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BlackBerry Q4: One Million Phone Order Could Impact Earnings Report On Thursday

|Includes:BlackBerry Ltd. (BBRY), VZ

Disclaimer: I have decided to put this out in a blog, as the contents of this article are very speculative. Use this information at your own risk! These views are only my thoughts and opinions.

Recently, it was reported that the mystery customer of the one million BlackBerry (NASDAQ:BBRY) Z10 order was Brightstar (a wireless distribution and services company). News of this transaction was released on March 13, 2013.

One thing that I noticed with the reports coming out about Brightstar, is the assumption that the one million phone order is entirely for Verizon (NYSE:VZ). In looking into Brightstar, it has occurred to me that this is potentially false.

Brightstar is a global player in wireless distribution. Verizon is only one of 200+ customers for Brightstar. If Verizon is not the only customer of Brightstar, then who else could be part of the one million phone order? Is there a potential for this sale to hit the Q4 earnings report this Thursday?

To do this, I have compiled the following two lists:

Countries with Q4 Z10 Sales (prior to March 2nd):

Countries with Q4 sales served by Brightstar:

  • United Kingdom
  • Canada
  • United Arab Emirates
  • South Africa
  • Nigeria
  • Germany
  • Spain
  • Netherlands

As you can see, the two lists are very similar. Eight of the eleven countries that had Z10 sales in Q4 are served by Brightstar.

So, the question must be raised... was this one million phone order BEFORE March 2nd? We were told about this transaction on March 13th. We were also not originally told who the order was for. Due to the secretive nature of the original reports, it would not surprise me if this one million phone order was on the Q4 earnings report this Thursday. If BlackBerry shipped these units by March 2nd, then generally accepted accounting principles (GAAP) would allow them to report the full one million as revenue in Q4.

This again is purely speculative. I wanted to bring this up, as not one report has mentioned that this order could be for more than just Verizon business. For the full order of one million phones to be on Q4, all would had to have been shipped before March 2nd. We would have to also assume that when we heard about this transaction (March 13th), that it was given to us very late.

Please feel free to point out any errors or omissions I may have made. The information in this article was based on what I could piece together from various news sources.

There are a lot of assumptions to be made for a case like this. Then again, this is what speculating is all about. This also makes it a lot of fun. No matter what your position is in BlackBerry, good fortune to you on Thursday!

Disclosure: I am long BBRY.

Additional disclosure: Information provided is my opinion. Use this information at your own risk.

Stocks: BBRY, VZ