to multiple operating segment disclosure;
• the Company’s expected benefits from its plans to reallocate resources through its resource alignment program (the
“RAP”);
• the Company’s expectations regarding its common share repurchase program (the “Repurchase Program”);
• the Company’s expectations with respect to the sufficiency of its financial resources; and
• the Company’s estimates of purchase obligations and other contractual commitments.
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 - Strategy, Products and Services”, “Business Overview - Common Share Repurchase Program”,
“Business Overview - Operating Segments”, “Fiscal 2016 Summary Results of Operations - Financial Highlights - Free Cash