BlackBerry Reports Fiscal 2019 Risultati del secondo trimestre

L’azienda canadese ha pubblicato i risultati finanziari dei tre mesi terminati il ​​31 agosto 2018 (tutti i dati in dollari USA e US GAAP, salvo diversamente indicato).BlackBerry Reports Fiscal 2019 Risultati del secondo trimestre

 Ricavi totali delle aziende non GAAP di $ 214 milioni; GAAP entrate totali della società di $ 210 milioni

•       Ricavi totali di software e servizi non GAAP di $ 197 milioni; I ricavi totali di software e servizi GAAP di $ 193 milioni

•       I fatturati totali di software e servizi sono cresciuti a due cifre rispetto all’anno precedente

•       Registra un fatturato trimestrale elevato per BlackBerry Technology Solutions, guidato dalla crescita del settore automobilistico verticale

•       Margine lordo non-GAAP del 78%; Margine lordo GAAP del 77%

Second Quarter Fiscal 2019 Results

•        Total company non-GAAP revenue for the second quarter of fiscal 2019 was $214 million with GAAP revenue of $210 million.  Total non-GAAP software and services revenue of $197 million, up 1% year-over-year.  Total GAAP software and services revenue was $193 million, up 4% year-over-year.  Approximately 81% of second quarter software and services revenue (excluding IP licensing and professional services) was recurring.  Non-GAAP gross margin was 78% and GAAP gross margin was 77%.

•        Non-GAAP operating income was $17 million, and positive for the tenth consecutive quarter. GAAP operating income was $39 million. Non-GAAP earnings per share was $0.04 (basic and diluted). GAAP net income for the quarter was $0.08 per basic share and a GAAP net loss of $0.04 per diluted share. GAAP net income includes $22 million for acquired intangibles amortization expense, $21 million in stock compensation expense, $3 million in restructuring charges, a benefit of $70 million related to the fair value adjustment on the debentures, and other amounts as summarized in a table below.

•        Total cash, cash equivalents, short-term and long-term investments was $2.4 billion as of August 31, 2018.  Free cash flow, before considering the impact of restructuring and legal proceedings, was positive $37 million.  Cash generated from operations was $31 million and capital expenditures were $4 million. Excluding $605 million in the face value of the company’s debt, the net cash balance at the end of the quarter was $1.7 billion.

“In the quarter, we exceeded our financial expectations driven by sequential growth in both our BlackBerry Technology Solutions and Enterprise Software and Services businesses” said John Chen, Executive Chairman and CEO, BlackBerry.  “I am very encouraged by BlackBerry’s leadership opportunities in the fast-growing Enterprise of Things, and by our strategy to capitalize on these significant future opportunities with BlackBerry Spark, our platform to securely communicate and collaborate between smart endpoints.”

Outlook

BlackBerry re-affirms its outlook for fiscal 2019, as follows:

•        Total company software and services billings growth is expected to be double-digits

•        Total software and services revenue growth of between 8% to 10% year-over-year

•        Non-GAAP EPS is expected to be positive

•        Free cash flow is expected to be positive for the full year, before considering the impact of restructuring and legal proceedings

Reconciliation of GAAP revenue, gross margin, gross margin percentage, income before income taxes, net income and basic earnings per share to Non-GAAP revenue, gross margin, gross margin percentage, income before income taxes, net income and basic earnings per share for the three months ended August 31, 2018:

Q2 Fiscal 2019 Non-GAAP Adjustments For the Three Months Ended August 31, 2018

(in millions, except for per share amounts)

Income statement location Revenue Gross margin (before taxes) Gross margin % (before taxes) Income before income taxes Net income Basic earnings per share
As reported $210 $161 76.7% $44 $43 $0.08
Debentures fair value adjustment (2) Debentures fair value adjustment —% (70) (70)
Restructuring charges (3) Cost of sales 1 0.4% 1 1
Restructuring charges (3) Selling, marketing and administration —% 2 2
Software deferred revenue acquired (4) Revenue 4 4 0.5% 4 4
Stock compensation    expense (5) Cost of sales 1 0.4% 1 1
Stock compensation

expense (5)

Research and development —% 3 3
Stock compensation

expense (5)

Selling, marketing and administration —% 17 17
Acquired intangibles amortization (6) Amortization —% 22 22
Business acquisition and integration costs recovered (7) Selling, marketing and administration —% (2) (2)
Adjusted $214 $167 78.0% $22 $21 $0.04

Note: Non-GAAP revenue, non-GAAP gross margin, non-GAAP gross margin percentage, non-GAAP income before income taxes, non-GAAP net income and non-GAAP basic earnings per share do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company’s operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of the Company’s GAAP results.

