BlackBerry Reports First Quarter Fiscal Year 2022 Results

 
 

  -- Total company revenue of $174 million .  

 

  -- IoT revenue of $43 million .  

 

  -- Cyber Security revenue of $107 million .  

 

  -- Licensing & Other revenue of $24 million .  

 

  -- Non-GAAP loss per basic and diluted share of $0.05 ; GAAP loss per basic and diluted share of $0.11 .  

 

  WATERLOO, ON , June 24, 2021 /PRNewswire/ -- BlackBerry Limited (NYSE: BB; TSX: BB) today reported financial results for the three months ended May 31, 2021 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

 
 

  BlackBerry Logo Black (PRNewsfoto/Blackberry Limited) 

 
 

  "This quarter we aligned the business around the two key market opportunities – IoT and Cyber Security.  In IoT we are pleased with the strong progress of the auto business, despite global chip shortage headwinds.  Design activity remains strong, the number of vehicles with QNX software embedded has increased to 195 million, and royalty revenue backlog grew by 9% year-over-year.  Tangible progress continues to be made with BlackBerry IVY, including the launch of the IVY Advisory Council and the first investment by the IVY Innovation Fund," said John Chen , Executive Chairman & CEO, BlackBerry. "On the Cyber Security side, we announced two new significant product launches as part of our XDR strategy – BlackBerry Gateway and Optics 3.0. We continue to see strong pipeline growth for our new UES products."  

 

   First Quarter Fiscal 2022 Financial Highlights   

 
  • Total company revenue for the first quarter of fiscal 2022 was $174 million .
  •  
  • Total company gross margin was 66%.
  •  
  • IoT revenue for the first quarter of fiscal 2022 was $43 million , with gross margin of 84% and ARR of $86 million .
  •  
  • BlackBerry QNX royalty revenue backlog increased from $450 million in Q1 FY21 to $490 million in Q1 FY22, a 9% increase year-over-year.
  •  
  • Cyber Security revenue for the first quarter of fiscal 2022 was $107 million , with gross margin of 57% and ARR of $364 million .
  •  
  • Licensing and Other revenue for the first quarter of fiscal 2022 was $24 million as negotiations for the sale of a portion of the patent portfolio continue.
  •  
  • Non-GAAP operating loss was $23 million . GAAP operating loss was $58 million .
  •  
  • Non-GAAP loss per share was $0.05 (basic and diluted). GAAP loss per share was $0.11 (basic and diluted).
  •  
  • Total cash, cash equivalents, short-term and long-term investments were $769 million .
  •  
  • Net cash used by operating activities was $33 million .
  •  

   Business Highlights & Strategic Announcements   

 
  • Volvo Group selected BlackBerry® QNX® operating system and hypervisor as foundation for its 'Volvo Dynamic Software Platform', to meet the needs of the 'whole truck'.
  •  
  • WM Motor, a Chinese electric carmaker, chose BlackBerry QNX to power its W6 all-electric SUV.
  •  
  • BlackBerry QNX and BiTECH Automotive (formerly Bosch Car Multimedia Wuhu Co. Ltd) jointly developed a digital LCD instrument cluster for Changan's UNI-K SUV.
  •  
  • BlackBerry QNX is now embedded in over 195 million vehicles, increasing from over 175 million vehicles last year.
  •  
  • BlackBerry launched BlackBerry IVY Advisory Council to drive use case generation using BlackBerry IVY™. Initial members include Geico, Cerence, HERE, Telus and Amazon.
  •  
  • BlackBerry's IVY Innovation Fund made its first investment in Electra Vehicles, a start-up that will use data from BlackBerry IVY in its AI-driven platform to optimize battery performance.
  •  
  • BlackBerry announced appointment of Mattias Eriksson as President of IoT business unit.
  •  
  • BlackBerry announced BlackBerry® Optics 3.0, its next-generation cloud-based endpoint detection and response (EDR) solution.
  •  
  • BlackBerry further built out Extended Detection and Response (XDR) strategy with launch of BlackBerry® Gateway, the company's first AI-empowered Zero Trust Network Access (ZTNA) product.
  •  
  • BlackBerry's AI-driven, prevention-first BlackBerry® Protect product demonstrated to block both DarkSide ransomware and Conti ransomware, even using the 2015 version of the product.
  •  

   Outlook
 
BlackBerry will provide fiscal year 2022 outlook in connection with the quarterly earnings announcement on its earnings conference call. The earnings call transcript will be made available on our website and on SEDAR.

