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 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.

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, 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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