Good evening, ladies and gentlemen, and thank you for standing by. Welcome to the Research In Motion Fourth Quarter Fiscal 2012 Results and Year End Conference Call. [Operator Instructions] I would like to remind everyone that this conference call is being recorded today, Thursday, March 29, 2012, at 5 p.m. Eastern time. I would now turn the conference over to Mr. Paul Carpino, Vice President, Investor Relations. Please go ahead, sir.

Thank you. Welcome to RIM's Fiscal 2012 Fourth Quarter and Year End Results Conference Call. With me on the call today are Thorsten Heins, CEO; and Brian Bidulka, CFO. After I read our cautionary note regarding forward-looking statements, Thorsten will provide the business and strategic update. Brian will then review the fourth quarter results and our outlook. We will then open up the call for questions. This call is available to the general public via call-in number and via webcast on the Investor Relations section at rim.com. A replay of the webcast will also be available on the rim.com website. We plan to wrap up the call around 6:00 p.m. Eastern this evening. [Operator Instructions] Some of the statements we will be making today constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. These include statements about our plans, strategies and objectives and the anticipated opportunities and challenges in the coming quarters; our expectations with respect to product shipments, revenue, gross margin, operating expenses, earnings, net subscribers and cash position in fiscal 2013; our product development and marketing initiative and timing including our expectations relating to our BlackBerry 10 smartphones; our plans and expectations relating to our organizational and technology transition; our plans and initiatives to improve the performance of the business, including our marketing and pricing initiatives; our guidance practices in the future; and other statements regarding our plans, objectives and expectations. We will indicate forward-looking statements by using words such as expect, plan, anticipate, estimate, may, will, should, forecast, intend, believe, continue and similar expressions. All forward-looking statements reflect our current views with respect to future events and are subject to risks and uncertainties and assumptions we have made. Many factors could cause our actual…

Thank you, Paul, and thank you all for joining the call today. I've been the CEO of RIM for just over 10 weeks now, and my main focus during this time has been to meet RIM and listen to RIM's many stakeholders, including customers, partners, developers, carriers, shareholders and employees. And I undertook an extensive review of RIM's business to evaluate where we are today. In my discussions with our carrier partners, they expressed a strong desire to continue with BlackBerry as a significant partner. However, there's still a lot of work to be done on RIM's side to satisfy all the customer needs out there. Since I last spoke to you back in January, I undertook a comprehensive internal review to assess the state of RIM's business. I did my own reality check on where the entire company really is. I think as the benefit of going through this process from the vantage point of CEO, it is now very clear to me that substantial change is what RIM needs. I am focused on creating long-term value for this company, and I'm committed to do whatever it takes to deliver on that commitment. Let me outline a few of the more immediate things that we are doing. We plan to refocus on the enterprise business and capitalize on our leading position in this segment. We were delayed to the bring-your-own-device movement and we saw a significant slowing down in our enterprise subscriber growth rate as a result. I am committed with my team to reclaiming lost market share in this space. The Enterprise business, led by Robin Bienfait, RIM's CIO, is already aggressively moving to upgrade our enterprise space, the new BlackBerry 7 devices and to drive the adoption of BlackBerry Mobile Fusion. BlackBerry Mobile Fusion, RIM's next-generation enterprise…