 

  Use of Non-GAAP Financial Measures
The tables at the end of this press release include a reconciliation of the non-GAAP financial measures used by the company to comparable U.S. GAAP measures and an explanation of why the company uses them.

 

  Conference Call and Webcast
A conference call and live webcast will be held today beginning at 5:30 p.m. ET , which can be accessed by dialing +1 (877) 682-6267 or by logging on at BlackBerry.com/Investors.

 

A replay of the conference call will also be available at approximately 8:30 p.m. ET by dialing +1 (800) 585-8367 and entering Conference ID #2676452 and at the link above.

 

  About BlackBerry
BlackBerry (NYSE: BB; TSX: BB) provides intelligent security software and services to enterprises and governments around the world. The company secures more than 500M endpoints including more than 195M vehicles.  Based in Waterloo, Ontario , the company leverages AI and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy, and is a leader in the areas of endpoint security, endpoint management, encryption, and embedded systems.  BlackBerry's vision is clear - to secure a connected future you can trust.

 

  BlackBerry. Intelligent Security. Everywhere.
For more information, visit BlackBerry.com and follow @BlackBerry.

 

  Investor Contact:  

 

BlackBerry Investor Relations
+1 (519) 888-7465
  investor_relations@blackberry.com   

 

  Media Contact:  

 

BlackBerry Media Relations
+1 (519) 597-7273
  mediarelations@blackberry.com   

 

This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding BlackBerry's plans, strategies and objectives including its expectations with respect to BlackBerry QNX and BlackBerry IVY and increasing and enhancing its product and service offerings.

 

The words "expect", "anticipate", "estimate", "may", "will", "should", "could", "intend", "believe", "target", "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances, including but not limited to, BlackBerry's expectations regarding its business, strategy, opportunities and prospects, the launch of new products and services, general economic conditions, the ongoing COVID-19 pandemic, competition, and BlackBerry's expectations regarding its financial performance.  Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following factors: BlackBerry's ability to enhance, develop, introduce or monetize products and services for the enterprise market in a timely manner with competitive pricing, features and performance; BlackBerry's ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; the intense competition faced by BlackBerry; the occurrence or perception of a breach of BlackBerry's network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; the failure or perceived failure of BlackBerry's solutions to detect or prevent security vulnerabilities; the impact of the COVID-19 pandemic; BlackBerry's continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; BlackBerry's dependence on its relationships with resellers and channel partners; litigation against BlackBerry; network disruptions or other business interruptions; BlackBerry's ability to foster an ecosystem of third-party application developers; BlackBerry's products and services being dependent upon interoperability with rapidly changing systems provided by third parties; BlackBerry's ability to obtain rights to use third-party software and its use of open source software; failure to protect BlackBerry's intellectual property and to earn expected revenues from intellectual property rights; BlackBerry being found to have infringed on the intellectual property rights of others;  the substantial asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; BlackBerry's indebtedness; tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities; the use and management of user data and personal information; government regulations applicable to BlackBerry's products and services, including products containing encryption capabilities; the failure of BlackBerry's suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or comply with applicable laws; regulations regarding health and safety, hazardous materials usage and conflict minerals; acquisitions, divestitures and other business initiatives; foreign operations, including fluctuations in foreign currencies; the fluctuation of BlackBerry's quarterly revenue and operating results; the volatility of the market price of BlackBerry's common shares; adverse economic, geopolitical and environmental conditions.

 

These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry's Annual Report on Form    10-K and the "Cautionary Note Regarding Forward-Looking Statements" section of BlackBerry's MD&A (copies of which filings may be obtained at www.sedar.com or www.sec.gov ). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry's forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry's shareholders to view the anticipated performance and prospects of BlackBerry from management's perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry's financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry's business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. BlackBerry has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

 

 

 
 
                                                                                                                                                                                                                                            
 

 

 

   BlackBerry Limited   

 

  Incorporated under the Laws of Ontario  

 

  (United States dollars, in millions except share and per share amounts) (unaudited)  

 

 

 

   Consolidated Statements of Operations   

 
 
 
 
 

   For The Three Months Ended   

 
 
 

   May 31, 2021   

 
 
 

   February 28, 2021   

 
 
 

   May 31, 2020   

 
 

   Revenue   

 
 

   $   

 
 

   174   

 
 
 
 

  $  

 
 

  210  

 
 
 
 

  $  

 
 

  206  

 
 
 

   Cost of sales   

 
 

   60   

 
 
 
 

  58  

 
 
 
 

  63  

 
 
 

   Gross margin   

 
 

   114   

 
 
 
 

  152  

 
 
 
 

  143  

 
 
 

   Gross margin %   

 
 

