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Friday, Jun 28
BlackBerry (BBRY -26%) states on its FQ1 call BB10 phones made up 40% of the quarter's...
BlackBerry (BBRY -26%)
states on its FQ1 call BB10 phones made up 40% of the quarter's smartphone sales. That implies ~2.7M shipments, below a consensus of 3M+ (had risen in recent weeks). BlackBerry subs totaled 72M, -4M Q/Q. Total smartphone shipments +13% Q/Q and -13% Y/Y. 71% of revenue came from hardware, 26% from services, and 3% from software/other. That's a major shift from FQ4's 61%/36%/3%, and suggests service fee cuts and sub losses took a toll. They also affected gross margin, which fell 620 bps Q/Q to 33.9% after rising 970 bps in FQ4; it was still up 590 bps Y/Y. Opex -15% Y/Y to $1.21B thanks to last year's job cuts, but +11% Q/Q thanks to higher marketing spend. (PR) (previous: I, II)