BlackBerry Reports 43 Percent Year-over-Year Organic Growth in Software License Revenue for the Fiscal 2016 Third Quarter

Total software and services revenue grows 183 percent year over year

WATERLOO, ONTARIO–(Marketwired – Dec. 18, 2015) – BlackBerry Limited (NASDAQ:BBRY)(TSX:BB), a global leader in mobile communications, today reported financial results for the three months ended November 28, 2015 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Q3 Highlights

• Non-GAAP total revenue of $557 million, up 14 percent over Q2 FY16
• Non-GAAP software and services revenue of $162 million, up 183 percent year over year and up 119 percent quarter over quarter
• Adjusted EBITDA of $114 million
• Cash and investments balance of $2.71 billion at the end of the fiscal quarter, including the impact of the recent acquisitions of AtHoc and Good Technology
• Non-GAAP loss of ($0.03) per share
• Completed the acquisitions of AtHoc and Good Technology
• Launched the PRIV in November, the only smartphone that combines BlackBerry-level security with the Google Play App Store’s 1.6 million apps
• Confirmed plans to release OS version 10.3.3 on BlackBerry 10 to support NIAP certification

Q3 Results

Non-GAAP revenue for the third quarter of fiscal 2016 was $557 million with GAAP revenue of $548 million. GAAP revenue reflects a purchase accounting write down of deferred revenue associated with recent acquisitions. The non-GAAP revenue breakdown for the quarter was approximately 29% for software and services, 31% for service access fees (SAF), and 40% for hardware and other revenue.

BlackBerry had 2,713 enterprise customer wins in the quarter. Approximately 70% of third quarter software revenue was recurring.

Non-GAAP net loss for the third quarter was ($15) million, or ($0.03) per share. GAAP net loss for the quarter was ($89) million, or ($0.17) per basic share. Basic GAAP net income reflects a purchase accounting impact of $9 million on GAAP revenue, a non-cash credit associated with the change in the fair value of the debentures of $5 million (the “Q3 Fiscal 2016 Debentures Fair Value Adjustment”), pre-tax charges of $38 million related to restructuring and acquisition costs, stock compensation of $14 million, and amortization of acquired intangibles of $18 million. The impact of these adjustments on GAAP net income and earnings per share is summarized in a table below.

Total cash, cash equivalents, short-term and long-term investments was $2.71 billion as of November 28, 2015. This reflects $15 million of positive free cash flow, $636 million used in acquisition costs for AtHoc and Good Technology and $10 million used to repurchase 1.6 million shares. Excluding $1.25 billion in the face value of our debt, the net cash balance at the end of the quarter was $1.46 billion. Purchase orders with contract manufacturers totaled approximately $298 million at the end of the third quarter, compared to $248 million at the end of the second quarter and down from $565 million in the year ago quarter. Operating cash flow was $19 million.

“I am pleased with our continued progress on BlackBerry’s strategic priorities, leading to 14 percent sequential growth in total revenue for Q3. We delivered accelerating growth in enterprise software and higher revenue across all of our areas of focus,” said Executive Chairman and Chief Executive Officer John Chen. “Our new PRIV device has been well received since its launch in November, and we are expanding distribution to additional carriers around the world in the next several quarters.

“BlackBerry has a solid financial foundation, and we are executing well. To sustain our current direction, we are stepping up investments to drive continued software growth and the additional PRIV launches. I anticipate this will result in sequential revenue growth in our software, hardware and messaging businesses in Q4.”

Outlook

The company continues to anticipate positive free cash flow and adjusted EBITDA.

Vollständige Meldung

BlackBerry Acquiring WatchDox to Bolster Mobile Content Security and Enterprise Collaboration

WATERLOO, ONTARIO–(Marketwired – April 21, 2015) – BlackBerry Limited (NASDAQ:BBRY)(TSX:BB), a global leader in mobile communications, today announced that it has entered into a definitive agreement to acquire WatchDox Ltd. to further enhance BlackBerry’s best-in-class mobile security and give enterprises unmatched control over their files even after data leaves the corporate network. WatchDox’s technology will be offered as a value-added service that complements BlackBerry’s Enterprise Mobility Management (EMM) portfolio, and will be available with BES12, a multi-OS EMM solution.

Terms of the transaction were not disclosed. Completion of the transaction is subject to customary closing conditions.

WatchDox is a data security company offering the most secure enterprise file-sync-and-share (EFSS) solutions that allow users to protect, share and work with their files on any device⁽¹⁾. WatchDox security travels with shared files on both mobile and desktop devices to give organizations full visibility and control over how files are edited, copied, printed or forwarded. The solution also allows end users to revoke access or delete files remotely, enables secure mobile productivity for repositories both in the cloud and on premises, and gives administrators the ability to lock or remove access to files compromised in a data breach.

