Seeking Alpha

BlackBerry tops $9 as Street cheers EPS/cash flow improvement

  • "The short trade is over in this name for now - for now," says BGC's Colin Gillis after taking stock of BlackBerry's (BBRY +11.2%) FQ1 numbers. "They've got enough liquidity, (and) they've given us clear profitability targets."
  • Cowen's Timothy Arcuri likes the bottom-line improvement, as well as BlackBerry's gross margin expansion and better-than-expected services numbers. "We still see BES 12 transition as the key to sustained LT growth, but current momentum will certainly resonate with investors."
  • Services revenue, affected by BB10-related consumer price cuts, fell to 54% of revenue in FQ1 from 56% in FQ4. Hardware rose to 39% from 37%, and software/other was steady at 7%.
  • On the CC, John Chen mentioned early sales of BlackBerry's $200 Z3 phone (5", touch-only, launched in Indonesia) have been strong, and that inventory has run low at times. FQ1 end-user phone purchases of 2.6M were down from FQ4's 3.4M and FQ3's 4.3M.
  • Job cuts at work: SG&A spend fell 41% Y/Y to $400M, and R&D spend 34% to $237M. 19% of the float was shorted as of May 30.
  • Earlier: FQ1 results, details
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Comments (6)
  • LYogi
    , contributor
    Comments (2575) | Send Message
     
    "The Short Trade is Over"

     

    now 93 Million Shares have to be bought and returned to their owners....:))
    19 Jun 2014, 02:23 PM Reply Like
  • andypochta1
    , contributor
    Comments (1226) | Send Message
     
    And the best part is that these shares must be bought from the owners to be returned to the owners :)
    I may part with very few shares for $15. Well make it $17..
    19 Jun 2014, 02:48 PM Reply Like
  • ELLAS
    , contributor
    Comments (2567) | Send Message
     
    Let's hope the shorts get squeezed as much as possible for a change.
    And there, people predicted a negative Quarter, and we end up with anything but negative.

     

    Good Job John Chen, ;)
    19 Jun 2014, 02:35 PM Reply Like
  • customize
    , contributor
    Comments (147) | Send Message
     
    I think blackberry has fought back valiantly for what they'll been up against.
    19 Jun 2014, 02:36 PM Reply Like
  • gstanden
    , contributor
    Comments (510) | Send Message
     
    This company is a big winner. Slimmed down, nimble, best-in-industry engineering team, only true multitasking smartphone platform on microkernel, near-monopoly on in-car informatics. One can say all one wants about the narrow margins of QNX, but when you consider the number of car makes that depend on QNX embedded systems:

     

    Ford
    Lexus
    Chevrolet
    Mercedes
    Saab
    Mini Cooper
    Toyota
    Nissan
    Cadillac
    Jaguar
    Bentley
    Honda
    Mitsubishi
    Acura
    Harley-Davidson
    BMW
    Subaru
    Chrysler
    Jeep
    Audi
    VW
    Landrover

     

    just to name a few, you might realize, as I have, that Blackberry has a near-monopoly on in-car informatics, and for good reason.

     

    Blackberry QNX is the right company, in the right place, at the right time with the right leader just as built-in in-car 4G LTE is about to take off as the next big market for mobile communications.
    19 Jun 2014, 02:51 PM Reply Like
  • 6372381
    , contributor
    Comments (172) | Send Message
     
    Come on Simona Jankwoski give us at least $13. Upgrade it now Goldman.
    19 Jun 2014, 05:02 PM Reply Like
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