   65.5   

 
 

   %   

 
 
 

  72.4  

 
 

  %  

 
 
 

  69.4  

 
 

  %  

 
 

   Operating expenses   

 
 
 
 
 
 
 

  Research and development  

 
 

   57   

 
 
 
 

  48  

 
 
 
 

  57  

 
 
 

  Selling, marketing and administration  

 
 

   73   

 
 
 
 

  92  

 
 
 
 

  90  

 
 
 

  Amortization  

 
 

   46   

 
 
 
 

  45  

 
 
 
 

  46  

 
 
 

  Impairment of goodwill  

 
 

    

 
 
 
 

  

 
 
 
 

  594  

 
 
 

  Impairment of long-lived assets  

 
 

    

 
 
 
 

  22  

 
 
 
 

  

 
 
 

  Debentures fair value adjustment  

 
 

   (4)   

 
 
 
 

  258  

 
 
 
 

  1  

 
 
 
 

   172   

 
 
 
 

  465  

 
 
 
 

  788  

 
 
 

   Operating loss   

 
 

   (58)   

 
 
 
 

  (313)  

 
 
 
 

  (645)  

 
 
 

  Investment loss, net  

 
 

   (2)   

 
 
 
 

  

 
 
 
 

  

 
 
 

   Loss before income taxes   

 
 

   (60)   

 
 
 
 

  (313)  

 
 
 
 

  (645)  

 
 
 

   Provision for (recovery of) income taxes   

 
 

   2   

 
 
 
 

  2  

 
 
 
 

  (9)  

 
 
 

   Net loss   

 
 

   $   

 
 

   (62)   

 
 
 
 

  $  

 
 

  (315)  

 
 
 
 

  $  

 
 

  (636)  

 
 
 

   Loss per share   

 
 
 
 
 
 
 

  Basic  

 
 

   $   

 
 

   (0.11)   

 
 
 
 

  $  

 
 

  (0.56)  

 
 
 
 

  $  

 
 

  (1.14)  

 
 
 

  Diluted  

 
 

   $   

 
 

   (0.11)   

 
 
 
 

  $  

 
 

  (0.56)  

 
 
 
 

  $  

 
 

  (1.14)  

 
 
 
 
 
 
 
 
 

  Weighted-average number of common shares outstanding (000s)  

 
 
 
 
 
 
 

  Basic  

 
 

   567,358   

 
 
 
 

  566,089  

 
 
 
 

  557,839  

 
 
 

  Diluted  

 
 

   567,358   

 
 
 
 

  566,089  

 
 
 
 

  557,839  

 
 
 

  Total common shares outstanding (000s)  

 
 

   566,248   

 
 
 
 

  565,505  

 
 
 
 

  555,623  

 
 
 
 

 

 
 
                                                                                                                                                                                                                                                               
 

 

 

   BlackBerry Limited   

 

  Incorporated under the Laws of Ontario  

 

  (United States dollars, in millions) (unaudited)  

 

 

 

 

 

   Consolidated Balance Sheets   

 
 
 
 
 
 
 

   As at   

 
 
 
 

   May 31, 2021   

 
 
 

   February 28, 2021   

 
 

   Assets   

 
 
 
 
 
 

   Current   

 
 
 
 
 
 

  Cash and cash equivalents  

 
 
 

   $   

 
 

   339   

 
 
 
 

  $  

 
 

  214  

 
 
 

  Short-term investments  

 
 
 

   364   

 
 
 
 

  525  

 
 
 

  Accounts receivable, net of allowance of $9 and $10, respectively  

 
 
 

   153   

 
 
 
 

  182  

 
 
 

  Other receivables  

 
 
 

   26   

 
 
 
 

  25  

 
 
 

  Income taxes receivable  

 
 
 

   10   

 
 
 
 

  10  

 
 
 

  Other current assets  

 
 
 

   61   

 
 
 
 

  50  

 
 
 
 
 

   953   

 
 
 
 

  1,006  

 
 
 

   Restricted cash equivalent and restricted short-term investments   

 
 
 

   29   

 
 
 
 

  28  

 
 
 

   Long-term investments   

 
 
 

   37   

 
 
 
 

  37  

 
 
 

   Other long-term assets   

 
 
 

   15   

 
 
 
 

  16  

 
 
 

   Operating lease right-of-use assets, net   

 
 
 

   59   

 
 
 
 

  63  

 
 
 

   Property, plant and equipment, net   

 
 
 

   46   

 
 
 
 

  48  

 
 
 

   Goodwill   

 
 
 

   850   

 
 
 
 