Thank you, Thorsten. Revenue for the fourth quarter of fiscal 2012 is $4.2 billion, a 19% decrease from the third quarter, primarily as a result of BlackBerry smartphone shipments decreasing from 14.1 million in Q3 to 11.1 million in Q4, as well as a higher proportion of lower ASP products in the mix. BlackBerry smartphones continue to sell well into the prepaid and entry-level market, and the Bold 9900 continues to gain traction. However, certain models of the BlackBerry 7 lineup are not selling as well as anticipated. In the fourth quarter, we recognized a pretax charge of approximately $267 million relating to those products based on our current expectation for sell-through, estimated inventory levels in the channel and excess inventory on hand. We expect this trend towards the higher mix of entry-level products to continue. The plan to launch more BB7 device into the entry-level market in the near future, as Thorsten mentioned, and our portfolio of higher ASP products will begin to age before the launch of our new BlackBerry 10 devices later this year. Sales outside the United States, United Kingdom and Canada represented approximately 68% of total revenue compared to 61% in Q3. Some of the larger markets comprising the other segment in the quarter were Indonesia, South Africa and Venezuela. U.S. sales declined in the fourth quarter and represented 17% of total consolidated revenue compared to 20% in the third quarter. Sales in the U.K. in the fourth quarter represented approximately 10% compared to 11% last quarter, and Canada represented the remainder. RIM shipped approximately 11.1 million smartphones in the fourth quarter. Estimated sell-through in the quarter was strong at approximately 13.6 million units, including phone-only sales. Despite channel inventory being down on an absolute basis, it is higher on a 4-weeks basis. In Q4,…

[Operator Instructions] Your first question comes from Kulbinder Garcha from Crédit Suisse. Kulbinder Garcha - Crédit Suisse AG, Research Division: I have just a couple of questions. First of all for Thorsten, I appreciate this early for you in your strategic review of RIM and you've got ongoing reviews happening. But could you perhaps comment on -- are you committed to making devices across a spectrum of the smartphone segment on a long-term basis as an entry-level, mid-end, high-end? Is that what you think RIM needs to do? And then next, just on the strategic side, have you at least ruled out, for example, to shut down the hardware business? I'm just trying to license the [indiscernible] -- is that kind of fixed along the agenda? Then my question for Brian is on the services fee side. I just want to kind of clarify, I understand subs growth was slowed down. But given the clear changes happening in services ARPU -- services streams and services ARPU levels going forward, could your services revenue actually decline during this transitional period as well?

Okay. Let me start with the answer first, so the question around entry-level segment device versus high-end. Actually, the world is not in one stage regarding the deployment of mobile technology and mobile devices and communications. There is Asia-Pac, they still have the high need for communication where entry-level smartphones have a high onboarding rate and make a lot of sense to have in the portfolio. When we go through these strategic reviews, part of that assessment will be whether we, based on BlackBerry 10, will do this ourselves or whether we partner or whether we license. To your point, it's too early to say, but it is certainly part of the review. Where I want to drive RIM devices to, to be an aspirational high-end object of desire with the best functionality for communication purposes, and for people who just need to stay ahead of the game that need productivity and that need to achieve. Whether this means we, in the future, will build the hardware ourselves or whether we kind of engage in any other kind of partnership is exactly part of the -- in our strategic analysis and review that we're going through. And I will keep you updated once that is completed. Second question, shutting down the hardware business and just maintaining the knock in infrastructure. As I said in my call, I believe in RIM being an integrated value services and solution provider, and that encompasses the network to services and the devices. But the position I take was RIM to provide an integrated user experience across these 3 domains to the customers. But again, you could think about that either one of these 3 constituting factors or elements could also be done in a partnership. Again, we need to look at this. We will leave no stone unturned. We will be really open to assess all these situations, and we will make the best decision for RIM and for RIM's stakeholders. Brian?

Yes. And the question on the service revenue. It's dependent upon the mix and our sub base growth, and certainly the U.S. decline in subscriber base has a big impact on that. And that's -- our focus is obviously maintaining our sub base and looking at opportunities, both within the U.S., as well as internationally and growing our sub base. Kulbinder Garcha - Crédit Suisse AG, Research Division: I guess my question is, Brian, though, I appreciate that, but your sub base only grew by 2 million in the last quarter. And it sounds like you're signaling that your services fees are going down and probably quite rapidly. So I'm trying to think, is that masking your actual service revenue, dollar revenues shrinks through a period of time?

Well we -- again, I'd go back to looking at the mix of our net additions and where we're actually growing versus where we're seeing some churn. And I think that's where we just need to ensure that we're looking at any opportunity to drive our -- and maintain our sub base.