The addition of WatchDox will extend BlackBerry’s commitment to help organizations securely connect employees with each other and with corporate information across all mobile and desktop platforms. BES12 is the foundation for BlackBerry’s extensive portfolio of enterprise security, productivity, and communication and collaboration services.

„BlackBerry is constantly expanding the potential of data security so that it enables more collaboration and sharing rather than creating limitations,“ said John Chen, BlackBerry Executive Chairman and CEO. „This acquisition represents another key step forward as we transition BlackBerry into the premier platform for secure mobile communications software and applications, supporting all devices and operating systems. Together with last year’s Secusmart acquisition, Samsung partnership, our own internal development efforts, and now the acquisition of WatchDox, we now have capabilities to secure communications end-to-end from voice, text, messaging, data and now enterprise file-sync-and share.“

Headquartered in Palo Alto, California, with research and development facilities in Petah Tikva, Israel, WatchDox serves leading organizations across a variety of industry sectors in which secure collaboration and mobility are essential, including government, healthcare, financial services, manufacturing, law and media.

„Enterprises require secure mobile solutions that enable users to more easily collaborate and increase their productivity. WatchDox meets this need by uniting data-centric security with a user-friendly experience that is highly valued by our customers,“ said Moti Rafalin, WatchDox CEO and founder. „The combination of BlackBerry’s security leadership and EMM portfolio with WatchDox technology will bring the most productive and collaborative mobility solution to organizations that need innovative ways to conduct business securely and efficiently.“

„Sharing data outside the corporate walls can significantly increase workforce productivity, but can open an enterprise to serious financial and reputational risk if not implemented with the proper control,“ said Maribel Lopez, Principal and Founder, Lopez Research. „WatchDox provides this control and truly focuses on data-centric security. Their enterprise file-sync-and-share technology will be an important enhancement to BlackBerry’s cross-platform EMM portfolio, as it delivers new capabilities while ensuring the level of security that enterprises have come to expect from BlackBerry.“

The acquisition of WatchDox will form the basis of a new security-focused BlackBerry R&D center in Israel. BlackBerry’s acquisition of WatchDox follows last year’s purchase of Secusmart, a leader in high-security voice and data encryption, and is the latest demonstration of the company’s commitment to being the first name in enterprise mobile security. This commitment is why BlackBerry customers include all G7 governments, 16 of the G20 governments, 10 out of 10 of the largest global banks and law firms, and the top five largest managed healthcare, investment services, and oil and gas companies. BlackBerry also has more security certifications than any other vendor and BlackBerry 10 is the only mobility solution to receive „Full Operational Capability“ (FOC) approval to run on U.S. Department of Defense networks.

⁽¹⁾ „Critical Capabilities for Enterprise File Synchronization and Sharing,“ 13 August 2014, Gartner

About BlackBerry

A global leader in mobile communications, BlackBerry® revolutionized the mobile industry when it was introduced in 1999. Today, BlackBerry aims to inspire the success of our millions of customers around the world by continuously pushing the boundaries of mobile experiences. Founded in 1984 and based in Waterloo, Ontario, BlackBerry operates offices in North America, Europe, Middle East and Africa, Asia Pacific and Latin America. The Company trades under the ticker symbols „BB“ on the Toronto Stock Exchange and „BBRY“ on the NASDAQ. For more information, visit www.BlackBerry.com.

About WatchDox

WatchDox is the leading secure enterprise file-sync-and-share (EFSS) solution, enabling users to share, work with and control their files on every device. Available as SaaS, a virtual appliance or a hybrid, the award-winning WatchDox platform provides a single pane of glass to work with personal and enterprise content, uniquely combining consumer-style app interfaces with security that can be dialed up to suit any enterprise use case. More than 150 of the Fortune 1000 – including the largest civilian federal agencies, six of the top twelve private equity firms and five of the six major Hollywood studios, healthcare firms and manufacturers – depend on WatchDox secure file-sharing solutions. For more information, visit www.WatchDox.com.

Forward-looking statements in this news release are made pursuant to the „safe harbor“ provisions of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used herein, words such as „expect“, „anticipate“, „estimate“, „may“, „will“, „should“, „intend“, „believe“, and similar expressions, are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry Limited in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances. Many factors could cause BlackBerry’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including those described in the „Risk Factors“ section of BlackBerry’s Annual Information Form, which is included in its Annual Report on Form 40-F (copies of which filings may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on BlackBerry’s forward-looking statements. BlackBerry 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 law.

BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the U.S. and countries around the world. All other marks are the property of their respective owners. BlackBerry is not responsible for any third-party products or services.

BlackBerry Reports Non-GAAP Profitability and Positive Cash Flow for the Fiscal 2015 Fourth Quarter

Reports GAAP Profitability, Software Revenue Grows 24% Sequentially

WATERLOO, ONTARIO–(Marketwired – March 27, 2015) – BlackBerry Limited (NASDAQ:BBRY)(TSX:BB), a global leader in mobile communications, today reported financial results for the three months and fiscal year ended February 28, 2015 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Q4 Highlights

• Normalized positive cash flow of $76 million in the quarter, reversing normalized cash use of ($784) million in Q4 FY14
• Cash and investments balance of $3.27 billion at the end of the fiscal quarter, an increase of $608 million over Q4 FY14 and matching the highest balance in company history
• Non-GAAP earnings of $0.04 per share, reversing a loss per share of ($0.08) in Q4 FY14
• Non-GAAP operating income of $2 million reversing an operating loss of ($156) million in Q4 FY14
• Non-GAAP gross margin of 48.3% and GAAP gross margin of 48.2%, with a third consecutive quarter of positive hardware gross margin
• Software revenue of $67 million, a 20% increase over Q4 FY14
• Announced a partnership with Google to support Android for Work
• Launched the BlackBerry Classic in December, with support for the Classic and the previously-released Passport by major carriers, including Telus, Bell, Rogers, AT&T, Verizon, Vodafone and Orange
• Completed the acquisition of Secusmart, a leader in high-security voice and text encryption
• After the quarter at Mobile World Congress, announced the full-touch BlackBerry Leap and unveiled the upcoming BlackBerry device portfolio
• Also at Mobile World Congress, announced the BlackBerry Experience Suite software portfolio that brings BlackBerry’s productivity, communication, collaboration and security across all smartphone and tablets running iOS®, Android, and Windows®
• Other product announcements at Mobile World Congress included BES 12 Cloud, integration of WorkLife and SecuSUITE with Samsung KNOX, and Vodafone Germany’s rollout of Secusmart technology

Q4 Results

Revenue for the fourth quarter of fiscal 2015 was approximately $660 million, including a negative $12 million impact from currency fluctuation. The revenue breakdown for the quarter was approximately 42% for hardware, 47% for services and 10% for software. During the fourth quarter, the Company recognized hardware revenue on approximately 1.3 million BlackBerry smartphones. Approximately 1.6 million BlackBerry smartphones were sold through to end customers, with an ASP of $211 compared to $180 in the previous quarter.

Non-GAAP profit for the fourth quarter was $20 million, or $0.04 per share, compared to earnings of $0.01 per share last quarter. GAAP net income for the quarter was $28 million, or $0.05 per share. GAAP net income includes a non-cash charge associated with the change in the fair value of the debentures of $50 million (the „Q4 Fiscal 2015 Debentures Fair Value Adjustment“), investment income of $115 million related to the Rockstar sale (the „Rockstar Sale Adjustment“) and pre-tax charges of $58 million related to the restructuring program. The impact of these adjustments on GAAP net income and earnings per share is summarized in a table below. Total cash, cash equivalents, short-term and long-term investments was $3.27 billion as of February 28, 2015. The cash balance increased $156 million in the fourth quarter, including net gains of $80 million related to acquisitions and divestitures during the quarter. Aggregate contractual obligations amounted to approximately $1.3 billion as at February 28, 2015, compared to $1.6 billion at the end of the third quarter. Purchase orders with contract manufacturers totaled approximately $394 million at the end of the fourth quarter, compared to $565 million at the end of the third quarter. Excluding the impact of foreign exchange, operating cash flow was $205 million with free cash flow (operating cash flow minus capital expenditures) of $189 million.

„Our focus this past year was on getting our financial house in order while creating a multi-year growth strategy and investing in our product portfolio. We now have a very good handle on our margins, and our product roadmaps have been well received,“ said Executive Chairman and CEO John Chen. „The second half of our turnaround focuses on stabilization of revenue with sustainable profitability and cash generation.“

Outlook

The Company continues to anticipate positive free cash flow. The Company is expanding its distribution capability, and expects traction from these efforts to manifest some time in fiscal 2016. The company continues to target sustainable non-GAAP profitability some time in fiscal 2016.

Conference Call and Webcast

A conference call and live webcast will be held beginning at 8 am ET, which can be accessed by dialing 1-888-503-8168 or by logging on at http://ca.blackberry.com/company/investors/events.html. A replay of the conference call will also be available at approximately 10 am ET by dialing 1-647-436-0148 and entering pass code 8015758# or by clicking the link above. This replay will be available until midnight ET April 10th, 2015.