  849  

 
 
 

   Intangible assets, net   

 
 
 

   732   

 
 
 
 

  771  

 
 
 
 
 

   $   

 
 

   2,721   

 
 
 
 

  $  

 
 

  2,818  

 
 
 

   Liabilities   

 
 
 
 
 
 

   Current   

 
 
 
 
 
 

  Accounts payable  

 
 
 

   $   

 
 

   22   

 
 
 
 

  $  

 
 

  20  

 
 
 

  Accrued liabilities  

 
 
 

   164   

 
 
 
 

  178  

 
 
 

  Income taxes payable  

 
 
 

   8   

 
 
 
 

  6  

 
 
 

  Deferred revenue, current  

 
 
 

   208   

 
 
 
 

  225  

 
 
 
 
 

   402   

 
 
 
 

  429  

 
 
 

   Deferred revenue, non-current   

 
 
 

   57   

 
 
 
 

  69  

 
 
 

   Operating lease liabilities   

 
 
 

   85   

 
 
 
 

  90  

 
 
 

   Other long-term liabilities   

 
 
 

   6   

 
 
 
 

  6  

 
 
 

   Long-term debentures   

 
 
 

   715   

 
 
 
 

  720  

 
 
 
 
 

   1,265   

 
 
 
 

  1,314  

 
 
 

   Shareholders' equity   

 
 
 
 
 
 

   Capital stock and additional paid-in capital   

 
 
 

   2,834   

 
 
 
 

  2,823  

 
 
 

   Deficit   

 
 
 

   (1,368)   

 
 
 
 

  (1,306)  

 
 
 

   Accumulated other comprehensive loss   

 
 
 

   (10)   

 
 
 
 

  (13)  

 
 
 
 
 

   1,456   

 
 
 
 

  1,504  

 
 
 
 
 

   $   

 
 

   2,721   

 
 
 
 

  $  

 
 

  2,818  

 
 
 
 

 

 
 
                                                                                                                                                                                                                                                    
 

 

 

   BlackBerry Limited   

 

  Incorporated under the Laws of Ontario  

 

  (United States dollars, in millions) (unaudited)  

 

   Consolidated Statements of Cash Flows   

 

 

 
 
 

   Three Months Ended   

 
 
 

   May 31, 2021   

 
 
 

   May 31, 2020   

 
 

   Cash flows from operating activities   

 
 
 
 
 

  Net loss  

 

 

 
 

   $   

 
 

   (62)   

 
 
 
 

  $  

 
 

  (636)  

 
 
 

  Adjustments to reconcile net loss to net cash used in operating activities:  

 
 
 
 
 

  Amortization  

 
 

   49   

 
 
 
 

  50  

 
 
 

  Stock-based compensation  

 
 

   7   

 
 
 
 

  13  

 
 
 

  Impairment of goodwill  

 
 

    

 
 
 
 

  594  

 
 
 

  Debentures fair value adjustment  

 
 

   (4)   

 
 
 
 

  1  

 
 
 

  Operating leases  

 
 

   (3)   

 
 
 
 

  (3)  

 
 
 

  Other  

 
 

   (3)   

 
 
 
 

  (1)  

 
 
 

  Net changes in working capital items  

 
 
 
 
 

  Accounts receivable, net of allowance  

 
 

   29   

 
 
 
 

  1  

 
 
 

  Other receivables  

 
 

   (1)   

 
 
 
 

  (6)  

 
 
 

  Income taxes receivable  

 
 

    

 
 
 
 

  (2)  

 
 
 

  Other assets  

 
 

   (6)   

 
 
 
 

  

 
 
 

  Accounts payable  

 
 

   2   

 
 
 
 

  15  

 
 
 

  Accrued liabilities  

 
 

   (14)   

 
 
 
 

  (18)  

 
 
 

  Income taxes payable  

 
 

   2   

 
 
 
 

  (7)  

 
 
 

  Deferred revenue  

 
 

   (29)   

 
 
 
 

  (32)  

 
 
 

   Net cash used in operating activities   

 
 

   (33)   

 
 
 
 

  (31)  

 
 
 

   Cash flows from investing activities   

 
 
 
 
 

  Acquisition of long-term investments  

 
 

    

 
 
 
 

  (1)  

 
 
 

  Acquisition of property, plant and equipment  

 
 

   (2)   

 
 
 
 

  (1)  

 
 
 

  Acquisition of intangible assets  

 
 

   (6)   

 
 
 
 

  (8)  

 
 
 

  Acquisition of short-term investments  

 
 

   (209)   

 
 
 
 

  (299)  

 
 
 

