Jul. 24, 2014, 12:33 PM
- BlackBerry (BBRY +4.2%) is talking with other tech companies about partnerships in the wake of the Apple-IBM deal, John Chen tells the FT. "I am working on some, and maybe we will collaborate with others. If I focus on security and identity management then we will be a good solid partner."
- Chen compared the Apple/IBM tie-up to two elephants dancing, and promised BlackBerry would be more nimble. He also talks up BlackBerry's long-term enterprise strategy. "What we are doing is focusing on security and privacy, which is where all the things are connected. Every IT device – no matter what operating system – we want to talk to and connect securely."
- BlackBerry tumbled after the Apple/IBM deal was announced, as a slew of analysts argued the alliance is a negative for BlackBerry's MDM and/or enterprise hardware efforts.
Jul. 16, 2014, 2:50 PM
- "Even if Apple-IBM's security 'mousetrap' isn't as good as ones offered by BlackBerry (BBRY -11%) and others, these MDM vendors will have to overcome the extremely high hurdle of displacing IBM's mobile device software preloaded on iPhones and iPads," writes Morningstar's Brian Colello, taking a critical view of the Apple/IBM deal's impact on BlackBery and MobileIron (MOBL -6.9%).
- IDC's John Jackson: "It is not a crushing blow at this early stage, but it is a negative for BlackBerry." UBS' Amitabh Passi asserts the deal highlights the intense competitive environment for MDM solutions, one that also features VMware, Citrix, and several other firms. Baird suggests the tie-up could also hurt BlackBerry's hardware sales by making iOS "the preferred platform in the enterprise."
- SA author Quoth the Raven defended BlackBerry this morning, arguing the deal makes the company a more compelling buyout target. BlackBerry, for its part, has responded by stating the deal "underscores the need" for solutions such as the kind "BlackBerry has delivered for years."
- More Apple/IBM commentary
Jul. 16, 2014, 12:37 PM
Jul. 15, 2014, 5:35 PM
Jul. 15, 2014, 4:50 PM
- As part of a comprehensive enterprise mobility partnership, Apple (NASDAQ:AAPL) and IBM plan to develop 100+ "industry-specific enterprise solutions," including new iPhone/iPad apps.
- The apps will begin to arrive this fall, and IBM will resell iPhones/iPads containing them to clients worldwide.
- The companies also plan to develop IBM cloud services optimized for iOS. Targeted markets include security, mobile device management (MDM), and big data/analytics. New enterprise-focused AppleCare services will be offered, as will "new packaged offerings from IBM for device activation, supply and management."
- Apple, which maintains an outsized share of enterprise mobile hardware activations, has tried hard to grow its business footprint during the Tim Cook era. Aside from any value provided by the new apps/services, Big Blue's credibility and relationships with Global 2000 firms should provide a shot in the arm for Apple's efforts.
- As for IBM, the deal adds to a mobile software/services push that has already resulted in a string of acquisitions and product launches.
- AAPL +1.4% AH. IBM +2%. BlackBerry (NASDAQ:BBRY) -3.2%, as investors worry about the MDM portion of the alliance. MobileIron (NASDAQ:MOBL) could also be affected by it.
- Update: Tim Cook, discussing the deal with re/code: "We’re good at building a simple experience and in building devices ... The kind of deep industry expertise you would need to really transform the enterprise isn’t in our DNA. But it is in IBM’s."
Jul. 7, 2014, 2:35 PM
- BlackBerry (BBRY +6.4%) is at levels last seen prior to its giant Sep. 2013 warning. With 1/5 of the float shorted as of June 13, short-covering is undoubtedly a factor.
- Also possibly helping: A report from the Economic Times stating BlackBerrry plans to launch a healthcare service that will rely on data from thousands of medical devices to "enable early detection of illnesses." A BlackBerry exec says the company is "running trials with multiple hospitals in India."
- The service is being launched in partnership with NantHealth, developer of a clinical software platform used by ~250 hospitals and connected to 16K+ medical devices. BlackBerry disclosed a stake in NantHealth in April, along with plans to offer a healthcare-optimized smartphone (among other things).
- Citron Research recently talked up BlackBerry's efforts to provide an OS (QNX) and analytics infrastructure (Project Ion) for companies looking to obtain insights from the data produced by embedded devices.
Jun. 30, 2014, 1:43 PM
- Leaked pictures of BlackBerry's (BBRY +4.8%) anticipated Passport phone show a rectangular device with an abbreviated QWERTY keyboard.
- The enterprise-focused device reportedly features a 4.5", 1440x1440, display (1:1 aspect ratio), 32GB of storage, 3GB of RAM, and a hefty 3450mAh battery.
