BlackBerry Announces Q1 Fiscal 2018

"Our financial foundation is solid," - JOHN CHEN

BlackBerry announced not only non-GAAP profitability for the third consecutive quarter; but also growth in emerging markets with their release of their 2018 first quarter results this morning. They're also expecting to be profitable on a non-GAAP basis and generate positive cash flow for the full year (excluding the benefit of the Qualcomm arbitration award).

You can watch a replay of the webcast by visiting BlackBerry's Investor Portal here.

Q 1  H I G H L I G H T S

 

  • Q1 non-GAAP total revenue of $244 million; GAAP total revenue of $235 million
  • Q1 non-GAAP Company total software and services revenues of $169 million; GAAP Company total software and services revenues of $160 million
  • Q1 non-GAAP gross margin of 67%; GAAP gross margin of 64%
  • Total cash balance increased to $2.6 billion at the end of the fiscal first quarter
  • Awarded $940 million from the positive outcome of the Qualcomm arbitration
  • Launched AtHoc ACCOUNT, a new FedRAMP-authorized solution that enables government agencies and large organizations to account for personnel in real time; BlackBerry AtHoc is the only platform to achieve FedRAMP authorization for crisis communications
  • TCL initiated shipments of the BlackBerry KEYone, as part of the Company's licensing program
  • BB Merah Putih initiated shipments of the BlackBerry Aurora, as part of the Company's licensing program
  • Launched BlackBerry SHIELD, an assessment tool for cybersecurity risk management; partnered with Allied World to make the tool available to its cyber insurance policyholders
  • After the quarter, launched QNX Hypervisor 2.0, which enables the partitioning and isolation of safety critical environments in connected cars
  • After the quarter, announced that Qualcomm is adopting QNX Hypervisor 2.0 in support of its digital cockpit solutions
  • After the quarter, BlackBerry named a "Leader" in the Gartner Magic Quadrant for Enterprise Mobility Management Suites
  • After the quarter, announced the general availability of BBM Enterprise SDK to address the Communications Platform as a Service (CPaaS) market; more than 60 ISVs are using the tool to develop mobile apps for iOS and Android

 

"In Q1, we made great progress strengthening our strategic position in emerging growth markets, most notably in cybersecurity and the Enterprise of Things," said John Chen, Executive Chairman and CEO, BlackBerry. "We secured key design wins in high growth segments of automotive technology, including advanced driver assist, digital instrument cluster and our hypervisor solution. Our ecosystem is growing with Qualcomm and NVIDIA adopting BlackBerry technology for their automotive platforms. Furthermore, we have been recognized once again as a leader in Gartner's Magic Quadrant on the strength of our BlackBerry Secure platform."

Non-GAAP operating income was $14 million, and non-GAAP earnings per share was $0.02. GAAP operating income was $536 million. GAAP net income for the quarter was $671 million, or $1.23 per fully diluted share. GAAP net income includes $25 million in amortization of acquired intangibles, $17 million in restructuring charges, $218 million of fair value adjustment related to the debentures, $815 million in expense recovery and $139 million in investment income related to the positive outcome of the Qualcomm arbitration.

Non-GAAP revenue for the first quarter of fiscal 2018 was $244 million with GAAP revenue of $235 million. Approximately 79% of first quarter software and services revenue (excluding IP licensing and professional services) was recurring. BlackBerry had over 3,000 enterprise customer orders in the quarter.

Total cash, cash equivalents, short-term and long-term investments increased by $855 million to approximately $2.6 billion as of May 31, 2017. This reflects free cash flow of $860 million, which includes cash flow from operations of $863 million. Excluding $605 million in the face value of the Company's debt, the net cash balance at the end of the quarter was approximately $1.9 billion. There were no purchase orders with contract manufacturers at the end of the first quarter, or at the end of the fourth quarter of fiscal 2017, down from $150 million a year ago.

S: BlackBerry, Investor Portal

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