Blackberry 2015 Annual Report Download - page 112

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BLACKBERRY LIMITED
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS FOR THE THREE MONTHS AND FISCAL YEAR ENDED FEBRUARY 28, 2015
March 27, 2015
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, formerly Research In Motion Limited (the “Company” or “BlackBerry”), for the fiscal
year ended February 28, 2015. 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 28, 2015 and up to and including
March 27, 2015.
Additional information about the Company, including the Company’s Annual Information Form for the fiscal year ended
February 28, 2015 (the “AIF”), which is included in the Company’s Annual Report on Form 40-F for the fiscal year ended
February 28, 2015 (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 ability to reach sustainable non-GAAP profitability sometime in fiscal 2016, and expectations
regarding its cash flow and revenue trend;
• 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”) 10, BES12, BlackBerry 10 smartphones, services related to BlackBerry
Messenger (“BBM”), and the cloud-based BlackBerry Internet of Things platform (the “BlackBerry IoT Platform”),
including software products offered by the Company's wholly-owned subsidiary, QNX Software Systems Limited
(“QNX”);
• the Company's expectations regarding expanding its distribution capability and realizing the related benefits
sometime in fiscal 2016;
• the Company's expectations regarding the generation of revenue from its software, services and other technologies;
• the Company's anticipated levels of decline in service revenue in the first quarter of fiscal 2016;
• the Company's expectations for the average selling prices of its devices;
• the Company's expectations for gross margin for the next few quarters;
• the Company's expectations for operating expenses for the coming quarters;
• the Company’s expectations regarding its non-GAAP earnings per share in fiscal 2016;
• the Company’s expectations with respect to the sufficiency of its financial resources and maintaining its strong cash
position;
• the Company’s estimates of purchase obligations and other contractual commitments; and
• the Company's assumptions and expectations described in the Company's critical accounting estimates and
significant accounting policies.