Entering text into the input field will update the search result below

BlackBerry: The Same Old Song

Mar. 31, 2022 10:54 PM ETBlackBerry Limited (BB), BB:CA240 Comments
Bill Maurer profile picture
Bill Maurer


  • Fiscal Q4 revenues miss while non-GAAP EPS beat.
  • Guidance for year a major disappointment.
  • Management just doesn't seem on track.

Downward graph drown on black board

takasuu/iStock via Getty Images

After the bell on Thursday, we received fiscal Q4 results from BlackBerry (NYSE:BB). The company has been undergoing a major turnaround under CEO John Chen for nearly a decade now, and investors have not been rewarded. This week's report was

This article was written by

Bill Maurer profile picture
I am a market enthusiast and part-time trader. I started writing for Seeking Alpha in 2011, and it has been a tremendous opportunity and learning experience. I have been interested in the markets since elementary school, and hope to pursue a career in the investment management industry. I have been active in the markets for several years, and am primarily focused on long/short equities. I hold a Bachelor of Science Degree from Lehigh University, where I double majored in Finance and Accounting, with a minor in History. My major track focused on Investments and Financial Analysis. While at Lehigh, I was the Head Portfolio Manager of the Investment Management Group, a student group that manages three portfolios, one long/short and two long only. I have had two internships, one a summer internship at a large bank, and another helping to manage the Lehigh University Endowment for nearly a year. Disclaimer: Bill reminds investors to always do their own due diligence on any investment, and to consult their own financial adviser or representative when necessary. Any material provided is intended as general information only, and should not be considered or relied upon as a formal investment recommendation.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article. Investors should also consider seeking advice from a broker or financial adviser before making any investment decisions. Any material in this article should be considered general information, and not relied on as a formal investment recommendation.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (240)

Bill Maurer profile picture
For those who haven't seen it, BlackBerry settling a lawsuit for $165 million. That's a big hit to the cash pile.

Chaffey profile picture
@Bill Maurer What is the cash pile now Bill? Is it still a billion? What will it be with the patent sale?
Bill Maurer profile picture

Well cash was $770 million at end of quarter. This is a $165 million hit. Patent deal is for $600 million, but a quarter of that is deferred for years.

Debt due next year but at current price would be converted to equity.
Chaffey profile picture
@Bill Maurer Thanks Bill. So I am bad at math but I'll just ball park this. 12 years ago BB had a billion cash and now after paying the settlement and lawyers etc 200 million debt . 770 and 600 - 200= 1.17 billion in cash. So for a company with a market cap of 4.08 Billion that is a pretty good chunk of change.
It is unusual wouldn't you say, that a quarter of that 4 billion in cash represents a little over 25% in cash.
I should ask why are they sitting on so much cash.
Energysystems profile picture
So, a raw look at the numbers. 600M patent sale, 450M upfront if financing comes through, 150M on the backend. Minus 165M. So, 435M, if financing comes through. That's a mere 31% of the cash $BB paid for Cylance to try and bolster/sustain/grow the company that's barely treading water.

GreenEggs&Ham profile picture
@Energysystems but the patents had to be worth billions. I know this because it's been posted on BB threads for years by every BB bull.
Mandiant and crwd cooperation
@Zumant CRWD +3% yesterday vs BB red.
CRWD +4% today PM vs BB red

strange how it seems $30 is Chens holy grail payment for a 4X bagger since he took over (still a 0 gainer but its only been 9 years) VS CRWD 8X bagger ALREADY in the books since they started.
CRWD only had AV vs BB has a lesser AV but still at least 50% of the potential plus Athoc radar qnx......

CRWD working with Mandiant aka Google now. They are also part of Amazons cyber partnership.

