Jun. 22, 2015, 5:30 PM
Mar. 27, 2015, 11:20 AM
- Initially down premarket in response to its mixed FQ4 results, BlackBerry (NASDAQ:BBRY) is now moving higher.
- Hardware (lower-margin) was 42% of revenue in FQ4 vs. 46% in FQ3; services was 47% vs. 46%, and software was 10% vs. an 8% FQ3 contribution for software/other. John Chen stated on the CC software revenue grew 24% Q/Q and 20% Y/Y - the company has previously forecast its software revenue will double in FY16 (ends Feb. '16), and its services revenue fall by 50%.
- Gross margin fell to 48.3% from FQ3's 51.7% and the year-ago period's 56.7%. Sales/marketing/admin spend fell 52% Y/Y to $172M, and R&D spend 46% to $134M.
- North American revenue -31% Y/Y to $205M; EMEA -31% to $283M; Latin America -53% to $60M; Asia-Pac -20% to $112M. End-user phone sales fell to 1.6M from FQ3's 1.9M and the year-ago period's 3.4M.
- BlackBerry's cash balance rose by $156M Q/Q to $3.27B, thanks partly to an $80M net gain on acquisitions/divestitures. Long-term debt stood at $1.7B. The company still expects to reach "sustainable non-GAAP profitability" at some point in FY16.
- Initial sell-side reactions are cautious. RBC (Sector Perform) notes services revenue fell 15% Q/Q, and thinks the drop "may continue to sustain lingering concerns about BlackBerry’s declining subscriber base.” Multiple analysts observe phone shipments (1.3M) missed estimates. Cowen (Market Perform): "The magnitude of the Hardware miss suggests smartphones may prove a less significant F2016 growth driver than expected."
- Prior BlackBerry earnings coverage
Mar. 27, 2015, 7:23 AM
- FQ4 operating income of $2M vs. a loss of $156M a year ago. EPS of $0.04 vs. a loss of $0.08. Normalized cash flow of $76M vs. a loss of $784M.
- Revenue of $660M vs. expectations for nearly $800M, with devices revenue of $277M vs. estimates for $444M, services revenue of $310M vs. $318M, software revenue of $66M vs. $68M.
- Revenue recognized on about 1.3M BlackBerry phones, with about 1.6M sold to end customers, with an ASP of $211 vs. $180 the previous quarter.
- BBRY is halted from premarket trade until 7:30 ET.
- Earnings call at 8 ET.
- Previously: BlackBerry beats by $0.09, misses on revenue (March 27)
Mar. 27, 2015, 7:01 AM
- BlackBerry (NASDAQ:BBRY): Q4 EPS of $0.04 beats by $0.09.
- Revenue of $660M (-32.4% Y/Y) misses by $126.42M.
- Shares +1.3% PM.
Mar. 26, 2015, 5:30 PM
Dec. 19, 2014, 2:43 PM
- Deja vu: Three months after gradually moving higher after posting an FQ2 revenue miss and EPS beat, BlackBerry (BBRY -1.4%) is doing the same after delivering a similar FQ3 performance.
- An improving gross margin contributed to the EPS beat: GM rose to 51.7% from 46.4% in FQ2. GM was at -106% a year ago (the result of a massive phone inventory charge).
- Cost cuts also helped: GAAP R&D spend fell 17% Q/Q and 48% Y/Y to $154M; SG&A spend fell 12% Q/Q and 68% Y/Y to $538M. BlackBerry "continues to target sustainable non-GAAP profitability some time in fiscal 2016." The FY16 (ends Feb. '16) EPS consensus is at -$0.20.
- Hardware was 46% of revenue, services 46%, and software/other 8% - the same as FQ2. End-user phone sales fell to 1.9M from 2.4M in FQ2 and 4.3M a year earlier. BlackBerry has said it needs to sell 10M phones annually to break even on hardware.
- Cowen (Market Perform) likes BlackBerry's margin improvement and BES license growth - ahead of the BES12 launch, BES10 licenses roughly doubled Q/Q to 6.8M, aided by the EZ Pass migration program (to be ended soon). "Software growth remains the critical driver of the long-term turnaround."
- S&P (Hold): "We are encouraged by a return to positive cash flow, reflecting margin improvement from cost cutting efforts. We see BBRY growing its mobile device management business ... We anticipate BBRY focusing on growing its software offerings and expect its hardware business to remain at depressed levels." MDM software rival MobileIron (MOBL +6.6%) is up strongly.
- FQ3 results, details
Dec. 19, 2014, 7:39 AM
- FQ3 non-GAAP EPS of $0.01 vs. a loss of $0.02 the previous quarter.
- Normalized positive cash flow of $43M vs. cash use of $36M previously.
- No details on how the Passport is faring, but hardware revenue was about $365M, down 12% Q/Q. The company recognized hardware revenue on about 2M units, suggesting an ASP of roughly $182, down 27% Y/Y. 1.9M phones were sold through to end customers.
