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BlackBerry Narrows Non-GAAP Loss Per Share in Q2 Fiscal 2015 Second Quarter

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BlackBerry Narrows Non-GAAP Loss Per Share in Q2 Fiscal 2015 Second Quarter

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BlackBerry immediately reported monetary outcomes for the three months ended August 30, 2014 (all figures in D.J. dollars and D.R. GAAP, besides the place in any other case indicated).

Q2 Highlights:

--  Cash and investments stability of $3.1 billion on the finish of the fiscal
quarter, up $eleven million from the prior quarter 
--  Normalized money use of $36 million in the quarter, in comparison with $255
million in the prior quarter 
--  Non-GAAP gross margin of forty seven.5%, pushed by constructive non-GAAP hardware
gross margin 
--  Breakeven non-GAAP working margin 
--  The EZ Pass Program has resulted in a complete of 3.4 million licenses
issued for BES10, an almost three-fold improve from final quarter, with
25% of complete licenses traded in from rivals' Mobile Device
Management platforms 
--  ninety one million month-to-month lively BBM customers, up from eighty five million in the prior
quarter 
--  Created the BlackBerry Technology Solutions unit, encompassing QNX
(embedded software program), Certicom (cryptography), Paratek (antenna tuning),
the patent portfolio and the Internet of Things technique 
--  Announced an settlement to accumulate Secusmart, a pacesetter in excessive-safety
voice and textual content encryption, and lately introduced the acquisition of
Movirtu, a supplier of digital SIM options, after the top of the
quarter 

Q2 Results

Revenue for the second quarter of fiscal 2015 was $916 million. The income breakdown for the quarter was roughly forty six% for hardware, forty six% for providers and 8% for software program and different income. During the second quarter, the Company acknowledged hardware income on roughly 2.1 million BlackBerry smartphones. During the second quarter, roughly 2.4 million BlackBerry smartphones have been bought by way of to finish clients, which included shipments made and acknowledged previous to the second quarter and which decreased the Company’s stock in channel.

Non-GAAP loss for the second quarter was $eleven million, or $zero.02 per share. GAAP internet loss for the second quarter was $207 million, or a $zero.39 loss per share. The GAAP internet loss features a non-money cost related to the change in the truthful worth of the Debentures of $167 million (the “Q2 Fiscal 2015 Debentures Fair Value Adjustment”) and pre-tax restructuring expenses of $33 million associated to the restructuring program. The influence of those changes on GAAP internet loss and loss per share is summarized in a desk under.

Total money, money equivalents, brief-time period and lengthy-time period investments was $3.1 billion as of August 30, 2014. The Company used $36 million in the second quarter, excluding internet receipts of $forty seven million associated to non-strategic operations in the course of the quarter. Purchase obligations and different commitments amounted to roughly $1.6 billion as of August 30, 2014, with buy orders with contract producers representing roughly $344 million of the whole.

“We delivered a strong quarter towards our key operational metrics, and we're assured that we'll obtain breakeven money stream by the top of FY15,” stated John Chen, Executive Chairman and CEO, BlackBerry. “Our workforce restructuring is now full, and we're specializing in income progress with considered investments to additional our management place in enterprise mobility and safety, driving us in the direction of non-GAAP profitability throughout FY16.”

Outlook

The Company continues to anticipate sustaining its robust money place, whereas more and more in search of alternatives to prudently make investments in progress. The Company continues to focus on break-even money circulate outcomes by the top of fiscal 2015.