So let me give you one data point. As I said, there's really variety across the different regions. We have grown our BlackBerry subscriber base this quarter to 77 million units of subscribers, and these are BlackBerry services. They sign up for our services. Is it going to get harder and harder to grow that base? That probably could be. But with the introduction of BlackBerry 10, with the new portfolio that we're bringing to the market, with potential other strategic options that we are investigating right into, I think we will continue to innovate in the Services business. And it's our clear objective to maintain a healthy business in our Services business line.

[Operator Instructions]

Your next question comes from Jeff Kvaal from Barclays.

Thorsten, I think conventional wisdom in much of the industry at the moment is that the BYOD principle is driven by the demand by consumers to bring their own enterprise into -- or device into the enterprise. That seems to be driven by availability of applications and what have you. It seems, if I'm understanding you correctly, that you're flipping this on ahead, and you want to focus on the core enterprise businesses and you're going to pull back from the consumer band. Is that -- am I understanding that right? And if so, what does conventional wisdom have wrong about that approach?

The enterprise business, as I look at it, constitutes itself basically of 3 elements. It's the enterprise Services business, like the BlackBerry Mobile Fusion that we're providing, its corporate liability devices where we have a core strength, where even our BlackBerry 7 portfolio security is a key administration of the device is key. And then to your point, it's the bring-your-own-device segment. So to be really in all of these 3 segments, my clear objective is to use BlackBerry 10 to provide a very, very strong play in the bring-your-own-device toward the enterprise segment. Now how I constitute the consumer part of this device expression and the device identity, that's why I exactly talk about partnerships. I will provide the strength to BYOD that we can bring to the table by refocusing on what makes a BlackBerry a BlackBerry: workflow, productivity, efficiency, security, easy to work with. And on the consumer side, exactly to what I've said in -- against the first question is, we will partner. We will have to have those consumer table specs on a BlackBerry 10. There's no doubt about it. Do I have to do this myself? Probably not. So we're seeking strong partnerships that allow us to have the completely BYOD offering, but that doesn't mean we have to do it all ourselves.

Your next question comes from Richard Kramer from Arete Research.

Thorsten, I just wanted to ask you, do you have a mass market strategy for BB10? And also given that the growth is coming much more outside the U.S., do you think in future, you'd be able to give us some more breakdown of how the international business is going, perhaps breaking it into EMEA and APAC, just to understand a little bit better the growth in those markets?

That's market strategy. As I've said, Richard, this is part of the strategic review that I'm going through. I believe in the, what we call, this onboarding from feature phone to smartphones right now. This happens at a high rate in all of the major regions outside of the U.S., and I want to be aggressively pursuing this because that means I'm improving and I'm growing my install base that I need in order to then go into a BlackBerry 10. Going into the future, as I've said, Richard, I want to absolutely participate in this market. The question is what is the right business model for RIM to participate there? Is it our own hardware? Do we have to do everything ourselves? Do we license BlackBerry 10? And that is the business model you could think about. Do we partner? Do we ODM? That is currently under investigation, and I will report back to you in due course in what the decision is that we're going for. But if I want to be in the mass market, I want to participate, the business model has to be a value-creating business model for our shareholders, and that's what we need to figure out.

And on the question about the regional breakdowns, that's something we can consider in future quarters.

Your next question comes from Gus Papageorgiou from Scotiabank.

Thorsten, just as part of the strategic review with the sale of the company beyond the table, is that something beyond what you're looking at in terms of a strategic review?

So I and my team and also the board truly believe that the best path for RIM is to manage the turnaround because I look at RIM as we have to turn this company around, we have to turn it into a future -- into a successful future. That is what I am in charge for by the board, that's my challenge and that's what I'm working against. Now if there's any element that we detect during that strategic review that would lead us into this direction, we would consider it, but it is not the main direction we're pursuing right now.