Las Vegas, 2015 International CES –AT&T¹ and BlackBerry Limited (NASDAQ: BBRY; TSX: BB), a global leader in mobile communications, today announced that the newly redesigned BlackBerry® Passport will be available exclusively at www.att.com and in AT&T retail stores. Additional availability will be announced in coming weeks.

Built for productivity, the BlackBerry Passport has been uniquely designed for AT&T users with rounded edges. The BlackBerry Passport has a large 4.5-inch square touch screen and a touch-enabled QWERTY keyboard, giving users ideal content viewing without compromising portability. Built on BlackBerry’s secure 10.3.1 operating system, the BlackBerry Passport will run on AT&T’s network: the nation’s most reliable 4G LTE network and the network that has the nation’s strongest LTE signal,² covering more than 300 million Americans, allowing AT&T users to stay on top of business needs every day.

The BlackBerry Passport will be available in the near future for $0 down on an AT&T Next plan at $21.67 per month with AT&T Next 24,³ $27.09 with AT&T Next 18³ or $32.50 per month with AT&T Next 12.³ You can also get the smartphone for $199.99 with a two-year agreement⁴ or at no annual commitment for $649.99.⁵

“The BlackBerry Passport is ideal for the power professional who wants an innovative wireless device focused on productivity,” said Jeff Bradley, SVP, Device Marketing and Developer Services, AT&T. “Available first on the AT&T network in the U.S., customers will benefit from the newly redesigned Passport’s enhanced features, including a wider screen, 32 GB of storage, and a 3450 mAh battery.”

“We value our continued partnership with AT&T and we look forward to launching the new and uniquely designed BlackBerry Passport device for AT&T customers in the U.S.,” Ron Louks, President, Devices and Emerging Solutions at BlackBerry. “Built with security at its core, the BlackBerry Passport stands apart from the rectangular-screen, all-touch devices in the market today, offering users more than a full day of battery life and new innovations, including the industry’s first touch-enabled QWERTY keyboard.”

The BlackBerry Passport boasts a 453 dpi, a 4.5-inch square full HD screen, 2.2 GHZ Quad Core Qualcomm processor, a 13 MP OIS Camera and 32 GB of Storage. Additional key features include:

• BlackBerry® Keyboard: The BlackBerry Passport’s revolutionary new keyboard brings innovation to input with a responsive touch surface that lets you perform many functions directly on the keyboard. You can scroll web pages, flick to type or slide along the keys to move the cursor, leaving the full screen space for viewing.
• BlackBerry® 10 OS 10.3.1: The BlackBerry Passport comes preloaded with the BlackBerry 10.3.1 operating system, and comes with a fresh look that incorporates updated icons and an action bar so that each user’s most commonly accessed functions are in the center of their screen.
• BlackBerry® Blend: BlackBerry Blend allows customers to securely access messaging and content, through their smartphone, on their compatible computer and tablet.⁶ Customers can now receive instant notifications, read and respond to work and personal messages, and access documents, calendar, contacts and media in real time on whatever device they are working on.
• BlackBerry® Assistant: BlackBerry Assistant is a voice and text command application that enables users to manage work and personal email, contacts, calendar and other BlackBerry® 10 features through simple commands.
• Battery Power Designed to Keep Up with You: Known for its enduring battery life, Blackberry does not disappoint with the BlackBerry Passport. The BlackBerry Passport delivers BlackBerry’s best battery performance to date with a powerful 3450 mAh battery and optimization of power consumption with up to 30 hours of mixed use.
• BlackBerry® Hub: Offering a better way to manage emails, social messages, BBM^TM and notifications, BlackBerry Hub makes all of your conversations available with one swipe. BlackBerry Priority Hub offers a filtering solution so you can respond to messages by importance.  With Instant Actions in Hub customers can quickly delete or file multiple messages, as well as accept meeting invites without having to open the invitation.

 

AT&T was the first wireless carrier to launch a BlackBerry device in the U.S. with the BlackBerry 950 in 1999; first with a GSM enabled product with the BlackBerry 5810 and 5820 in 2002; and the first and only to launch the exclusive BlackBerry Torch with full QWERTY keyboard and touchscreen in 2011. The BlackBerry Z10 was the first BlackBerry smartphone to run on AT&T’s 4G LTE network.

AT&T is committed to delivering fast and friendly service to its customers. AT&T was recognized as the highest ranked wireless provider for overall purchasing experience by J.D. Power,⁸ for the third time in a row.  AT&T outperformed competitors in the J.D. Power 2014 Volume 2 study and received the “Highest Satisfaction with the Purchase Experience among Full-Service Wireless Providers, Three Times in a Row.”

