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BlackBerry Ltd (BB).

About us

A global leader in mobile communications, BlackBerry[R] 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, Asia Pacific and Latin America. The company trades under the ticker symbols "BB" on the Toronto Stock Exchange and "BBRY" on the NASDAQ.

http://ca.blackberry.com/company.html

BlackBerry Reports First Quarter Fiscal 2020 Total Company Non-GAAP Revenue Growth of 23% Year-Over-Year and GAAP Revenue Growth of 16% Year-Over-Year -- 26/6/2019

First Quarter Fiscal 2020:

* First quarter fiscal 2020 total company non-GAAP revenue of $267 million, or 23% growth year-over-year; total company GAAP revenue of $247 million, or 16% growth year-over-year

* First quarter fiscal 2020 total non-GAAP Software and Services revenue of $260 million, a record quarterly high; total GAAP Software and Services revenue of $240 million

* First quarter fiscal 2020 non-GAAP BlackBerry Software and Services (excluding Cylance) revenue growth of 8% year-over-year; GAAP BlackBerry Software and Services (excluding Cylance) revenue growth of 10% year-over-year

* First quarter fiscal 2020 non-GAAP earnings per basic and diluted share of $0.01; GAAP loss per basic share of $0.06 and GAAP loss per diluted share of $0.09

* First quarter fiscal 2020 free cash flow usage of $49 million, before considering the impact of acquisition and integration expenses, restructuring costs and legal proceedings; free cash flow usage of $66 million, as reported

WATERLOO, Ont. -- June 26, 2019 -- BlackBerry Limited (NYSE: BB; TSX: BB) today reported financial results for the three months ended May 31, 2019 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

First Quarter Fiscal 2020 Results

* Total company non-GAAP revenue for the first quarter of fiscal 2020 was $267 million, up 23% year-over-year. Total company GAAP revenue for the first quarter of fiscal 2020 was $247 million, up 16% year-over-year. Total non-GAAP software and services revenue of $260 million, up 35% year-over-year. Total GAAP software and services revenue was $240 million, up 27% year-over-year. First quarter recurring non-GAAP software and services revenue (excluding IP licensing and professional services) was above 90%. Non-GAAP gross margin was 75% and GAAP gross margin was 72%.

* Non-GAAP operating income was $5 million. GAAP operating loss was $36 million. Non-GAAP earnings per share was $0.01 (basic and diluted). GAAP net loss was $0.06 per basic share and $0.09 per diluted share. GAAP net loss includes $35 million for acquired intangibles amortization expense, $17 million in stock compensation expense, $1 million in acquisition and integration charges, a benefit of $28 million related to the fair value adjustment on the debentures, and other amounts as summarized in a table below.

* Total cash, cash equivalents, short-term and long-term investments was $935 million as of May 31, 2019. Free cash flow used, before considering the impact of acquisition and integration expenses, restructuring costs and legal proceedings, was $49 million. Cash used in operations was $64 million and capital expenditures were $2 million.

"We are off to a good start to achieve our financial outlook for fiscal 2020," said John Chen, Executive Chairman and CEO, BlackBerry. "We are ahead of our schedule in our Cylance integration, while investing in the right opportunities to drive long-term growth and profitability for BlackBerry. Customers are looking forward to our robust product cycle this year, with over 30 new secure communication products and services to be released."

Outlook

BlackBerry re-affirms its fiscal 2020 outlook of total company year-over-year non-GAAP revenue growth and non-GAAP profitability for fiscal 2020.

Fiscal 2020 total company non-GAAP revenue growth of between 23% and 27%, driven by a double-digit percentage increase in billings. Non-GAAP revenue growth is broken down as follows:

* IoT year-over-year non-GAAP revenue growth of between 12% to 16%;

* BlackBerry Cylance year-over-year non-GAAP revenue growth of between 25% to 30%;

* Licensing year-over-year non-GAAP revenue decline of 5%; and

* Non-GAAP service access fees to be between $10 and $20 million of revenue in FY20.