  Proceeds on sale or maturity of restricted short-term investments  

 
 

   24   

 
 
 
 

  

 
 
 

  Proceeds on sale or maturity of short-term investments  

 
 

   369   

 
 
 
 

  270  

 
 
 

   Net cash provided by (used in) investing activities   

 
 

   176   

 
 
 
 

  (39)  

 
 
 

   Cash flows from financing activities   

 
 
 
 
 

  Issuance of common shares  

 
 

   4   

 
 
 
 

  4  

 
 
 

   Net cash provided by financing activities   

 
 

   4   

 
 
 
 

  4  

 
 
 

   Effect of foreign exchange gain on cash, cash equivalents, restricted cash, and restricted cash
equivalents
 
 

 
 

   3   

 
 
 
 

  

 
 
 

   Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents
during the period
 
 

 
 

   150   

 
 
 
 

  (66)  

 
 
 

   Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period   

 
 

   218   

 
 
 
 

  426  

 
 
 

   Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period   

 
 

   $   

 
 

   368   

 
 
 
 

  $  

 
 

  360  

 
 
 
 

   As at   

 
 

   May 31, 2021   

 
 
 

   February 28, 2021   

 
 

  Cash and cash equivalents  

 
 

   $   

 
 

   339   

 
 
 
 

  $  

 
 

  214  

 
 
 

  Restricted cash equivalents and restricted short-term investments  

 
 

   29   

 
 
 
 

  28  

 
 
 

  Short-term investments  

 
 

   364   

 
 
 
 

  525  

 
 
 

  Long-term investments  

 
 

   37   

 
 
 
 

  37  

 
 
 
 

   $   

 
 

   769   

 
 
 
 

  $  

 
 

  804  

 
 
 
 

 

 

  Reconciliations of the Company's Segment Results to the Consolidated Results  

 

The Company reports segment information in accordance with U.S. GAAP Accounting Standards Codification Section 280 based on the "management" approach. The management approach designates the internal reporting used by the Chief Operating Decision Maker for making decisions and assessing performance of the Company's reportable operating segments.

 

The following table reconciles the Company's segment results for the three months ended May 31, 2021 to consolidated U.S. GAAP results:

 
 
                                                                                                                          
 
 

  For the Three Months Ended May 31, 2021  

 
 
 

   (in millions) (unaudited)   

 
 
 

  Cyber Security  

 
 
 

  IoT  

 
 

  Licensing and
Other
 

 
 

   Segment Totals   

 
 
 

  Reconciling
Items
 

 
 
 

   Consolidated
U.S. GAAP
 
 

 
 

  Revenue  

 
 

  $  

 
 

  107  

 
 
 
 

  $  

 
 

  43  

 
 
 
 

  $  

 
 

  24  

 
 
 
 

  $  

 
 

  174  

 
 
 
 

  $  

 
 

  

 
 
 
 

  $  

 
 

  174  

 
 
 

  Cost of sales (1)  

 
 

  46  

 
 
 
 

  7  

 
 
 
 

  6  

 
 
 
 

  59  

 
 
 
 

  1  

 
 
 
 

  60  

 
 
 

  Gross margin  

 
 

  $  

 
 

  61  

 
 
 
 

  $  

 
 

  36  

 
 
 
 

  $  

 
 

  18  

 
 
 
 

  $  

 
 

  115  

 
 
 
 

  $  

 
 

  (1)  

 
 
 
 

  $  

 
 

  114  

 
 
 

  Operating expenses  

 
 
 
 
 
 
 
 
 
 

  172  

 
 
 
 

  172  

 
 
 

  Investment loss, net  

 
 
 
 
 
 
 
 
 
 

  2  

 
 
 
 

  2  

 
 
 

  Loss before income taxes  

 
 
 
 
 
 
 
 
 
 
 
 

  $  

 
 

  (60)  

 
 
 
 

  ______________________________

 
 
  
 

   (1)  

 
 

  See "Reconciliations of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures" for a reconciliation of selected U.S. GAAP-based measures to adjusted measures for the three months ended May 31, 2021.  

