Fri, Sep. 30, 5:21 PM
- BlackBerry's (BBRY +0.5%) move away from hardware development toward software/services is a key strategic shift that could bring focus but also some key uncertainties, Imperial Capital says as it bumps its price target.
- The firm maintained an In-Line rating and raised its price target to $8.50 from $7 -- implying just 6.4% upside, but they say the shares have balanced risk/reward and "we would seek a more attractive entry point."
- “BBRY’s decision to cease internal hardware development and outsource to partners represents a key strategic shift which will transition the company into a focused software and services vendor with improved margin and cash flow profile,” analyst Michael Kim says, but he notes considerable uncertainty around licensing deals as well as end-user demand for new devices, and steady-state royalty rates.
Wed, Sep. 28, 7:00 PM
- BlackBerry (BBRY +5.7%) surged to its highest point since the beginning of the year today, as it moved to outsource its internal hardware development after losses piled up.
- The move out of hardware (to focus on software/services) would mean fewer than 100 job cuts, CEO John Chen said today; that takes into account that reductions have already been made. And he said he hadn't decided whether to put out the phone that the company has already produced.
- "If I decide not to go ahead with that phone, you may have seen the last BlackBerry-designed phone," Chen said.
- Meanwhile, The Wall Street Journal this evening has written an elegy to BlackBerry's devices, once essential but then left in the dust by faster-moving competitors. After a peak of 52.3M handsets sold in 2011, BlackBerry had just 3.2M device sales in the most recent fiscal year.
- The company underestimated the shift on mobile devices, the WSJ says: "When [founder Mike] Lazaridis conducted an autopsy on Apple Inc.’s first iPhone in the summer of 2007 he was stunned to find so much computing power inside the sleek phone. The phone was nonsensical, he told his team. There was no way the networks could manage the videos, photos and other internet traffic Apple was promising iPhone users." But Apple's exclusive deal with AT&T gave the carrier a huge incentive to upgrade networks.
Wed, Sep. 28, 7:26 AM
- Non-GAAP revenue of $352M missed hopes for $394M. Hardware revenue of $105M vs. $153M expected; software and services revenue of $154M vs. $167M expected.
- Non-GAAP operating income of $16M or $0.00 per share beat by a nickel.
- The company announces its first major device software licensing agreement with a telecom JV in Indonesia.
- End of an era: All internal hardware development will be outsourced.
- Full fiscal year non-GAAP EPS guidance is boosted to breakeven to a nickel loss vs. current consensus of a $0.15 loss.
- CC at 8 ET.
- Previously: BlackBerry beats by $0.05, misses on revenue (Sept. 28)
- BBRY +6% premarket
Wed, Sep. 28, 7:07 AM| Wed, Sep. 28, 7:07 AM | 5 Comments
Wed, Sep. 28, 7:04 AM
Tue, Sep. 27, 5:30 PM
Mon, Sep. 26, 3:46 PM
- BlackBerry (BBRY -1%) is about two-thirds of the way through its turnaround, says CEO John Chen, speaking just a couple of days ahead of the company's Q2 results.
- "We have made investment over a billion-plus, all in software, all in security, and now we need to execute it," he says.
- But he didn't provide any update on the possible fate of the money-losing hardware unit. A midday stock halt last month led observers to believe a hardware shutdown announcement was coming -- but no only did that not happen (the company announced a debenture-based refinancing), but since then a page leak suggested the company was preparing yet another new handset, a more powerful Android-based phone.
Tue, Sep. 20, 5:42 PM
- The next phone from BlackBerry (BBRY +2.7%) looks to be much more robust than the company's second Android-based entry, released in July -- at least according to a now-deleted page on the company's website.
- The DTEK60, which the site CrackBerry found on a page that had "donotpublish" in its URL, could be the rumored "Argon" phone and a follow-up to the DTEK50 it put out this summer.
- But it contains higher-powered specs than that phone, with a Qualcomm Snapdragon 820 64-bit quad-core processor, a 5.5" screen with 2560 x 1440 Quad HD resolution, a 21-megapixel camera and 3,000 mAh battery, as well as a fingerprint sensor.
- If released as described, the all-touch phone would leave another rumored model that brings back a physical keyboard for future days.
- BBRY shares are up 6.6% since July 26.
Wed, Sep. 7, 4:17 PM
- BlackBerry (NASDAQ:BBRY) has completed a debt restructuring, news for which the stock underwent a well-publicized halt two weeks ago.
- The company wrapped up the redemption of its 6% unsecured convertible debentures, none of which were converted into common shares before redemption.
- It also finished a private placement of $605M in 3.75% unsecured convertible debentures to Fairfax Financial and other institutional investors.
- Since it announced the restructuring Aug. 26, BBRY shares are down 3.8%. The stock is down 17.2% YTD.