- John Chen recently announced the Passport would launch in September. The leaks come two weeks after BlackBerry announced (in a strategy shift) Amazon's Appstore for Android would be integrated with BlackBerry 10.3 (due this fall), and that it'll work with BlackBerry developers to migrate their apps to the Appstore.
Jun. 20, 2014, 11:21 AM
- Citron Research, which set a $15 target for BlackBerry (BBRY +4.3%) in January, has hiked its PT to $20.
- In a new report (.pdf), Citron gushes (somewhat ironically, given its reputation for throwing cold water on hyped tech trends) over BlackBerry's potential to provide software and services to help enable the proverbial Internet of Things (IoT).
- Citron notes BlackBerry's Project Ion aims to provide an analytics infrastructure for businesses trying to leverage the data produced by millions of embedded devices, and that its QNX OS already makes it a player in the embedded market. It also sees BlackBerry's security reputation helping its cause.
- The firm calls John Chen "one of the strongest and most credible leaders on Wall Street," and thinks a tech giant could be interested in making a bid.
- Shares now +14% since yesterday's FQ1 beat.
- Yesterday's coverage
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
Jun. 19, 2014, 9:11 AM
Jun. 19, 2014, 7:30 AM
- FQ1 revenue of $966M slipped 1% from the previous quarter. Breakdown: 39% hardware, 54% services, 7% software and other. Hardware revenue recognized on about 1.6M smartphones, up from 1.3M the previous quarter.
- About 2.6M phones sold to end customers during Q.
- Adjusted gross margin of 48% gains 500 basis points from FQ4.
- Cash on hand rises to $3.1B from $2.7B, boosted by a tax refund and sale of real estate. Excluding those, company burned through $255M in FQ1, down from $784M previously. Management expects break-even cash flow by the end of fiscal 2015.
- Previously: BlackBerry beats by $0.15, beats on revenue
- BBRY +9.8% premarket
- CC begins at 8 ET.
Jun. 18, 2014, 8:11 AM
- Amazon (AMZN) Appstore will be available with the launch of the BlackBerry (BBRY) 10.3 operating system this fall.
- BlackBerry has about 130K apps, but is missing key ones like Pinterest, Netflix, and Groupon, all of which Amazon - with roughly 240K apps - has access to.
- "I do not have to spend time, energy and money" developing apps Amazon offers, says CEO John Chen. "Given I want to financially turn around the company and focus on the enterprise space, this is perfect for us."
- BBRY +3.5% premarket
May 28, 2014, 5:37 PM
Mar. 31, 2014, 10:14 AM
- While Needham has upgraded BlackBerry (BBRY -4.3%) to Hold, Credit Suisse and Evercore have respectively downgraded to Underperform and Underweight. Shares are now down 11% since Friday morning's FQ4 report, as top-line concerns take precedence over a big EPS beat.
- CS is worried about free cash flow weakness and slumping services revenue. Needham, meanwhile, declares John Chen has "brought adult supervision to the company," and is optimistic about installed base upgrades following the launch of the company's Q20/Classic QWERTY phone this year.
- Canaccord (Hold) has upped its PT to $8 from $6. It's concerned about limited near-term sales visibility, but also expects "gradually improving trends following the BES12 launch in November."
- Goldman (Neutral) has cut its PT to $8.80 from $9.50. It views Chen's goal of achieving breakeven cash flow by the end of FY15 achievable, but is "more skeptical on BlackBerry's ability to return to profitability in FY16."
Mar. 28, 2014, 2:05 PM
- Initially up sharply following after posting a big FQ4 EPS beat to go with an (also large) revenue miss, BlackBerry (BBRY -2.2%) has reversed course.
- Analysts are worried the cost cuts that drove the EPS beat - R&D/SG&A spend fell 34% Y/Y to $601M - will only do so much. "John Chen did what John Chen is known for. He came in and he's cut the cost base," says BGC's Colin Gillis.
- On the CC, Chen said BlackBerry plans to re-launch BB7-based Bold phones that have seen strong demand. He also stated three new high-end QWERTY BlackBerrys would likely arrive in the next 18 months. "I hope nobody thinks we don’t take seriously the handset business."
- Sales of the high-end/QWERTY Q10 fell flat last year, as the iPhone and Samsung's Galaxy line continued dominating the high-end. BlackBerry recently unveiled the Q20, a new QWERTY flagship.
- Chen also reiterated BlackBerry aims to be profitable in FY16 (ends Feb. '16), and said the company will "take a very serious look" at bringing BBM to PCs. BBM's active user base has surged past 85M since Android/iOS apps launched last fall.
- 3.4M BlackBerrys were sold to end-users in FQ4, down from 4.3M in FQ3 and 5.9M in FQ2. Due to inventory-clearing, BlackBerry only recognized revenue on 1.3M shipments.
- Previous: BlackBerry's results, details
Mar. 28, 2014, 7:35 AM
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
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