 
 
 

The following table reconciles the Company's segment results for the three months ended May 31, 2020 to consolidated U.S. GAAP results:

 
 
                                                                                                            
 
 

  For the Three Months Ended May 31, 2020  

 
 
 

   (in millions) (unaudited)   

 
 
 

  Cyber Security  

 
 
 

  IoT  

 
 

  Licensing and
Other
 

 
 

   Segment Totals   

 
 
 

  Reconciling
Items
 

 
 
 

   Consolidated
U.S. GAAP
 
 

 
 

  Revenue  

 
 

  $  

 
 

  119  

 
 
 
 

  $  

 
 

  29  

 
 
 
 

  $  

 
 

  58  

 
 
 
 

  $  

 
 

  206  

 
 
 
 

  $  

 
 

  

 
 
 
 

  $  

 
 

  206  

 
 
 

  Cost of sales (1)  

 
 

  47  

 
 
 
 

  6  

 
 
 
 

  8  

 
 
 
 

  61  

 
 
 
 

  2  

 
 
 
 

  63  

 
 
 

  Gross margin  

 
 

  $  

 
 

  72  

 
 
 
 

  $  

 
 

  23  

 
 
 
 

  $  

 
 

  50  

 
 
 
 

  $  

 
 

  145  

 
 
 
 

  $  

 
 

  (2)  

 
 
 
 

  $  

 
 

  143  

 
 
 

  Operating expenses  

 
 
 
 
 
 
 
 
 
 

  788  

 
 
 
 

  788  

 
 
 

  Loss before income taxes  

 
 
 
 
 
 
 
 
 
 
 
 

  $  

 
 

  (645)  

 
 
 
 

  ______________________________

 

 

 
 
  
 

   (1)  

 
 

  See "Reconciliations of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures" for a reconciliation of selected U.S. GAAP-based measures to adjusted measures for the three months ended May 31, 2020.  

 
 
 

  Reconciliations of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures  

 

In the Company's internal reports, management evaluates the performance of the Company's business on a non-GAAP basis by excluding the impact of certain items below from the Company's U.S. GAAP financial results. The Company believes that these non-GAAP measures provide management, as well as readers of the Company's financial statements, with a consistent basis for comparison across accounting periods and is useful in helping management and readers understand the Company's operating results and underlying operational trends. In the first quarter of fiscal 2022, the Company discontinued its use of software deferred revenue acquired and software deferred commission acquired adjustments in its non-GAAP financial measures due to the quantitative decline in the adjustments over time. For purposes of comparability, the Company's non-GAAP financial measures for the three months ended May 31, 2020 have been updated to conform to the current year's presentation.

 

Readers are cautioned that adjusted gross margin, adjusted gross margin percentage, adjusted operating expense, adjusted operating loss, adjusted EBITDA, adjusted operating loss margin percentage, adjusted EBITDA margin percentage, adjusted net income (loss), adjusted income (loss) per share, adjusted research and development expense, adjusted selling, marketing and administrative expense and adjusted amortization expense and similar measures do not have any standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to similarly titled measures reported by other companies. These non-GAAP financial measures should be considered in the context of the U.S. GAAP results.

 

   Reconciliation of non-GAAP based measures with most directly comparable U.S. GAAP based measures for the three months ended May 31, 2021 and May 31, 2020    

 

A reconciliation of the most directly comparable U.S. GAAP financial measures for the three months ended May 31, 2021 and May 31, 2020 to adjusted financial measures is reflected in the tables below:

 
 
                                                        
 

   For the Three Months Ended (in millions)   

 
 
 

   May 31, 2021   

 
 
 

   May 31, 2020   

 
 

   Gross margin   

 
 
 

  $  

 
 

  114  

 
 
 
 

  $  

 
 

  143  

 
 
 

  Stock compensation expense  

 
 
 

  1  

 
 
 
 

  2  

 
 
 

   Adjusted gross margin   

 
 
 

  $  

 
 

  115  

 
 
 
 

  $  

 
 

  145  

 
 
 
 
 
 
 
 

   Gross margin %   

 
 
 

  65.5  

 
 

  %  

 
 
 

  69.4  

 
 

  %  

 
 

  Stock compensation expense  

 
 
 

  0.6  

 
 

  %  

 
 
 

  1.0  

 
 

  %  

 
 

   Adjusted gross margin %   

 
 
 

  66.1  

 
 

  %  

 
 
 

  70.4  

 
 

  %  

 
 
 

Reconciliation of operating expense for the three months ended May 31, 2021 and May 31, 2020 to adjusted operating expense is reflected in the tables below:

 
 
                                                          
 

   For the Three Months Ended (in millions)   

 
 
 

   May 31, 2021   

 
 
 

   May 31, 2020   

 
 

   Operating expense   

 
 
 

  $  

 
 

  172  

 
 
 
 

  $  

 
 

  788  

 
 
 

  Restructuring charges  

 
 
 

  

 
 
 
 

  1  

 
 
 

  Stock compensation expense  

 
 
 

  6  

 
 
 
 

  12  

 
 
 

  Debenture fair value adjustment  

 
 