Mon, Aug. 29, 3:33 PM
- BlackBerry's (BBRY -0.8%) refinancing moves Friday -- redeeming 6% convertible debentures and issuing new 3.75% debentures -- is a positive for the firm, says JPMorgan.
- Analyst Rod Hall has raised his price target on BlackBerry to $8 from $7, implying a 1.1% upside from today's lowered price. He's Neutral on the stock.
- The company planned to redeem its outstanding principal in the 6% debentures, about $1.245B, and a set of subscriber including Fairfax Financial are in on $605M of the newer $10/share convertibles.
- That should save BlackBerry close to $50M/year in interest, says Hall, and so he's bumped estimates for fiscal 2017 EPS by $0.05, to -$0.14. For the following year, he's raised his EPS estimate by $0.09, to -$0.36. "We see this as a good transaction for BlackBerry as the one-time additional payment effectively allows for the significant reduction of annual interest expenses," Hall says.
Fri, Aug. 26, 2:01 PM
- BlackBerry (NASDAQ:BBRY) says it's redeeming existing convertible debentures and issuing new ones in a refinancing.
- It's amended the indenture governing 6% unsecured convertible debentures to allow a redemption before Nov. 13; it plans to redeem the outstanding principal (about $1.245B) at 106.7213% of principal.
- Holders of those debentures are still entitle to convert into shares at $10/share anytime prior to Sept. 1.
- Also, Fairfax Financial (OTCPK:FRFHF) and others will subscribe for 3.75% unsecured convertible debentures for $605M in aggregate. Those debentures will also be convertible at $10/share and that transaction should wrap on Sept. 2.
- If the entire $605M were converted, the shares issued would make up 11.57% of outstanding common shares. They're not redeemable prior to maturity and aren't due until Nov. 13, 2020.
- Shares were halted just a bit ago, raising investor chatter about what that could mean on a Friday afternoon if not abandoning an unprofitable hardware business.
- Shares will resume trading at 2:30 p.m. ET.
- Updated 2:47 p.m.: After resuming trading, shares are down 0.1% on the day.
Fri, Aug. 26, 1:44 PM
- BlackBerry (BBRY -0.8%) shares have been halted for news pending.
- The stock was up as much as 1.4% this morning before heading into the red at midday.
- Developing story ...
Wed, Aug. 24, 10:42 AM
- BlackBerry (NASDAQ:BBRY) has prevailed again in a shareholder lawsuit that charged it with fraudulently inflating its stock price.
- A circuit court of appeals in New York upheld the dismissal of the suit, which said the company presented a misleadingly positive roadmap for its BlackBerry 10 line of smartphones, and thus improperly boosted the stock.
- While the appeals court threw out the claim as written, it did order a lower-court judge to consider whether plaintiffs could amend their claim based on new evidence.
Fri, Aug. 12, 11:00 AM
- BlackBerry (NASDAQ:BBRY) is up 2.5% and touching its highest point since early March following Raymond James' upgrade of the shares.
- The firm lifted its rating to Outperform from Market Perform, and boosted its price target from $8 to $10.50, implying 33% upside from yesterday's close.
- BlackBerry launched its second Android-powered smartphone two weeks ago, the DTEK50, with a sales pitch for security-minded buyers.
- It's "only positives from here on," says analyst Steven Li, noting the company's low risk in neither designing nor making the phone itself -- but upside if the phone proves there's a market for secured Android, which could be licensed to other makers.
- He thinks BlackBerry Software could grow 15% organically. “There are also a couple of near-term catalysts to boot: Radar (asset tracking, GA later this month) and converts buy back (saves $75M in interest cost).”
Tue, Jul. 26, 11:52 AM
- BlackBerry (BBRY +0.7%) has rolled out its second Android-powered smartphone, now at a lower price point, as it hangs on to the handset business with a smaller footprint.
- Following up on its Android market entry in the Priv, the new DTEK50 retails for $299 with a touch keyboard and 5.2-inch screen and runs on Android Marshmallow (6.0).
- The company is aiming the phone at security-minded consumers (with user-info encryption and malware protection) and positioning it as enterprise-ready.
- After news that BlackBerry was ending production of its Classic line, it's taken pains to say it's not abandoning the BB10 operating system and will update it next year after delivering 10.3.3 this month.
Tue, Jul. 19, 5:24 PM
- Just a few weeks after the U.S. Senate decided to stop handing out BlackBerry (BBRY -0.9%) smartphones, the body has inked a new deal with the company on the software side.
- BlackBerry says it has a "multimillion-dollar" deal with the Senate's chief security service, the Sergeant at Arms office, to power its emergency mass notification system.
- With the decline of its venerable device line, the company has been at work reinventing itself as a mobile security software provider.
- After hours: BBRY +0.5%.