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BlackBerry Ltd. (BBRY)

  • Mar. 28, 2014, 12:05 AM
  • Mar. 27, 2014, 5:30 PM
  • Dec. 20, 2013, 2:03 PM
    • With a lot of bad news priced in, BlackBerry (BBRY +13.6%) has shot higher following its FQ3 report, as investors applaud a Foxconn deal that (for now) will limit BlackBerry's in-house phone design work to a limited number of high-end enterprise devices. Talking to CNBC (video), John Chen asserts the deal will help BlackBerry become profitable by FY16 (ends Feb. '16).
    • Chen: "The number one thing I noticed (as CEO) was that our handset volume was dropping and with that, our [fixed] cost was too high ... [Foxconn] has the ability to bring the cost down ... The focus of the overall company is shifting toward enterprise, government customers and software services."
    • With BlackBerry expected to lose $1.37/share in FY14 and $1.10/share in FY15,  a return to profitability in FY16 would represent a major turnaround.
    • Also: On the CC (transcript), Chen stated BlackBerry is aiming to become "cash flow neutral from operations" in FY15, and expects "reasonably good revenue" from BBM around the FY16 timeframe.
    • Short-covering is likely contributing to today's gains: 33% of the float was shorted as of Nov. 29.
    • More on BlackBerry
  • Dec. 20, 2013, 10:05 AM
    • With hardware sales continuing to fall, BlackBerry's (BBRY +2.2%) FQ3 hardware/services/software revenue mix was 40%/53%/7%. That compares with 49%/46%/5% in FQ2, and 61%/36%/3% in FQ1.
    • Estimated phone sell-through of 4.3M units was below estimated FQ2 sell-through of 5.9M, and reported FQ1 sell-in of 6.8M.
    • EMEA now makes up 46% of revenue; sales to the region fell 47% Y/Y. North American sales (28.5% of total) also -47%, Latin America (11.3% of total) -75%, Asia-Pac (14.2% of total) -56%.
    • With BlackBerry's massive job cuts in full swing, R&D spend fell 18% Y/Y to $322M. However, SG&A spend rose 11% to $543M; declines are likely in future quarters.
    • More on BlackBerry
  • Dec. 20, 2013, 9:46 AM
    • Chairman/interim CEO John Chen states on BlackBerry's (BBRY -2.4%) FQ3 CC new OEM partner Foxconn, initially focused on low-end/emerging markets phones, will handle most of BlackBerry's phone design work going forward, and that BlackBerry will only design a limited number of high-end, enterprise-focused phones itself.
    • Chen, who has already suggested BlackBerry will be an enterprise-focused company going forward, says he does hope BlackBerry would be able to design its own high-end consumer phones in the future, but thinks the company needs to focus its resources on enterprise software for now.
    • One bright spot: BlackBerry says it has added 40M+ registered Android/iOS BBM users since making BBM apps available on the platforms in October. For reference, BlackBerry claimed to have ~60M BBM users on its own devices earlier this year. BlackBerry has promised to eventually monetize Android/iOS users via ads; new value-added services are also a future possibility.
    • The first BlackBerry/Foxconn phone will be a 3G BB10 device likely to arrive in March or April. BlackBerry still has a sizable emerging markets base, but is also facing very tough competition from low-end Android phones, including sub-$100 products from white-label OEMs.
    • FQ3 results, details/Foxconn deal, PR
  • Dec. 20, 2013, 7:40 AM
    • Reopened for trade following FQ3 results, BlackBerry (BBRY) is off 6.2% in early action.
  • Dec. 20, 2013, 7:23 AM
    • Revenue of $1.2B in FQ3 is off 24% Q/Q, off 56% from a year ago. About 4.3M smartphones were sold to end customers, about 3.2M of those were BlackBerry 7 devices. Company takes $4.6B in non-cash, pre-tax charges amid inventory write-downs and restructuring.
    • Cash and cash equivalents rise to $3.2B as of the end of November from $2.6B one quarter earlier.