Meanwhile BB is holding out for someone bigger
mag1205 profile picture

Chen is taking a nap at BlackBerry & keep signing worthless partnerships through his lackeys.
mag1205 profile picture
Bill you have been correct with BlackBerry dog for a long time and I have been wrong investing in this dog except last year when I made some good money in a blip rise of BB due to WSB. Other than that Chen has been a complete disappointment and utter failure at the helm of BlackBerry.
Settlement is so great that CRWD up 4% and BB down 2%. I thought BigZ thought last nights AH +1% meant that news was great.
Oh well.
@Zumant :

“I thought BigZ thought last nights AH +1% meant that news was great. - I never said the news was great. Here is the post: seekingalpha.com/...
@~BigZ~ you chose to include a positive market gain AH with this news due to your positive interpretation as "cleaning up another legacy hangover."

I guess the market spoke up to this news because unlike you they did not fail to see 8 years of legal fees AND 165M payout.

So which one is more positive for the BBs bottom line. Having to settle OR going to court and winning and KEEPING 165M

It's not that you are blatantly "pumping" BigZ. But more like a puppet master of BBs news with mini-pump spins rather than saying how it is.
165M is a lot of money and BB chose to settle cause they don't see it winning. They spent 8 years in legal fees so they understand the ins and outs of the case. They would have went to court for that amount.
I mean they spent years with AVAYA just for a measly 40M. Or years with FB for 0. But if its 165M payout . Here take it .
GreenEggs&Ham profile picture
@Zumant I believe thats called confirmation bias....to the extreme-to the absurd.
crazylikebudfox profile picture
$165mm legal settlement that insurance won't cover. FCF burn of +$60mm this year, $365mm convert due next year - that's most of the cash on balance sheet.

Luckily we have the patent sale....oh yeah, right. Nevermind.
Bill Maurer profile picture

As long as the stock stays above $6, the debt will be converted to equity. No cash payment, but a good chunk of dilution.
crazylikebudfox profile picture
@Bill Maurer Correct, but that's hardly what you consider a deep in-the-money option given where the stock is at.
I'm not saying BB couldn't refi, especially with Fairfax in their pocket, but it ain't coming at a 1.75% coupon.
2022 - BBs 3 or 4 years after the turnaround and since cylance acquisition.

Chen's achievements so far for the year.
1. Share price deep RED for the year.
2. Share price lower than when he took over.
3. Patent sale without financing secured.
4. Lawsuit settlement at a loss of 160M+. Is financing secured for that :)
5. Lower FY revenue projection. Actually lowest ever.
6. IVY commercial release rephrased as "PoC" release. Basically delayed.
7. Share dilution keeps on coming. Free shares for board members for the "achievements"
Racer-X profile picture
@Zumant The usual whiners are still pouting I see.

Life is not perfect. You have to be prepared to roll with the punches. When you have a *negative* cost of -$23 per share, you have super power abilities. You get a free-coast-through-life card.

If you are in control of your destiny and Mr. Market isn't your guide, you don't have to be stressed like a nervous Nellie 24/7.

I really hope I never have to defend our country from foreign invaders with the usual suspects here in my fox hole. I would be like, I have to get outside and out into the open where my chances of survival are MUCH better alone.
@Racer-X lol you sure its not -56. Go back the drawing table. Time to recalculate.
GreenEggs&Ham profile picture
"While BlackBerry believes that the allegations in the case were without merit, it also believes that eliminating the distraction, expense and risk of continued litigation is in the best interests of the Company and its shareholders."

It took them 9 years to figure this out?

Here is the key for those who still own this abominable stock.

"As previously disclosed, given the uncertainties of litigation, BlackBerry had not been in a position to assess the likelihood of any potential loss or adverse effect on its financial condition or to reasonably estimate the amount of potential loss in connection with the class action. As a result of the entry into the agreement in principle, BlackBerry expects that the above-referenced $165 million will be incorporated into its results of operations and financial condition for the fiscal quarter ending May 31, 2022. The Company does not expect to recover any portion of this amount from insurance proceeds."

sfinvestor profile picture

Bb and jc tried to drag this for another decade if they could They have little merit and the 165m shows that.