For more information about the BlackBerry Passport, visit att.com/blackberrypassport orwww.blackberry.com/passport.

¹AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

² Nationwide carriers’ LTE.  Signal strength claim based ONLY on avg. LTE signal strength.  LTE not avail. everywhere.

³Requires 20-mth or 24-mth 0% APR installment agreement and qualifying credit and wireless service. Tax due at sale.  If wireless service cancelled, device balance due. Service costs additional. Other charges and restrictions apply.  AT&T Next Requirements: www.att.com/shop/wireless/next.html#fbid=mkEz9ThvDiO.

⁴$199.99 pricing. Requires 2-year agreement with qualifying data plan. Activation/upgrade, early termination and other fees, and restrictions apply. Pricing Requirements: www.att.com/att/planner/index.html#fbid=yRbS77904im.

⁵Requires activation of new line of qualified wireless service. 

⁶ Requires download of BlackBerry® Blend app and pairing with a compatible device.  BlackBerry Blend works across desktop operating systems, including Mac OS X 10.7 + and Windows 7+, iPad tablets running iOS 7+ and Android tablets running Android 4.4+.  For more information visit www.BlackBerry.com/Blend.

⁷ Based on mixed usage scenario. Many factors affect battery life, including network, application usage, feature configuration and battery age. Actual results may vary.

⁸AT&T received the highest numerical score among full service wireless providers in the proprietary J.D. Power 2013 (Vol. 2) and 2014 (Vol. 1 & 2) Full Service Wireless Purchase Experience Study^SM. 2014 Vol. 2 based on responses from 10,079 consumers measuring 4 full service wireless providers and measures opinions of consumers who purchased a wireless product or service within last 6 months.  Proprietary study results are based on experiences and perceptions of consumers surveyed January-June 2014.  Your experiences may vary. Visit jdpower.com.

About AT&T

AT&T Inc. (NYSE:T) is a premier communications holding company and one of the most honored companies in the world. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and internationally. With a powerful array of network resources that includes the network with the nation’s strongest LTE signal as well as the nation’s most reliable LTE network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet, voice and cloud-based services. A leader in mobile Internet, AT&T also offers the best global wireless coverage, based on offering voice and data roaming in more countries than any other U.S. based carrier, and offering the most wireless smartphones and tablets that work in the most countries. It also offers advanced TV service with the AT&T U-verse^® brand. The company’s suite of IP-based business communications services is one of the most advanced in the world.

Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at www.att.com/aboutus or follow our news on Twitter at @ATT, on Facebook atwww.facebook.com/att and YouTube at www.youtube.com/att.

© 2015 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

About BlackBerry

A global leader in mobile communications, BlackBerry® revolutionized the mobile industry when it was introduced in 1999. Today, BlackBerry aims to inspire the success of our millions of customers around the world by continuously pushing the boundaries of mobile experiences. Founded in 1984 and based in Waterloo, Ontario, BlackBerry operates offices in North America, Europe, Middle East and Africa, Asia Pacific and Latin America. The Company trades under the ticker symbols „BB“ on the Toronto Stock Exchange and „BBRY“ on the NASDAQ. For more information, visit www.BlackBerry.com.

The BlackBerry family of related marks, images and symbols are the exclusive properties and trademarks of BlackBerry Limited.  BlackBerry, BBM, QNX and related trademarks are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries.  All other brands, product names, company names, trademarks and service marks are the properties of their respective owners.

WATERLOO, ONTARIO–(Marketwired – Dec. 19, 2014) – BlackBerry Limited (NASDAQ:BBRY)(TSX:BB), a global leader in mobile communications, today reported financial results for the three months ended November 29, 2014 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Q3 Highlights:

• Cash and investments balance of $3.1 billion at the end of the fiscal quarter
• Normalized positive cash flow of $43 million in the quarter, compared to cash use of $36 million in the prior quarter
• Non-GAAP earnings of $0.01 per share compared to a loss of $0.02 per share in the prior quarter
• Non-GAAP and GAAP gross margin of 52%, driven by a second consecutive quarter of positive hardware gross margin
• Non-GAAP operating profit of $16 million, up from $2 million last quarter
• Launched BES12 and a portfolio of Value Added Services
• Ending the EZ Pass Program after the quarter with a total of 6.8 million licenses issued for BES10, a 100% increase from last quarter, with over 30% of total licenses traded in from competitors‘ Mobile Device Management platforms
• Completed the acquisition of Movirtu, a provider of virtual SIM solutions, during the quarter. Completed the acquisition of Secusmart, a leader in high-security voice and text encryption, after the quarter ended
• Announced partnerships with Samsung, Vodafone, Ingram Micro, Brightstar, Salesforce.com and many others

Q3 Results

Revenue for the third quarter of fiscal 2015 was $793 million. The revenue breakdown for the quarter was approximately 46% for hardware, 46% for services and 8% for software and other revenue. During the third quarter, the Company recognized hardware revenue on approximately 2 million BlackBerry smartphones. During the third quarter, approximately 1.9 million BlackBerry smartphones were sold through to end customers, which included shipments made and recognized prior to the third quarter and which reduced the Company’s inventory in channel.

