Blackberry 2016 Annual Report Download - page 111

Download and view the complete annual report

Please find page 111 of the 2016 Blackberry annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 138

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138

BlackBerry Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
3
• risks related to the Company’s significant indebtedness, which could adversely affect its operating flexibility and
financial condition;
• the risk that the Company could be found to have infringed on the intellectual property rights of others;
• the risk that litigation against the Company may result in adverse outcomes;
• risks related to government regulations applicable to the Company’s products and services, including products
containing encryption capabilities, which could negatively impact the Company’s business;
• risks related to the use and disclosure of user data and personal information, which could give rise to liabilities as a
result of legal, carrier and other requirements;
• risks related to foreign operations, including fluctuations in foreign currencies;
• risks associated with any defects in the Company’s products and services, which can be difficult to remedy and
could have a material adverse effect on the Company’s business if they occur;
• the risk of a negative impact on the Company’s business as a result of actions of activist shareholders;
• risks related to the supplementing and management of the Company’s catalogue of third-party applications;
• risks related to the failure of the Company’s suppliers, subcontractors, third-party distributors and representatives to
use acceptable ethical business practices or comply with applicable laws;
• risks related to health and safety and hazardous materials usage regulations, and network certification risks;
• costs and other burdens associated with regulations regarding conflict minerals;
• risks related to the Company possibly losing its foreign private issuer status under U.S. federal securities laws;
• the potential impact of copyright levies in numerous countries;
• risks related to tax provision changes, the adoption of new tax legislation, or exposure to additional tax liabilities;
• the volatility of the market price of the Company’s common shares;
• risks related to adverse economic and geopolitical conditions;
• market and credit risk associated with the Company’s cash, cash equivalents and short-term or long-term
investments; and
• risks related to the fluctuation of the Company’s quarterly revenue and operating results.
All of these factors should be considered carefully, and readers should not place undue reliance on the Company’s forward-
looking statements. Any statements that are forward-looking statements are intended to enable the Company’s shareholders to
view the anticipated performance and prospects of the Company from management’s perspective at the time such statements
are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as
difficulties in forecasting the Company’s financial results and performance for future periods, particularly over longer periods,
given the ongoing transition in the Company’s business strategy and the rapid technological changes, evolving industry
standards, intense competition and short product life cycles that characterize the wireless communications industry. These
difficulties in forecasting the Company’s financial results and performance are magnified at the present time given the
uncertainties related to the Company’s strategic initiatives described in this MD&A. See “Business Overview - Strategy,
Products and Services” in this MD&A.
The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as required by applicable law.
Business Overview
The Company is securing a connected world, delivering innovative solutions across the entire mobile ecosystem and beyond.
The Company secures the world’s most sensitive data across all endpoints – from cars to smartphones – making the mobile-first
enterprise vision a reality. Founded in 1984 and based in Waterloo, Ontario, the Company operates offices in North America,
Europe, Middle East and Africa, Asia Pacific and Latin America. The Company’s common shares are listed on the NASDAQ
Global Select Market (NASDAQ: BBRY) and the Toronto Stock Exchange (TSX: BB), and its unsecured convertible
debentures due in 2020 (the “Debentures”) are listed on the Toronto Stock Exchange (TSX: BB.DB.U).
The Company’s operating unit organizational structure consists of the Devices business, Enterprise Solutions and Services
(which includes the Company’s newest practice, Professional Cybersecurity Services), Business Technology Solutions
(“BTS”), and Messaging. Across all businesses, BlackBerry products and services are widely recognized in the market for