I really want bb be a little forthcoming and perhaps learn from it but they are truly habitual bunch of bs’ers and can’t help themselves. Just admit it change your ways and be more truthful.
So blackberry goes after FB and spends years and millions in order to produce zero dollars yet when they are sued themselves, they settle

sfinvestor profile picture

When a lawsuit sticks for 9 years, bb would get eaten alive in the trial court.

It’s been 9 years, but SFI reported then that the z10 was the most returned phone by far. By the 6th week , the att dude simply said sold 2 z10’s with 20 returns. Blackberry knew and treat ahareholders like complete rxxxxtds. This is one example where bad behavior is caught.

Mgmt have not improved much since then and I’m still around ripping mgmt for the same shanaegeins
sfinvestor profile picture

Bb lost to fb the day snap prevailed in the us appeals court. If snap won, fb lawsuit was lost as well.

I don’t get why shareholders think they got a dime from fb when all similar cases were total loss for bb.
@sfinvestor :

“bb would get eaten alive in the trial court” - Your claim is in conflict with the Reuters press release:

“Lawsuits accusing companies of misleading shareholders are common in the United States, but few go to trial. From 1997 to 2021, less than 1% of federal securities class actions went to trial, while most were settled or dismissed, according to Cornerstone Research.” - www.reuters.com/...

Release was AH with a +1.07%

This was referenced on the 10K’s for 9 years (pre$Chen) which cleans up another legacy hangover.
GreenEggs&Ham profile picture
10 Reddit Stocks That Are Getting Crushed

9. BlackBerry Limited (NYSE:BB)

Number of Hedge Fund Holders: 15

Decline in Share Price Over Past Six Months: 23.09%

BlackBerry Limited (NYSE:BB) provides security software and services. On March 31, the company posted earnings for the fourth quarter of 2021, reporting earnings per share of $0.01, beating estimates by $0.04. The revenue over the period was $185 million, missing estimates by over $1 million. In late January, the company had agreed to sell almost all of its non-core patent assets to Catapult IP Innovations for around $600 million.

On February 22, Canaccord analyst T. Michael Walkley lowered the price target on BlackBerry Limited (NYSE:BB) stock to $7 from $10 but kept a Buy rating, noting that there was a “broader multiple compression for software and cybersecurity stocks” despite a long-term bullish outlook.

Among the hedge funds being tracked by Insider Monkey, Canada-based investment firm Fairfax Financial Holdings is a leading shareholder in BlackBerry Limited (NYSE:BB) with 46 million shares worth more than $436 million.
GreenEggs&Ham profile picture
Investor's Business Daily
Is BlackBerry Stock A Buy? What Fundamentals, Fund Metrics, Chart Say

IBD Ratings Today

BlackBerry's fundamentals do not measure up to, say, those in IBD's Long-Term Leaders.

Wall Street expects a net loss of 15 cents a share in the fiscal year ending in February 2022. And now, analysts' prior forecast of a profit of 3 cents a share in FY 2023 has worsened to an even bigger net loss of 24 cents.

Since earnings tend to be the No. 1 factor for a stock's growth prospects, it may come as no surprise that BlackBerry gets lackluster ratings from IBD. The stock still shows a damp Composite Rating of 18 on a scale of 1 (mauled) to 99 (magnificent). The SMR Rating, which analyzes sales, profit margins and return on equity, is a worst-possible E on a scale of A to E.

BlackBerry holds an undesirable Earnings Per Share Rating of 12 on a scale of 1 to 99. Generally, you want to focus your watchlist of stocks of those with EPS and Composite scores of 80 or higher.

A 16 Relative Strength Rating means BB stock outperforms only 16% of all companies in the IBD database over the past 12 months. That's down a 37 in December. In general, you'd like to see a score of 80 or higher. A 90 RS Rating or 95? Even better.

The latest price slide began after BlackBerry's rally stalled in the week ended Nov. 5, 2021. BB continues to work on a deep cup. A true handle has not yet formed. Such action would hint at a final shakeout of disenchanted holders who bought at higher prices, eager to get out with a small gain or to cut losses after sitting with a huge paper loss.