Reconciliation of GAAP revenue, gross margin, gross margin percentage, income (loss) before income taxes, net income (loss) and basic earnings (loss) per share to Non-GAAP revenue, gross margin, gross margin percentage, income before income taxes, net income and basic earnings per share for the three months ended February 28, 2019:
Q1 Fiscal 2020 Non-GAAP Adjustments           For the May 31, 2019
                                              (in millions, except for
                                              per share amounts)
                          Income statement    Revenue  Gross margin
                          location                     (before taxes)

As reported                                   $247     $177
Debentures fair value     Debentures lair     -        -
adjustment (2)            value adjustment
RAP charges (3)           Cost or sales       -           1
Software deferred         Revenue               20       20
revenue acquired (4)
Software deferred         Selling, marketing  -        -
commission                and administration
expense acquired (5)
Stock compensation        Cost or sales       -           1
expense (6)
Stock compensation        Research and        -        -
expense (6)               development
Stock compensation        Selling, marketing  -        -
expense (6)               and administration
Acquired intangibles      Amortization        -        -
amortization (7)
Business acquisition and  Selling, marketing  -        -
integration costs (8)     and administration
Acquisition valuation     Income taxes        -        -
allowance (9)
Adjusted                                      $267     $199

Q1 Fiscal 2020 Non-GAAP   For the May 31, 2019
Adjustments               (in millions, except for per share amounts)
                          Gross     Income (loss)  Net     Basic
                          margin    before income  income  earnings
                          %(before  taxes          (loss)  (loss) per
                          taxes)                           share

As reported               71.7%     $(33)          $(35)   $(0.06)
Debentures fair value        -%      (28)           (28)
adjustment (2)
RAP charges (3)            0.4%        1              1
Software deferred          2.1%       20             20
revenue acquired (4)
Software deferred            -%       (5)            (5)
commission
expense acquired (5)
Stock compensation         0.3%        1              1
expense (6)
Stock compensation           -%        3              3
expense (6)
Stock compensation           -        13             13
expense (6)
Acquired intangibles         -%       35             35
amortization (7)
Business acquisition and     -%        1              1
integration costs (8)
Acquisition valuation        -%        -             (1)
allowance (9)
Adjusted                  74.5%       $8             $5     $0.01

Note: Non-GAAP revenue, non-GAAP gross margin, non-GAAP gross margin
percentage, non-GAAP income before income taxes, non-GAAP net income
and non-GAAP basic earnings 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.

(1) During the first quarter of fiscal 2020, the Company reported GAAP
gross margin of $177 million or 71.7% of revenue. Excluding the impact
of stock compensation expense and restructuring charges included in
cost of sales and software deferred revenue acquired included in
revenue, non-GAAP gross margin was $199 million, or 74.5% of revenue.
(2) During the first quarter of fiscal 2020, the Company recorded the
Q1 Fiscal 2020 Debentures Fair Value Adjustment of $28 million. This
adjustment was presented on a separate line in the Consolidated
Statements of Operations.
(3) During the first quarter of fiscal 2020, the Company incurred
restructuring charges of approximately $1 million, which was included
in cost of sales.
(4) During the first quarter of fiscal 2020, the Company recorded
software deferred revenue acquired but not recognized due to business
combination accounting rules of $20 million, of which $19 million was
included in BlackBerry Cylance and $1 million was included in IoT.
(5) During the first quarter of fiscal 2020, the Company recorded
deferred commission expense acquired but not recognized due to business
combination accounting rules of approximately of $5 million.
(6) During the first quarter of fiscal 2020, the Company recorded stock
compensation expense of $17 million, of which $1 million was included
in cost of sales, $3 million was included in research and development,
and $13 million was included in selling, marketing and administration
expense.
(7) During the first quarter of fiscal 2020, the Company recorded
amortization of intangible assets acquired through business
combinations of $35 million, which was included in amortization expense.
(8) During the first quarter of fiscal 2020, the Company recorded
business acquisition and integration costs incurred through business
combinations of $1 million, which was including in selling, marketing
and administration expenses.
(9) During the first quarter of fiscal 2020, the Company recorded
income tax valuation allowance related to the acquisition of Cylance
Inc. of $1 million, which was included in provision for income taxes.


https://www.blackberry.com/us/en/company/newsroom/press-releases/2019/blackberry-reports-first-quarter-fiscal-2020-total-company-revenue-growth
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Title Annotation:Leading Companies
Publication:Canada Telecommunications
Date:Aug 14, 2019
Words:1400
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