Non-GAAP profit for the third quarter was $6 million, or $0.01 per share, reversing a loss of $0.02 last quarter. GAAP net loss for the quarter was $148 million, or $0.28 per share. The GAAP net loss includes a non-cash charge associated with the change in the fair value of the debentures of $150 million (the „Q3 Fiscal 2015 Debentures Fair Value Adjustment“) and pre-tax restructuring charges of $5 million related to the restructuring program. The impact of these adjustments on GAAP net loss and loss per share is summarized in a table below.

Total cash, cash equivalents, short-term and long-term investments was $3.1 billion as of November 29, 2014. The cash balance increased $43 million in the third quarter, excluding net outlays of $31 million related to acquisitions during the quarter. Purchase obligations and other commitments amounted to approximately $1.6 billion as of November 29, 2014, with purchase orders with contract manufacturers representing approximately $565 million of the total, compared to $344 million at the end of the second quarter.

„We achieved a key milestone in our eight quarter plan with positive cash flow. We also attained another important milestone in the release of our new enterprise software products and devices,“ said Executive Chairman and CEO John Chen. „Our focus now turns to expanding our distribution and driving revenue growth.“

Outlook

The Company continues to anticipate maintaining its strong cash position, while increasingly looking for opportunities to prudently invest in growth. The Company continues to anticipate break-even or better cash flow from operations.

The Company is expanding its distribution capability, and expects traction from these efforts to manifest some time in fiscal 2016. The company continues to target sustainable non-GAAP profitability some time in fiscal 2016.

Waterloo, ON – BlackBerry Limited (NASDAQ: BBRY; TSX: BB), a global leader in mobile communications, announced today that Ingram Micro, Orange France SA, Verizon Wireless, Vodafone, DMI and many other partners and mobile operators around the world are now offering BES12: a cross-platform EMM solution by BlackBerry®made available today. BlackBerry has worked closely with a broad-base of global resellers to ensure that its enterprise product portfolio is delivered effectively and swiftly into the market.

BlackBerry was named a Leader and achieved the top score in EMM strategy in the Forrester Wave: Enterprise Mobile Management, Q3 2014¹. As the leading EMM provider, BlackBerry customers include all G7 governments, 16 of the G20 governments, 10 out of 10 of the largest global enterprises in each of the pharmaceutical, law firm and automotive industries, and the top five largest oil and gas companies in the world.

BES12 provides expanded EMM capabilities that can manage any mobile deployment model such as BYOD, COPE and COBO, and is built on BlackBerry’s trusted network. The BES12 platform supports iOS, Android, Windows Phone®, BlackBerry® 10 and BlackBerry® OS. Key benefits of BES12 include:

• Comprehensive Cross-Platform EMM: Provides complete management and security for devices, applications and company data across all major enterprise device platforms and all tiers of device ownership and deployment models.
• End-to-End Security: Leverages advanced encryption, containerization, application wrapping and BlackBerry’s secure global infrastructure. Provides end-to-end, platform-level security that keeps an organization’s data safe and secure while in transit and at rest.
• Scalable Architecture: Scalable up to 25,000 devices per server and 150,000 devices per domain. BES12 is designed to reduce deployment cost and complexity and ensure maximum uptime with support for active-active high availability. It can be deployed on-premise or through a private cloud — and will soon be available via hybrid or public clouds.
• Streamlined User Experience: Enables administrators to holistically manage all users, devices, policies and profiles natively, from one easy-to-use unified console. A new attribute-driven, endpoint management model enables more flexible management of devices, applications and data. Comprehensive reporting and dashboards simplify the management of complex fleets of devices.
• Industry Leading Total Cost of Ownership:The recent study by Strategy Analytics, Enterprise Mobility Management: A Review of Total Cost of Ownership, found that BES is the lowest cost EMM solution based on the five year total cost of ownership (TCO). The study found that migrating from BES5 to a BlackBerry competitor is, on average, more than double the cost over five years than migrating from BES5 to the next generation of BES².
• Design for Internet of Things: BES12 is the first BES platform that will extend beyond smartphones and tablets to support the management of things, including medical diagnostic equipment, industrial machinery and automobiles.
• Global Support: All BES12 subscriptions include industry leading BlackBerry Technical Support Services to help manage the complexity and demanding requirements of mobility and evolving EMM strategies.
• Enhanced SIM-based Licensing: BlackBerry’s exclusive connection to over 675 mobile operators around the world allows the BES12 platform to be licensed to a global network across all supported device platforms on a monthly subscription basis.