For now, the current buy point stays at 12.49, 10 cents above the current cup's left-side high. At this point, however, BB needs to overcome an overhead supply of eager sellers at the 8-to-10 price level.

Retaking the 200-day moving average would be another technical development.

So for now, the stock is not a buy yet.

GreenEggs&Ham profile picture
Stocks of the Week: Twitter, Starbucks, BlackBerry

BlackBerry BB $6.97. 5-day performance (-) 9.13%.

Thinking of buying BlackBerry (BB) - Get BlackBerry Limited Report shares after a big earnings decline?

Don’t bother, said TheStreet’s Bret Kenwell.

Here’s the back story. Shares of BlackBerry slid significantly on Friday, April 1st – the stock was down about 11% on the day after the company reported earnings.

Given the trend of this stock though, it seems unlikely that the overall market’s performance would have much of an impact on this one.

“While AMC Entertainment (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report and GameStop (GME) - Get GameStop Corp. Class A Report have both been trading well lately – and the latter has been particularly good and now plans for a stock split – BlackBerry has not enjoyed the same ride as some of its other meme-stock peers,” Kenwell noted.

BlackBerry stock is now down close to 20% from this week’s high and is down almost 30% so far for the year. Further, shares are down 67% from the 52-week high.

Now the worry becomes, will BlackBerry go on to make new 52-week lows?

“While that characteristic is not necessarily unique to BlackBerry, it’s quite pronounced in this case,” Kenwell said. “Look at the way $9.50 went from support to resistance. The same thing has now happened with $8, which rejected the stock a few days ago.”

Now rotating lower on a bearish earnings reaction, BlackBerry stock has gapped below the 10-day, 21-day and 50-day moving averages. With the continued selling throughout the session, shares are also trading below the 61.8% retracement of the current range as well.

If the stock continues lower from here, it could have $6 written all over it,” Kenwell said.

“That’s about where uptrend support (blue line) comes into play, while BlackBerry has posted significant bounces from the $5.80 to $5.90 area twice in the last two months,” he noted.

At this point, BlackBerry is not a stock for Kenwell. “Not only is it struggling fundamentally, but the technicals are not cooperating either,” he said. “In fact, the technicals are bearish.”

“At a time where we have companies with bullish fundamentals and bullish technicals — or at least one of the attributes — why choose a stock with neither?,” he added.


“At a time where we have companies with bullish fundamentals and bullish technicals — or at least one of the attributes — why choose a stock with neither?,” he added.

Yup, buy quality tech.
CallingOutTheBS profile picture
It continues to amaze me that anyone would still be pumping this stock after a decade in which the share price is no better off, revenues and growth are nowhere near what the expectations were starting in 2012 and the fact that Chen continues to earn rock star pay for delivering mediocrity here in copious amounts. This is easily the most disappointing stock in this sector and those that didn't sell in the $20's have to be kicking themselves because that's likely as good as it'll ever get here.
We are long past the point where Chen should be shown the door and the BOD should be removed and replaced by people who can set forth the orderly winding down of the business and disposal of assets that can provide the long-suffering shareholders here a chance to redeem something from their investment. As a standalone entity, this company is finished and has been for well over five years.
Chaffey profile picture
@GaslightThePumpers You're gas lighting us. Oh well what could we expect ? The Spanish Inquisition?
GreenEggs&Ham profile picture
@GaslightThePumpers Those bulls who are still pumping and posting hopium didn't sell in the 20's because their average price is higher.
CallingOutTheBS profile picture
@GreenEggs&Ham Perhaps but they could’ve recovered more in the $20s than they would now or likely ever for that matter.
Chaffey profile picture
BB down .01 % today . Amazon down 2.6 %.
GreenEggs&Ham profile picture
@Chaffey what is your point?
BlackBerry Joins Cybersecurity and Infrastructure Security Agency‘s Joint Cyber Defense Collaborative to Help Bolster U.S. Cybersecurity blogs.blackberry.com/...