Reconciliation of GAAP gross margin, gross margin proportion, loss earlier than   
revenue taxes, and internet loss to Non-GAAP gross margin, gross margin          
proportion, loss earlier than revenue taxes, internet loss and loss per share:         
(United States dollars, in hundreds of thousands besides per share knowledge)                  
Gross                                      
Gross     margin       Loss                          
margin(1)      %(1)       earlier than                         
(earlier than     (earlier than      revenue          Net    Loss per
taxes)     taxes)       taxes         loss       share
---------- ---------- ----------- ------------ -----------
As reported       $      425      forty six.4% $     (218)  $     (207) $    (zero.39)
Adjustments:                                                                
Restructuring                                                               
fees (2)              10       1.1%         33           29             
Q2 Fiscal 2015                                                              
Debenture Fair                                                             
Value Adjustment                                                           
(3)                       -         -%        167          167             
---------- ---------- ----------- ------------ -----------
Adjusted          $      435      forty seven.5% $      (18)  $      (eleven) $    (zero.02)
---------- ---------- ----------- ------------ -----------
---------- ---------- ----------- ------------ -----------
Note: Non-GAAP gross margin, non-GAAP gross margin proportion, non-GAAP loss
earlier than revenue taxes, non-GAAP internet loss and non-GAAP loss per share don't   
have a standardized which means prescribed by GAAP and thus will not be comparable  
to equally titled measures introduced by different issuers. The Company        
believes that the presentation of those non-GAAP measures allows the       
Company and its shareholders to raised assess the Company's working       
outcomes relative to its working outcomes in prior durations and improves the 
comparability of the knowledge introduced. Investors ought to contemplate these 
non-GAAP measures in the context of the Company's GAAP outcomes.             
(1) During the second quarter of fiscal 2015, the Company reported GAAP    
gross margin of $425 million or forty six.4% of income. Excluding the influence 
of the restructuring expenses included in value of gross sales, the non-GAAP   
gross margin was $435 million, or forty seven.5%.                               
(2) During the second quarter of fiscal 2015, the Company incurred costs 
associated to the restructuring program of $33 million pre-tax, or $29    
million after tax, of which $10 million have been included in value of gross sales,
$19 million have been included in analysis and improvement and $4 million   
have been included in promoting, advertising, and administration bills.      
(3) During the second quarter of fiscal 2015, the Company recorded the Q2  
Fiscal 2015 Debentures Fair Value Adjustment of $167 million. This     
adjustment was introduced on a separate line in the Consolidated        
Statement of Operations.                                               
Supplementary Geographic Revenue Breakdown                                  
(United States dollars, in tens of millions besides per share knowledge)                  
For the quarter ended               
----------------------------------------------------
August 30, 2014   May 31, 2014     March 1, 2014   
---------------- ---------------- ----------------- 
North America           $   297    32.4% $   276    28.6% $   297    30.4 % 
Europe, Middle East and                                                     
Africa                     368    forty.2%     414    forty two.9%     412    forty two.2 % 
Latin America               111    12.1%     one hundred twenty five    12.9%     127    thirteen.zero % 
Asia Pacific                one hundred forty    15.3%     151    15.6%     one hundred forty    14.4 % 
-------- ------- -------- ------- -------- -------- 
Total                   $   916   one hundred.zero% $   966   one hundred.zero% $   976   one hundred.zero % 
-------- ------- -------- ------- -------- -------- 
-------- ------- -------- ------- -------- -------- 
Supplementary Geographic Revenue Breakdown              
(United States dollars, in tens of millions besides per share    
knowledge)                                                  
For the quarter ended      
---------------------------------
November 30,                   
2013        August 31, 2013
---------------- ----------------
North America          $   340    28.5% $   414    26.3%
Europe, Middle East and                                 
Africa                    549    forty six.zero%     686    forty three.6%
Latin America              one hundred thirty five    eleven.3%     196    12.5%
Asia Pacific               169    14.2%     277    17.6%
-------- ------- -------- -------
Total                  $ 1,193   one hundred.zero% $ 1,573   one hundred.zero%
-------- ------- -------- -------
-------- ------- -------- -------

Conference Call and Webcast

A convention name and reside webcast might be held starting at 8 am ET, which may be accessed by dialing 1-888-503-8168 or by logging on at http://ca.blackberry.com/company/investors/events.html. A replay of the convention name may even be obtainable at roughly 10 am by dialing 1-647-436-0148 and getting into move code 8015758# or by clicking the hyperlink above. This replay might be obtainable till midnight ET October tenth, 2014.

BlackBerry Narrows Non-GAAP Loss Per Share in Q2 Fiscal 2015 Second Quarter written by Lucas Atkins on N4BB

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