Your next question comes from Simona Jankowski from Goldman Sachs.

Thorsten, another question kind of along the same lines, which is when you first spoke to us about 10 weeks ago, it seems like you had a bit of a different take on the situation, and you are open to inbound inquiries around any kind of partnership but that was not something that was going to be your primary focus. And it seems like now that you've had a few weeks to look at all the options, that is something that has in fact become the primary focus. So can you just give us a bit of a sense of what it is specifically that kind of changed your mind on that?

Yes, happy to do that. I mean what I did is, Simona, I went through all the business units within RIM, and I was looking for how do these business units, constitute and manifest a unique integrated value proposition to our customers. What I found is that some businesses, I looked at the services business unit specifically, that was actually kind of on its own feet trying to build a service business on its own. And we invested into this, we've tried to succeed. I concluded after having an intense review with the team that this is not the right approach at this time. So with my responsibility as CEO, I had the opportunity to look into all of the businesses, and not just the ones I was responsible for in the past. And that certainly opens your framework, right? This opens your reference, and you start looking at this from a CEO perspective saying, "What is my unique value contribution to the customers?" And then you cannot be fragmented. You cannot have fragmented value propositions that actually irritate people, right? And I think where we were frankly, I think we were on the path and some of the consequences we see of our market position right now of being fragmented. We're bringing this all together now. We will stop certain activities within this company that do not support the integrated value propositions. We will strongly invest in enterprise. We will strongly invest in industrial design, high-end aspirational devices, leading edge. We are known for being the best in RF technology, which is really important to the carriers. You heard about the Paratek acquisition that we did. Clearly, our position, to be best in RF, which is a strong heritage of RIM and leads to CapEx savings with carriers, leads…

Your next question comes from Amitabh Passi from UBS.

Thorsten, I just wanted to clarify a point you made. As far as your comprehensive review, you spoke about partnerships, JVs, licensing. I just want to clarify, is this sort of a post-BB10 event? Or could we see some of these partnerships and JVs even manifest themselves prior to sort of the launch of BB10?

I would say that with BB10, we're getting ready for not just a smartphone launch, we're getting ready for a mobile computing platform for the next decade. But I think the assumption would be correct that I'm focusing mostly around the ecosystem around BlackBerry 10 to make sure we have the right setup for the future business of RIM. I would not expect that to be -- have really influencing, for example, the BB7 portfolio right now. But again, it is to have a unique differentiated competitive, compelling value-creating proposition on BlackBerry 10, and there will be partnerships involved. And we will make sure that we have basically covered every aspect as we were discussing with the BYOD device, for example, that we have every aspect covered. But I want this company to focus on its core strength, and this company needs to learn to partner, needs to sign up with partners, needs to engage. Because we're in such a complicated world, just an application is already so complicated in itself, we can't do everything ourselves. But we can do what we're good at, and this is the platform, this is the RF, it's the industrial design, it's the technology, it's the network, it's the relay server. We are the only one who has a peer-to-peer and peer-to-market peer network out there. We need to leverage this and then aggregate this with partnerships in content, in services, probably in devices. I mean, as I said, the room is wide open right now for this strategic review, and we will plow through this, and as I said, promise an update when we know more.

Your next question comes from Tim Long from Bank of Montréal.

The one clarification and one question. Just to clarify, I'm sorry, I know this has been asked. But the comment about the introduction of new lower tier service provider price initiatives. I still don't understand this. Taking mix out, does that mean that ARPU is going to be lower? And then the question is if you look at the announcements that you made on subscriber numbers, it looks like a little over 2 million net adds this quarter, about half of what it's been the prior 5 or 6. Can you just give us a little color on how that happened? Did it mean that the U.S. was down more than the prior quarters in deactivations? Or was the international side up less? Or some combinations? So any color on that would be great.

