BlackBerry Reports Second Quarter Fiscal Year 2022 Results

 
 

   Revenue exceeds expectations and Company adds deep cybersecurity industry experience to drive growth   

 

  - Total company revenue of $175 million .  

 

  - IoT revenue of $40 million .  

 

  - Cyber Security revenue of $120 million .  

 

  - Licensing & Other revenue of $15 million .  

 

  - Positive operating cash flow of $12 million .  

 

  - Non-GAAP loss per basic and diluted share of $0.06 ; GAAP loss per basic and diluted share of $0.25 . A non-cash accounting adjustment to the fair value of the convertible debentures, as a result of market and trading conditions, accounts for approximately $0.12 of GAAP loss per share.  

 

WATERLOO, ON, Sept. 22, 2021 /PRNewswire/ -- BlackBerry Limited (NYSE: BB; TSX: BB) today reported financial results for the three months ended August 31, 2021 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

 
 

  BlackBerry Logo Black (PRNewsfoto/Blackberry Limited) 

 
 

  "Revenue for all businesses beat expectations this quarter.  The Cyber Security business unit delivered robust sequential billings and revenue growth and the IoT business unit performed well in the face of global chip shortage pressures," said John Chen , Executive Chairman & CEO, BlackBerry. "We are already seeing benefits from establishing the two key business units and are delighted to appoint John Giamatteo as President of Cyber Security.  Giamatteo, who was previously President and Chief Revenue Officer at McAfee, adds leading industry expertise. In IoT, design activity for our QNX products remains very strong, demonstrating both our industry leadership position and secular trends, such as ECU consolidation. In Cyber Security we received strong third-party validation of the effectiveness of our AI-driven, prevention-first suite of products, illustrating progress made with recent product launches."  

 

   Second Quarter Fiscal 2022 Financial Highlights   

 
  • Total company revenue for the second quarter of fiscal 2022 was $175 million .
  •  
  • Total company non-GAAP gross margin was 65% and GAAP gross margin was 64%.
  •  
  • IoT revenue for the second quarter of fiscal 2022 was $40 million , with gross margin of 83% and ARR of $89 million .
  •  
  • Cyber Security revenue for the second quarter of fiscal 2022 was $120 million , with gross margin of 59% and ARR of $364 million .
  •  
  • Licensing and Other revenue for the second quarter of fiscal 2022 was $15 million as negotiations for the sale of a portion of the patent portfolio continue. Gross margin was 60%.
  •  
  • Non-GAAP operating loss was $30 million . GAAP operating loss was $141 million , primarily due to a non-cash accounting adjustment to the fair value of the convertible debentures, resulting from market and trading conditions, of $67 million .
  •  
  • Non-GAAP loss per share was $0.06 (basic and diluted). GAAP loss per share was $0.25 (basic and diluted).
  •  
  • Total cash, cash equivalents, short-term and long-term investments were $772 million .
  •  
  • Net cash generated from operating activities was $12 million .
  •  

   Business Highlights & Strategic Announcements   

 
  • BlackBerry has design wins with 24 of the world's leading 25 Electric Vehicle (EV) automakers. This has increased from 23 of the top 25 last quarter following an EV win with Daimler.
  •  
  • BlackBerry IVY™ to deliver highly secure vehicle-based payments, leveraging direct access to vehicle sensor data and edge processing to create a "digital fingerprint". Delivered through a partnership with Car IQ.
  •  
  • Nobo Technologies selects BlackBerry QNX® Neutrino® as foundation for new Digital Cockpit Controller for Great Wall Motors' Haval G6S SUV. Great Wall Motors is China's largest producer of SUV vehicles.
  •  
  • sTraffic, Korea's leading solution developer for transportation infrastructure systems, selects QNX® OS for Safety as the foundation for their train traffic management system that includes unmanned train operations.
  •  
  • BlackBerry launches BlackBerry® Jarvis 2.0® composition analysis tool. Delivered as a more user-friendly SaaS offering, Jarvis 2.0 empowers OEMs to validate and ensure the quality of their multi-tiered software bill of materials.
  •  
  • BlackBerry awarded highest AAA rating by SE Labs in breach test of BlackBerry® Protect (EPP) and BlackBerry® Optics (EDR). The breach test adopted a range of real-world hacker tactics and BlackBerry's AI-driven products delivered complete prevention and detection with zero false positives.
  •  
  • BlackBerry® UEM integrates with Microsoft 365, delivering BlackBerry's industry-leading security to Microsoft's productivity products.
  •  
  • BlackBerry® AtHoc® critical event management platform used as foundation for autonomous flood risk and clean water monitoring solution.
  •  
  • BlackBerry updates SecuSUITE capabilities to protect group phone calls and messages for governments and businesses from high risk eavesdropping.
  •  

   Appointment of New Cyber Security Business Unit President
 
BlackBerry has appointed John Giamatteo as President of the Cyber Security business unit.  With this strategic hire the company adds significant industry experience. Giamatteo will join the company on October 4th and report to Executive Chairman and CEO John Chen .  He will be responsible for business unit strategy, engineering, and go-to-market.