Waterloo, ON– BlackBerry Limited (NASDAQ: BBRY; TSX: BB), a global leader in mobile communications, today announced a strategic partnership with Samsung Electronics Co., Ltd. to provide a highly secure mobility solution for Android.  As a result, early next year, enterprise customers will have a new choice: a tightly integrated, end-to-end secure solution that brings together BES12: a cross-platform EMM solution by BlackBerry® with Samsung Galaxy smartphones and tablets that are embedded with Samsung KNOX.

“BlackBerry and Samsung’s creation of an integrated enterprise solution for Android makes sense,” said Bloomberg Head of Enterprise Mobility, Chris Behringer. “Security is a top priority for us, and this combined offering provides a new versatile option to the marketplace.”

With KNOX, Samsung has created a set of Android devices capable of safeguarding enterprise data with multiple layers of hardware- and software- based protection. BlackBerry brings to the partnership a class-leading cross-platform enterprise mobility management (EMM) solution and a highly secure network infrastructure. Working together, the companies can now offer enterprises with a new and highly secure mobility option.

Options are critical for organizations looking to meet all their business and security needs. A global study released today[1] found that 76 percent of people in regulated industries say that the risk of legal liability and costly lawsuits will increase unless organizations make a concerted effort to adopt a comprehensive enterprise mobility management strategy.

“We share the goal to provide enterprises with the most secure mobility solutions through this partnership with BlackBerry,” said Injong Rhee, Senior Vice President of KNOX Business Group, Samsung Electronics. “Samsung KNOX is focused on delivering secure mobility solutions to enterprises and, combined with BES12, we will offer more options for customers that need enhanced levels of security on Android devices.”

“BlackBerry has developed a very close partnership with Samsung and we’re committed to deepening the interaction between our engineering and product development teams for the long-term,” said John Sims, President of Global Enterprise Services, BlackBerry. “It is a natural progression in our path to providing our customers with more alternatives to meet their evolving mobile needs. Samsung KNOX offers a number of hardware and software security features and our partnership allows us to tightly integrate these capabilities with BES12.”

With BES12 and Samsung KNOX, customers can take advantage of the following benefits:

• An integrated solution that brings together the secure connectivity and class-leading device, applications and data management capabilities BlackBerry is known for together with the security features embedded in Samsung Galaxy devices.
• Android security enhancements that reduce threats that bypass application security mechanisms while minimizing damage from flawed applications.
• Complete separation of business and personal data for uncompromised corporate security and employee privacy.
• A series of core security enhancements to better protect device integrity from kernel to apps.
• Enhanced user experience Workspace for a more flexible approach for enterprise deployment.

Availability is expected in early 2015. Samsung will resell BES12 to joint customers and BlackBerry will offer KNOX support as part of the Gold family of BES12 subscriptions. Pricing will be announced upon availability.

The ability to manage Samsung Galaxy devices with KNOX embedded is just one of the many features included in BES12. To learn more about BES12, visit www.BlackBerry.com/bes12.

Waterloo, ON – BlackBerry Limited (NASDAQ: BBRY; TSX: BB), a global leader in mobile communications announced today an agreement with Salesforce to connect its No. 1 customer relationship management (CRM) platform to BlackBerry’s enterprise mobility management (EMM) solutions. The partnership highlights the companies’ mutual dedication to provide highly secure enterprise services and offerings that meet the demands of regulated industries that require the highest levels of security.

With this partnership, BlackBerry and Salesforce joint customers will have access to a fully secure cross-platform, mobile end-to-end solution. BlackBerry launched today BES12: a cross-platform EMM solution by BlackBerry®that securely manages devices from all of the major enterprise mobile platforms. BES12 is the foundation for BlackBerry’s extensive portfolio of enterprise security, productivity, and communication and collaboration services that will help organizations securely connect employees with each other, corporate information and the machines that are required to get their jobs done.