 

  (4)  

 
 
 
 

  1  

 
 
 

  Acquired intangibles amortization  

 
 
 

  32  

 
 
 
 

  33  

 
 
 

  Goodwill impairment charge  

 
 
 

  

 
 
 
 

  594  

 
 
 

   Adjusted operating expense   

 
 
 

  $  

 
 

  138  

 
 
 
 

  $  

 
 

  147  

 
 
 
 

Reconciliation of U.S. GAAP net loss and U.S. GAAP basic loss per share for the three months ended May 31, 2021 and May 31, 2020 to adjusted net income (loss) and adjusted basic earnings (loss) per share is reflected in the tables below:

 
 
                                                                                               
 

   For the Three Months Ended (in millions, except per share amounts)   

 
 
 

   May 31, 2021   

 
 
 

   May 31, 2020   

 
 
 
 
 
 

   Basic
earnings
(loss) per
share
 
 

 
 
 
 
 

   Basic
earnings
(loss) per
share
 
 

 
 

   Net loss   

 
 
 

  $  

 
 

  (62)  

 
 
 
 

  $(0.11)  

 
 
 

  $  

 
 

  (636)  

 
 
 
 

  $(1.14)  

 
 

  Restructuring charges  

 
 
 

  

 
 
 
 
 
 

  1  

 
 
 
 
 

  Stock compensation expense  

 
 
 

  7  

 
 
 
 
 
 

  14  

 
 
 
 
 

  Debenture fair value adjustment  

 
 
 

  (4)  

 
 
 
 
 
 

  1  

 
 
 
 
 

  Acquired intangibles amortization  

 
 
 

  32  

 
 
 
 
 
 

  33  

 
 
 
 
 

  Goodwill impairment charge  

 
 
 

  

 
 
 
 
 
 

  594  

 
 
 
 
 

   Adjusted net income (loss)   

 
 
 

  $  

 
 

  (27)  

 
 
 
 

  $(0.05)  

 
 
 

  $  

 
 

  7  

 
 
 
 

  $0.01  

 
 
 

Reconciliation of U.S. GAAP research and development, selling, marketing and administration, and amortization expense for the three months ended May 31, 2021 and May 31, 2020 to adjusted research and development, selling, marketing and administration, and amortization expense is reflected in the tables below:

 
 
                                                                                                 
 

   For the Three Months Ended (in millions)   

 
 
 

   May 31, 2021   

 
 
 

   May 31, 2020   

 
 

   Research and development   

 
 
 

  $  

 
 

  57  

 
 
 
 

  $  

 
 

  57  

 
 
 

  Stock compensation expense  

 
 
 

  2  

 
 
 
 

  3  

 
 
 

   Adjusted research and development   

 
 
 

  $  

 
 

  55  

 
 
 
 

  $  

 
 

  54  

 
 
 
 
 
 
 
 

   Selling, marketing and administration   

 
 
 

  $  

 
 

  73  

 
 
 
 

  $  

 
 

  90  

 
 
 

  Restructuring charges  

 
 
 

  

 
 
 
 

  1  

 
 
 

  Stock compensation expense  

 
 
 

  4  

 
 
 
 

  9  

 
 
 

   Adjusted selling, marketing and administration   

 
 
 

  $  

 
 

  69  

 
 
 
 

  $  

 
 

  80  

 
 
 
 
 
 
 
 

   Amortization   

 
 
 

  $  

 
 

  46  

 
 
 
 

  $  

 
 

  46  

 
 
 

  Acquired intangibles amortization  

 
 
 

  32  

 
 
 
 

  33  

 
 
 

   Adjusted amortization   

 
 
 

  $  

 
 

  14  

 
 
 
 

  $  

 
 

  13  

 
 
 
 

Adjusted operating loss, adjusted EBITDA, adjusted operating loss margin percentage and adjusted EBITDA margin percentage for the three months ended May 31, 2021 and May 31, 2020 are reflected in the table below.