    • Company enters a 5-year strategic partnership with Foxconn to go after emerging markets - the initial target (early 2014) will be a smartphone for Indonesia and other fast-growing markets.
    • CC at 8 ET
    • BBRY halted until 7:30 ET.
    • FQ3 results, press release
  • Dec. 20, 2013, 7:03 AM
    • BlackBerry (BBRY): Q3 EPS of -$0.67 misses by $0.24.
    • Revenue of $1.2B misses by $0.38B. (PR)
  • Dec. 20, 2013, 12:05 AM
  • Dec. 19, 2013, 5:30 PM
  • Oct. 2, 2013, 3:53 AM
    • BlackBerry (BBRY) expects to take at least $400M in charges until the end of the year as part of a restructuring in which it's slashing 40% of its workforce, the company said late yesterday. The figure is up from an initial estimate of $100M.
    • BlackBerry said that Fairfax's offer to take it private may have hurt demand for its products, with the take-up of BES, a new business-focused offering, "slower than anticipated." BlackBerry is also feeling the effects of a lack of apps.
    • The company is even beginning to suffer in emerging markets, which had been its one remaining bright spot. (SEC) (FQ2 earnings)
  • Sep. 27, 2013, 1:51 PM
    • With much of the bad news found in BlackBerry's (BBRY +1.5%) FQ2 report telegraphed a week ago (I, II), shares have ticked higher. However, they remain 11% below Fairfax's $9/share offer price.
    • BlackBerry wound up taking a $934M inventory charge, largely related to the Z10 (set to be repositioned as a mid-range device), and a $72M charge related to its restructuring program. The company's pending job cuts guarantee larger restructuring charges are on the way.
    • The company's FQ2 hardware/services/software revenue breakdown was 49%/46%/5%, a major change from FQ1's 61%/36%/3%. EMEA revneue -37% Y/Y and 44% of total; North America -52% and 26% of total; Asia-Pac -28% and 18% of total; Latin America -62% and 13% of total.
    • Going into the job cuts, opex -4% Y/Y vs. rev. growth of -45%.
    • As previously disclosed, there was no CC. More financial details will provided in filings next week.
    • Wells Fargo is worried about BlackBerry's cash burn ($500M in FQ2), and thinks the company should sell assets such as its valuable real estate to raise cash.
  • Sep. 27, 2013, 7:05 AM
    • BlackBerry (BBRY): Q2 EPS of -$0.47 in-line.
    • Revenue of $1.6B misses by $0.33B, but matches revised guidance. Shares -1.3% premarket. (PR)
  • Sep. 27, 2013, 12:05 AM
  • Sep. 26, 2013, 5:30 PM
  • Sep. 26, 2013, 4:03 PM
    • Jabil (JBL -10%) ended up adding to the AH losses it saw yesterday in response to the below-consensus FQ1 guidance provided with its FQ4 beat. Contract manufacturing peers Sanmina (SANM -2.3%), Flextronics (FLEX -1.3%), Multi-Fineline (MFLX -1.9%), and TTM Technologies (TTMI -1.6%) fell moderately.
    • Contributing to Jabil's losses: the company disclosed on its FQ4 CC it's "faced with a strong possibility of disengaging with BlackBerry (BBRY -0.8%)" on account of the company's struggles.
    • BlackBerry accounted for 12% of Jabil's FY13 revenue. Thanks to an estimated $0.28-$0.34/share hit from an expected BlackBerry wind-down, Jabil has set an FY14 EPS guidance range of $2.36-$2.60, soundly below a $2.85 consensus.
    • Apple accounted for 19% of Jabil's FY13 revenue, and could make up over 20% of FY14 sales thanks to the expected BlackBerry drop.
    • Previous: BlackBerry's FQ2 warning, Jabil falls in response
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Company Description
BlackBerry Ltd is a designer, manufacturer and marketer of wireless solutions for the mobile communications market.