Blackberry 2016 Annual Report Download - page 110

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BlackBerry Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
2
Flow”, “Results of Operations - Fiscal year ended February 29, 2016 compared to fiscal year ended February 28, 2015 -
Revenue - Revenue by Category - Software and Services Revenue”, “Results of Operations - Fiscal year ended February 29,
2016 compared to fiscal year ended February 28, 2015 - Revenue - Revenue by Category - Hardware Revenue”, “Results of
Operations - Three months ended February 29, 2016 compared to the three months ended February 28, 2015 - Revenue -
Revenue by Category - Service Access Fees Revenue”, “Results of Operations - Three months ended February 29, 2016
compared to the three months ended February 28, 2015 - Gross Margin” 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, and the following:
• the Company’s ability to attract new enterprise customers and maintain its existing relationships with its enterprise
customers or transition them to the Company’s latest enterprise software platforms and deploy BlackBerry
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 to offset 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, or accurately predict emerging
technological trends;
• the Company’s ability to successfully market and distribute the PRIV device;
• the intense competition faced by the Company;
• the occurrence or perception of a breach of the Company’s security measures, or an inappropriate disclosure of
confidential or personal information;
• risks related to the Company’s products and services being dependent upon the interoperability with rapidly
changing systems provided by third parties;
• risks related to the Company’s ability to attract new personnel and retain key personnel;
• the Company’s dependence on its relationships with network carriers and distributors;
• risks related to acquisitions, divestitures, investments and other business initiatives, which may negatively affect the
Company’s results of operations;
• the risk that network disruptions or other business interruptions could have a material adverse effect on the
Company’s business and harm its reputation;
• the risk that failure to protect the Company’s intellectual property could harm its ability to compete effectively and
the Company may not earn the revenues it expects from intellectual property rights;
• the Company’s reliance on its suppliers to supply functional components on a timely basis and in sufficient
quantities;
• risks associated with sales to customers in highly regulated industries and governmental entities, which can be
highly competitive and require compliance with stringent regulation;
• the Company’s reliance on third parties to manufacture and repair its products;
• the Company’s ability to obtain rights to use software or components supplied by third parties;
• the substantial inventory and other asset risk faced by the Company, including the potential for additional charges
related to its inventory and long-lived assets;
• the risk that the Company’s ability to maintain or increase its liquidity could be adversely affected by its ability to
generate cash flow;