Okay. Let me do the first one about the lower tier pricing. The dynamics that we see right now is lots of people are moving to smartphones. Now you don't move from a feature phone to a full-blown smartphone with all bells and whistles that you can think about. There is a learning point that we've successfully covered with 8520 Curve, and it's still selling really, really well. Now the same holds for the services. You don't go for a full-blown service package right away, then you onboard into the smartphone arena. So what we did here is we have created entry-level packages also on the services side, and we provide our customers, our channel that cares with a software called Catalyst that actually allows you to upgrade online for the next data package. So imagine you have entry-level social plan and you have BIS, texting and a bit of messaging in there, right? And you had browsing on your device, and now the device tells you, "Hey, your data plan doesn't support this." You get immediately the offer to upgrade your data plan for the next level online, it's online provision, there's no sales element involved and this is all IT-based. And we have that actually deployed with a few carriers out there. And we're positively surprised by the uptake rates those carriers have with our Catalyst software. And that gets them and us up to higher ARPU level, so you onboard. And then you basically upsell and upsell, start from the services. And then this upsell also starts from the devices, right? So it's a story of moving somebody through the experience curve to where they've been finally really want to be. That's how it works. Brian, you have a question?

Sure. On the sub base, the number was closer to 3 million due to rounding, just on how we round the numbers on the overall number. I think in your question on the U.S. versus international, the mix was really proportional of what we've seen in the past quarter.

Your next question comes from Jim Suva from Citi.

First, a question, I fully respect you don't want to give detailed guidance given the turnaround of the company, but there was a little bit of commentary given on the prepared remarks about as the year progresses, you expect to see continued pressure on EPS. And I want to make sure that people don't misread that or misinterpret it. One school of thought would be that as BB10 launches in the second half of your fiscal year, you should start to see sequential EPS growth. Or maybe it's just the timing of BB10 makes it so that there'll be continual pressure through the year. Can you just kind of clarify that from your prepared comments? And then my follow-up question is probably for the CFO on the balance sheet, a couple of line items like inventory, the inventory went up, I believe it was about 18% for the quarter, while units came in low and declined quarter-over-quarter, year-over-year. Was that increase in inventory also after the inventory write-down? And kind of what's going on with the inventory? It seems like a little bit of a -- to be blunt, a little bit of suboptimal management there.

Yes. On the inventory, those numbers are net of the provisions. And certainly, as we work through our CORE program, some of the aspects that we're looking at on managing our inventory levels and our exposure there is through demand management, product life cycle and inventory optimization. So those are certainly key focuses where we've got to get better at forecasting and managing our inventory level. And in terms of your first question on the earnings trends going forward, I think it's really related to the timing of BB10, and where we're actually just seeing the product mix as well.

Yes. I mean to elaborate on this a little bit, BB10 is not just a product. BB10 is a platform. I mean just for you all to understand, BB10 is brand-new from top to bottom, right, from a hardware to all the software specs. So it's really -- this is a new platform, right? And the product that we will be launching later this year is the first instantiation, expression of that fantastic platform. Now then we will continue to proliferate this platform into a portfolio, and that needs some time by building the product, getting the product out there, so it's not a kind of like a digital step, right? It's not a 0-1 thing or a black-and-white thing. BB10 will proliferate into the portfolio, which will take a few months or a few quarters. That kind of changes the momentum when BlackBerry 10 comes out later this year, and then we will work with them. We just need to provide high-end aspirational devices on BlackBerry 10. And to the question that we had before, by then, we will have figured out how we then address the mid- and the entry-level tier. So it's a continuum, right? It doesn't happen just with one product being launched. It actually happens when the BB10 portfolio really gets out there and more and more substitutes the existing platform.

Thank you, everyone, for joining our call. A replay of the conference call will be available at approximately 7 p.m. Eastern by dialing (416) 640-1917 and entering passcode 4466496, and a replay of the webcast is also available on the Investor Relations portion at rim.com. Thank you.

Ladies and gentlemen, this concludes the conference call for today. Thanks for participating. Please disconnect your lines.