BlackBerry Ltd (BB).
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.
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."
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.
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|Title Annotation:||Leading Companies|
|Date:||Aug 14, 2019|
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