(1)        During the second quarter of fiscal 2019, the Company reported GAAP gross margin of $161 million or 76.7% of revenue. Excluding the impact of restructuring charges and stock compensation expense included in cost of sales and software deferred revenue acquired included in revenue, the non-GAAP gross margin was $167 million, or 78.0% of revenue.

(2)        During the second quarter of fiscal 2019, the Company recorded the Q2 Fiscal 2019 Debentures Fair Value Adjustment of $70 million. This adjustment was presented on a separate line in the Consolidated Statements of Operations.

(3)        During the second quarter of fiscal 2019, the Company incurred restructuring charges of approximately $3 million, of which $1 million was included in cost of sales and $2 million was included in selling, marketing and administration expense.

(4)        During the second quarter of fiscal 2019, the Company recorded software deferred revenue acquired but not recognized due to business combination accounting rules of $4 million, which was included in enterprise software and services revenue.

(5)        During the second quarter of fiscal 2019, the Company recorded stock compensation expense of $21 million, of which $1 million was included in cost of sales, $3 million was included in research and development, and $17 million was included in selling, marketing and administration expense.

(6)        During the second quarter of fiscal 2019, the Company recorded amortization of intangible assets acquired through business combinations of $22 million, which was included in amortization expense.

(7)        During the second quarter of fiscal 2019, the Company recorded business acquisition and integration costs recovered through business combinations of $2 million, which was included in selling, marketing and administration expense.

Supplementary Geographic Revenue Breakdown

BlackBerry Limited

(United States dollars, in millions)

Revenue by Region

For the Quarters Ended
August 31, 2018 May 31, 2018 February 28, 2018 November 30, 2017 August 31, 2017
North America $133 63.3% $139 65.3% $147 63.1% $133 58.9% $133 55.9%
Europe, Middle East and Africa 53 25.3% 52 24.4% 63 27.0% 69 30.5% 76 31.9%
Other regions 24 11.4% 22 10.3% 23 9.9% 24 10.6% 29 12.2%
Total $210 100.0% $213 100.0% $233 100.0% $226 100.0% $238 100.0%


Supplementary Revenue by Product and Service Type Breakdown

BlackBerry Limited

(United States dollars, in millions)

Revenue by Product and Service Type

US GAAP Adjustments Non-GAAP
For the Three Months Ended For the Three Months Ended For the Three Months Ended
August 31, 2018 August 31, 2017 August 31, 2018 August 31, 2017 August 31, 2018 August 31, 2017
Enterprise software and services $88 $91 $4 $11 $92 $102
BlackBerry Technology Solutions 49 38 49 38
Licensing, IP and other 56 56 56 56
Handheld devices 5 16 5 16
SAF 12 37 12 37
Total $210 $238 $4 $11 $214 $249

 

 

For the Six Months Ended
August 31, 2018 August 31, 2017
Cash flows from operating activities
Net income (loss) $(17) $690
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization 79 96
Deferred income taxes (2)
Stock-based compensation 39 24
Impairment of long-lived assets 11
Loss on sale, disposal and abandonment of long-lived assets 4
Debentures fair value adjustment (42) 148
Other long-term receivables (30)
Other 2 (3)
Net changes in working capital items:
Accounts receivable, net 6 45
Other receivables 19 (11)
Income taxes receivable 11 (2)
Other assets (9) 31
Accounts payable (12) (43)
Income taxes payable 2 4
Accrued liabilities (43) (49)
Deferred revenue (7) (42)
Other long-term liabilities (6) (4)
Net cash provided by operating activities 22 867
Cash flows from investing activities
Acquisition of long-term investments (1) (25)
Proceeds on sale or maturity of long-term investments 1
Acquisition of property, plant and equipment (9) (6)
Proceeds on sale of property, plant and equipment 1 3
Acquisition of intangible assets (16) (14)
Acquisition of short-term investments (2,178) (1,693)
Proceeds on sale or maturity of short-term investments 1,939 732
Net cash used in investing activities (264) (1,002)
Cash flows from financing activities
Issuance of common shares 2 3
Common shares repurchased (17)
Net cash provided by (used in) financing activities 2 (14)
Effect of foreign exchange gain (loss) on cash, cash equivalents, restricted cash, and restricted cash equivalents (2) 3
Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period (242) (146)
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period 855 785
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period $613 $639
As at August 31, 2018 February 28, 2018
Cash and cash equivalents $581 $816
Restricted cash and cash equivalents $32 $39
Short-term investments $1,683 $1,443
Long-term investments $56 $55
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