… +4.59% on the news
GreenEggs&Ham profile picture
@~BigZ~ Lol, oversold from the crap ER and the market was up nicely today, especially tech. Up on its ADV, nothing more.

More hopium and nothing burgers. BB should be in the business of press releases to keep the faithful hangin on to their bad investment.

Lets recap. BB closed 56 cents above the close on the day John "The Con" Chen took over.......a decade ago.

It is $13.11 below its 52 week high and $1.26 above its 52 week low.

This stock is such a loser.
arcady profile picture
@~BigZ~ What took so long? I've been wondering this for months!
GreenEggs&Ham profile picture
@~BigZ~ Once again you were incorrect about BB. As posted it was up yesterday due to being oversold since their horrid ER.
It was up with the rest of technology. It was up only on its ADV which shows it had nothing to do with the worthless press release.

Down today about 2% on low volume.

Stock is going nowhere. Terrible investment.
Chaffey profile picture
...BB... 6 million trades today on NYSE and almost 2 million on the TSX. Meanwhile the stock is up 4%. Who are all these people trading a stock that is "Going to Zero"?
GreenEggs&Ham profile picture
@Chaffey Only longtime underwater bulls put forth this going to zero theme. I dont recall bears making such a claim. Personally I'm on record saying it is a$4 to $5 stock.

Is that the straw you grasp? That it isn't going to zero?
Not a very good investing plan.
Denis III profile picture
@GreenEggs&Ham I have to admit that it should be liquidated as the assets are being wasted , running in place. If they take that as zero, so be it.
@Chaffey 20%+ in the red YTD vs CRWD green, CYBR green, FTNT green.

Its the year over year things that ADD up for other companies.
CRWD did not get to 200+ by doing a BB dance where its up mid year but manages to not hold its gains.
Same for CYBR , same for FTNT.
crazylikebudfox profile picture
Wait, now we are looking at 2025 models for IVY initial vehicle deployments? Love how the "commercial release" morphed into a "proof of concept" release.

New 10-K:

"In February 2022, the Company released a version of BlackBerry IVY for proof-of-concept testing and the Company expects installations of BlackBerry IVY in vehicles to begin during the 2024 or 2025 model year."

Prior 10-K:

"The Company expects to release an early access version of BlackBerry IVY in October 2021, followed by a commercial release in February 2022 with installations of BlackBerry IVY to begin in 2023 model year vehicles."
Denis III profile picture
@crazylikebudfox Next QTR Chen strikes again. Thanks for point this out.
@crazylikebudfox shhh..... fake news fake news :) .
Anyways these are the type of things that Chen is known for.
sfinvestor profile picture

There are 2 legal but key words here.

1) installations vs expects installation. expects is lot less firm than installations. legal is bracing for "none". as expects means mere hope in legal jargon world.

2) proof of concept testing version vs commercial release. significantly missed timeline as commercial release may not be in 2022. Proof of concept trial can mean 10% done.

3) begin in 2023 model vs 2024/2025 model.

By that time, IVY is lapped by everyone and anyone.
Just noticed some people have been holding for more than half a decade.

As my 1 year anniversary looms, I want to say that's pretty amazing lol. Here's to better years ahead (or not)
GreenEggs&Ham profile picture
@v_khakis Some posting here have been holding well over a decade.
Denis III profile picture
@GreenEggs&Ham You and I thinking Big and Mag, The BB twins?
GreenEggs&Ham profile picture
@Denis III rasta, rambillo, big, mag, chaffey and more
Denis III profile picture
TD still has a reduce (which I rarely see) and dropped to 6.50, the target price or down 11%+. TD used to be their best cheerleader. Says there are better opportunities elsewhere.
Plum research profile picture
All I hear is analysts lowered their revenue estimates and still thinks BB is worth more than $6. There is no issue here, BB is being valued for a lot less than it's assets is worth, and with negative liabilities it works out well for a value investment.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About BB

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on BB

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.