“This agreement will allow Salesforce and BlackBerry joint customers to run their businesses from their phone while complying with specific industry regulations,” said Vivek Kundra, Executive Vice President, Salesforce. “BlackBerry has an excellent reputation in security and networks, and when matched with the Salesforce Customer Success Platform, public sector organizations can use their mobile devices to connect with customers in a whole new way.“

“BlackBerry pioneered the capability to securely manage smartphones within the enterprise. Now, by working with Salesforce, we’re demonstrating how we’re taking our know-how and offerings beyond EMM,” said Marty Beard, Chief Operating Officer, BlackBerry. “Our partnership with Salesforce will empower workers to be more secure and productive, and businesses to be more profitable.”

According to a global study released today, 59 percent of respondents say that the number of data breaches that their organization has experienced through mobile devices has increased in the last 12 months, while 68 percent believe that mobile devices are the weakest link in their enterprise security framework.¹

By extending BlackBerry’s partnership with Salesforce, customers will benefit from the industry leading EMM, messaging and security capabilities used by all G7 governments, 16 of the G20 governments, 10 out of 10 of the largest global enterprises in each of the pharmaceutical, legal and automotive industries. BlackBerry was also named a Leader and achieved the top score in EMM strategy in the Forrester Wave: Enterprise Mobile Management, Q3 2014.²

 

WATERLOO, ONTARIO–(Marketwired – June 19, 2014) – BlackBerry Limited (NASDAQ:BBRY)(TSX:BB), a global leader in mobile communications, today reported financial results for the three months ended May 31, 2014 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Q1 Highlights:

• Cash and investments balance of $3.1 billion at the end of the fiscal first quarter, up from $2.7 billion in the prior quarter
• Adjusted Q1 gross margin of 48%, up from 43% in the prior quarter
• Reduced adjusted operating expenses by 57% year over year and 13% quarter over quarter
• Successfully launched the new Z3 device in Indonesia; 8 additional countries to follow
• EZ Pass Program resulted in a total of 1.2 million licenses issued for BES10, including more than 10% of total licenses traded in from competitors‘ Mobile Device Management platforms
• Launched Project Ion focused on the „Internet of Things“ market

Q1 Results

Revenue for the first quarter of fiscal 2015 was $966 million, down $10 million or 1% from $976 million in the previous quarter. The revenue breakdown for the quarter was approximately 39% for hardware, 54% for services and 7% for software and other revenue. During the first quarter, the Company recognized hardware revenue on approximately 1.6 million BlackBerry smartphones compared to approximately 1.3 million BlackBerry smartphones in the previous quarter. During the first quarter, approximately 2.6 million BlackBerry smartphones were sold through to end customers, which included shipments made and recognized prior to the first quarter and which reduced the Company’s inventory in channel.

GAAP net income for the first quarter was $23 million, or $0.04 earnings per share („EPS“). The net income includes non-cash income associated with the change in the fair value of the Debentures of $287 million (the „Q1 Fiscal 2015 Debentures Fair Value Adjustment“) and pre-tax restructuring charges of $226 million related to the Cost Optimization and Resource Efficiency („CORE“) program. Excluding these items, adjusted loss for the first quarter was $60 million, or $0.11 per share. These impacts on GAAP net income and EPS are summarized in the table below.

The total of cash, cash equivalents, short-term and long-term investments was $3.1 billion as of May 31, 2014, compared to $2.7 billion at the end of the previous quarter – a net increase of $429 million. Excluding receipt of a tax refund of $397 million and proceeds on the sale of real estate of $287 million, the Company used $255 million in the first quarter. This represents a decrease from $784 million used last quarter, after excluding proceeds of $250 million related to convertible debt issuance. Purchase obligations and other commitments amounted to approximately $1.8 billion as at May 31, 2014, with purchase orders with contract manufacturers representing approximately $317 million of the total.

„Our performance in fiscal Q1 demonstrates that we are firmly on track to achieve important milestones, including our financial objectives and delivering a strong product portfolio,“ said John Chen, Executive Chairman and Chief Executive Officer of BlackBerry. „Over the past six months, we have focused on improving efficiency in all aspects of our operations to drive cost reductions and margin improvement. Looking forward, we are focusing on our growth plan to enable our return to profitability.“

Outlook

The Company anticipates maintaining its strong cash position, while increasingly looking for opportunities to prudently invest in growth. The Company is targeting break-even cash flow results by the end of fiscal 2015.

Reconciliation of GAAP gross margin, gross margin percentage, loss before income taxes, and net income to adjusted gross margin, adjusted gross margin percentage, adjusted loss before income taxes, adjusted net loss and adjusted loss per share:

(United States dollars, in millions except per share data)

Note: Adjusted gross margin, adjusted gross margin percentage, adjusted loss before income taxes, adjusted net loss and adjusted loss per share do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company’s operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of the Company’s GAAP results.

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