 
 
                                                                                                                       
 

   For the Three Months Ended (in millions)   

 
 
 

   May 31, 2021   

 
 
 

   May 31, 2020   

 
 

   Operating loss   

 
 
 

  $  

 
 

  (58)  

 
 
 
 

  $  

 
 

  (645)  

 
 
 

  Non-GAAP adjustments to operating loss  

 
 
 
 
 
 

  Restructuring charges  

 
 
 

  

 
 
 
 

  1  

 
 
 

  Stock compensation expense  

 
 
 

  7  

 
 
 
 

  14  

 
 
 

  Debenture fair value adjustment  

 
 
 

  (4)  

 
 
 
 

  1  

 
 
 

  Acquired intangibles amortization  

 
 
 

  32  

 
 
 
 

  33  

 
 
 

  Goodwill impairment charge  

 
 
 

  

 
 
 
 

  594  

 
 
 

  Total non-GAAP adjustments to operating loss  

 
 
 

  35  

 
 
 
 

  643  

 
 
 

   Adjusted operating loss   

 
 
 

  (23)  

 
 
 
 

  (2)  

 
 
 

  Amortization  

 
 
 

  49  

 
 
 
 

  50  

 
 
 

  Acquired intangibles amortization  

 
 
 

  (32)  

 
 
 
 

  (33)  

 
 
 

   Adjusted EBITDA   

 
 
 

  $  

 
 

  (6)  

 
 
 
 

  $  

 
 

  15  

 
 
 
 
 
 
 
 

   Revenue   

 
 
 

  $  

 
 

  174  

 
 
 
 

  $  

 
 

  206  

 
 
 

   Adjusted operating loss margin % (1)   

 
 
 

  (13%)  

 
 
 
 

  (1%)  

 
 
 

   Adjusted EBITDA margin % (2)   

 
 
 

  (3%)  

 
 
 
 

  7%  

 
 
 
 

  ______________________________

 
 
    
 

   (1)  

 
 

  Adjusted operating loss margin % is calculated by dividing adjusted operating loss by revenue  

 
 

   (2)  

 
 

  Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by revenue  

 
 
 

 

 
 
 

 Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/blackberry-reports-first-quarter-fiscal-year-2022-results-301319835.html  

 

SOURCE BlackBerry Limited

 
 

News Provided by PR Newswire via QuoteMedia

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BlackBerry Limited (NYSE: BB; TSX: BB) and Solutions Granted today announced an extended partnership, naming the leading cybersecurity services provider a Master Managed Security Services Provider (MSSP), enabling it to better scale and meet the growing demand for cybersecurity services among small and medium-sized businesses (SMBs).

 
 

  BlackBerry Logo Black (PRNewsfoto/Blackberry Limited) 

 

"Solutions Granted has been honored as BlackBerry MSSP Partner of the Year for North America for five consecutive years and we're excited to take our partnership to the next level by crowning them as our top Master MSSP," said Adam Enterkin , Chief Revenue Officer, Americas, BlackBerry Cybersecurity. "BlackBerry is dedicated to increasing its focus on MSSP partners to ensure they're set up for success. Endpoints are proliferating, and so are the cyberattacks against them. Our extended partnership with Solutions Granted will help hundreds of small and mid-size businesses continuously adapt to an ever-changing threat landscape."

 

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  About BlackBerry  

 

 BlackBerry (NYSE: BB; TSX: BB) provides intelligent security software and services to enterprises and governments around the world.  The company secures more than 500M endpoints including over 215M vehicles.  Based in Waterloo, Ontario , the company leverages AI and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy solutions, and is a leader in the areas of endpoint management, endpoint security, encryption, and embedded systems.  BlackBerry's vision is clear - to secure a connected future you can trust.

 

 BlackBerry. Intelligent Security. Everywhere.

 

For more information, visit BlackBerry.com and follow @BlackBerry.

 

  Trademarks, including but not limited to BlackBerry and EMBLEM Design are the trademarks or registered trademarks of BlackBerry Limited, and the exclusive rights to such trademarks are expressly reserved.  All other trademarks are the property of their respective owners.  BlackBerry is not responsible for any third-party products or services.  

 

  About Solutions Granted Inc.  

 

Solutions Granted is a Master Managed Security Services Provider (Master MSSP). They offer cybersecurity solutions to North American MSPs and MSSPs and are committed to delivering solutions without requiring minimums, commitments, or long-term contracts. They proudly offer many security layers as well as a 24x7 U.S.-based Security Operations Center (SOC). Over the past several years, Solutions Granted has emerged as a clear leader in the channel, by winning countless awards including the CRN Security 100 list, Top 100 MSSP List, Top Global MSSP List, and BlackBerry MSSP Partner of the Year. Learn more at https://www.SolutionsGranted.com  

 

  Media Contacts:  

 

 BlackBerry Media Relations

 

+1 (519) 597-7273

 

  mediarelations@BlackBerry.com  

 
 
 

 Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/blackberry-extends-partnership-with-leading-managed-security-services-provider-mssp-to-ensure-smbs-are-set-up-for-cyber-success-301803800.html  

 

SOURCE BlackBerry Limited

 
 

News Provided by PR Newswire via QuoteMedia

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