- Conference call at 8 ET
- Previously: BlackBerry beats by $0.06, misses on revenue
- BBRY -4.7% premarket
Dec. 19, 2014, 7:02 AM
- BlackBerry (NASDAQ:BBRY): Q3 EPS of $0.01 beats by $0.06.
- Revenue of $793M (-33.4% Y/Y) misses by $138.53M.
Dec. 18, 2014, 5:30 PM
Nov. 14, 2014, 9:40 AM
- During an investor day (transcript) held yesterday afternoon following its enterprise announcements, BlackBerry (BBRY -0.2%) guided for FY16 (ends Feb. '16) services revenue of $800M, down 50% from an expected FY15 level of $1.6B. The company's total FY16 revenue consensus is currently at $3.78B (nearly flat Y/Y),
- As it is, services revenue has been dropping due to consumer fee cuts, hardware installed based declines, and enterprise promotions. Services was 46% of August quarter revenue, down from 54% a year earlier; BlackBerry's total revenue fell 42% during this time.
- BlackBerry is counting on hardware stabilization and software growth to help offset the services decline; software revenue is expected to double in FY16 to $500M. Long-term, it hopes newer enterprise services (such as those announced yesterday) and Project Ion will boost services revenue.
- Raymond James' Steven Li (Market Perform) notes the FY16 services guidance was below the firm's estimate of $1.14B, and "reduces the margin for error on BBRY’s target of doubling software revenues next year to offset the [services] decline and maintain cash flow breakeven." He also thinks an FQ3 revenue consensus of $965M remains too high; RJ forecasts $899M.
- On the other hand, Li declares the Samsung deal bolsters BES12's credibility as a cross-platform enterprise mobility management (EMM) solution. He's also pleased with John Chen's disclosure than a Fortune 10 client plans to use BES12 to manage non-BlackBerry devices; "almost all" of BlackBerry's initial 100+ BES12 deployments are believed to be for managing BlackBerrys.
- Shares are near breakeven in early trading. They rose 7% yesterday.
- Update (2:35PM ET): Shares are now down 6.4%.
Sep. 26, 2014, 10:18 AM
- Down initially following its mixed FQ2 results, BlackBerry (NASDAQ:BBRY) has quickly reversed course.
- Possibly helping: John Chen has forecast BlackBerry's software revenue (aided by the upcoming BES 12 launch, and perhaps also QNX and Secusmart), will double in FY16 from an expected FY15 level of $250M. Software/other sales were 8% of revenue in FQ2.
- Chen also states BlackBerry has sold 200K Passport phones since the device's Wednesday launch. End-user phone sales were an estimated 2.4M during FQ2.
- RBC's Mark Sue (Market Perform) notes services revenue (-19% Q/Q to $421M) was below his $453M estimate, and thinks the number is "likely to sustain concerns about BlackBerry’s declining subscriber base." However, phone shipments of 2.1M were above RBC's 1.65M forecast.
- Cowen's Tim Arcuri (Market Perform) calls BlackBerry's 47.5% gross margin "solid," At the same time, he argues "investor concerns are increasingly likely to key on how/when new technology and growth initiatives can/will arrest the Service decline and deliver a revenue inflection beyond Hardware."
- FQ2 results, details.
Sep. 26, 2014, 9:30 AM
- BlackBerry's (NASDAQ:BBRY) R&D spend fell 22% Q/Q and 48% Y/Y to $186M in FQ2, and its sales, marketing, and admin spend fell 51% Q/Q and 63% Y/Y to $195M. That helped EPS beat estimates in spite of a revenue miss.
- Also helping: Though BlackBerry's revenue fell by $50M Q/Q and its mix shifted towards hardware (lower-margin) relative to services, adjusted gross margin only fell by 50 bps to 47.5%. Hardware GM was positive.
- Hardware was 46% of revenue, services 46%, and software/other 8%. That compares with a 39%/54%/7% split in FQ1.
- Revenue was recognized on 2.1M phone shipments (up from FQ1's 1.6M), and an estimated 2.4M phones were sold to end-users (down from FQ1's 2.6M). Shipments were at 3.7M a year ago, and end-user sales 5.9M.
- North American revenue -28% Y/Y to $297M; EMEA -44% to $368M; Latin America -43% to $111M; Asia-Pac -49% to $140M.
- BBM users rose by 6M Q/Q to 91M. They were at ~60M before Android/iOS apps arrived last year.
- BlackBerry still expects to achieve breakeven cash flow by the end of FY15 (ends Feb. '15).
- FQ2 results, PR
Sep. 26, 2014, 7:01 AM
- BlackBerry (NASDAQ:BBRY): Q2 EPS of -$0.02 beats by $0.14.
- Revenue of $916M (-41.7% Y/Y) misses by $33.64M.
Sep. 25, 2014, 5:30 PM
Jun. 19, 2014, 2:15 PM
- "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
BlackBerry Ltd. develops hardware and software solutions for mobile communications. It provides platforms and solutions, which support multiple wireless network standards through the development of integrated hardware and software services. The company's solutions provide access to information,... More
Industry: Diversified Communication Services
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