BlackBerry's (BBRY -1.1%) FQ4 gross margin improvement is sustainable, argues Morgan Stanley's...

|About: BlackBerry Ltd. (BBRY)|By:, SA News Editor

BlackBerry's (BBRY -1.1%) FQ4 gross margin improvement is sustainable, argues Morgan Stanley's Ehud Gelblum after reviewing the company's 40-F. Gelblum, who upgraded BlackBerry ahead of its FQ4 report, notes 460 bps of the FQ4 improvement came from lower license amortization, which he thinks is the result of more favorable deals with suppliers. Meanwhile, the fact the 40-F indicates license amortization will average $300M/quarter in FY14 (up from $202M in FQ4) leads Gelblum to think BlackBerry expects its unit shipments to average 10M/quarter, up from FQ4's 6M.