 

Giamatteo brings to BlackBerry over 30 years of experience with technology companies. Most recently he served as President and Chief Revenue Officer of McAfee, where he was responsible for sales, marketing, and customer success.  During his time with McAfee, he delivered strong double-digit growth across its Enterprise, SMB and Consumer businesses as well as significant margin expansion across the portfolio.  Prior to that he served as Chief Operating Officer at AVG Technologies, a leading provider of Internet and mobile security. Giamatteo also held leadership positions with Solera Holdings, RealNetworks, Inc. and Nortel Network Corporation.

 

"I'm excited to be joining BlackBerry and to be leading the Cyber Security business unit.  Never has the threat of cyberattacks been higher, nor more in the minds of management," said Giamatteo. "BlackBerry's AI-driven, prevention-first technology is well placed to scale to meet the constantly evolving cybersecurity needs of companies everywhere.  I'm very positive about the opportunities that we have as a company."

 

  Tom Eacobacci , BlackBerry's President and COO, has decided to pursue other opportunities and will leave the Company on October 29th.  BlackBerry thanks Tom for his hard work and contributions in his time at the Company.

 

   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 #6149337 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 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   

 
 
 
 

   Three Months Ended   

 
 
 

   Six Months Ended   

 
 
 

   August 31,
2021
 
 

 
 
 

   May 31,
2021
 
 

 
 
 

   August 31,
2020
 
 

 
 
 

   August 31,
2021
 
 

 
 
 

   August 31,
2020
 
 

 
 

   Revenue   

 
 

   $   

 
 

   175   

 
 
 
 

  $  

 
 

  174  

 
 
 
 

  $  

 
 

  259  

 
 
 
 

   $   

 
 

   349   

 
 
 
 

  $  

 
 

  465  

 
 
 

   Cost of sales   

 
 

   63   

 
 
 
 

  60  

 
 
 
 

  60  

 
 
 
 

   123   

 
 
 
 

  123  

 
 
 

   Gross margin   

 
 

   112   

 
 
 
 

  114  

 
 
 
 

  199  

 
 
 
 

   226   

 
 
 
 

  342  

 
 
 

   Gross margin %   

 
 

   64.0   

 
 

   %   

 
 
 

  65.5  

 
 

  %  

 
 
 

  76.8  

 
 

  %  

 
 
 

   64.8   

 
 

   %   

 
 
 

  73.5  

 
 

  %  

 
 

   Operating expenses   

 
 
 
 
 
 
 
 
 
 
 

  Research and development  

 
 

   58   

 
 
 
 

  57  

 
 
 
 

  57  

 
 
 
 

   115   

 
 
 
 

  114  

 
 
 

  Selling, marketing and administration  

 
 

   83   

 
 
 
 

  73  

 
 
 
 

  79  

 
 
 
 

   156   

 
 
 
 

  169  

 
 
 

  Amortization  

 
 

   45   

 
 
 
 

  46  

 
 
 
 

  46  

 
 
 
 

   91   

 
 
 
 

  92  

 
 
 

  Impairment of goodwill  

 
 

    

 
 
 
 

  

 
 
 
 

  

 
 
 
 

    

 
 
 
 

  594  

 
 
 

  Impairment of long-lived assets  

 
 

    

 
 
 
 

  

 
 
 
 

  21  

 
 
 
 

    

 
 
 
 

  21  

 
 
 

  Debentures fair value adjustment  

 
 

   67   

 
 
 
 

  (4)  

 
 
 
 

  18  

 
 
 
 

   63   

 
 
 
 

  19  

 
 
 
 

   253   

 
 
 
 

  172  

 
 
 
 

  221  

 
 
 
 

   425   

 
 
 
 

  1,009  

 
 
 

   Operating loss   

 
 

   (141)   

 
 
 
 

  (58)  

 
 
 
 

  (22)  

 
 
 
 

   (199)   

 
 
 
 

  (667)  

 
 
 

  Investment loss, net  

 
 

   (1)   

 
 
 
 

  (2)  

 
 
 
 

  (5)  

 
 
 
 

   (3)   

 
 
 
 

  (5)  

 
 
 

   Loss before income taxes   

 
 

   (142)   

 
 
 
 

  (60)  

 
 
 
 

  (27)  

 
 
 
 

   (202)   

 
 
 
 

  (672)  

 
 
 

   Provision for (recovery of) income taxes   

 
 

   2   

 
 
 
 

  2  

 
 
 
 

  (4)  

 
 
 
 

   4   

 
 
 
 

  (13)  

 
 
 

   Net loss   

 
 

   $   

 
 

   (144)   

 
 
 
 

  $  

 
 

  (62)  

 
 
 
 

  $  

 
 

  (23)  

 
 
 
 

   $   

 
 

   (206)   

 
 
 
 

  $  

 
 

  (659)  

 
 
 

   Loss per share   

 
 
 
 
 
 
 
 
 
 
 

  Basic  

 
 

   $   

 
 

   (0.25)   

 
 
 
 

  $  

 
 

  (0.11)  

 
 
 
 

  $  

 
 

  (0.04)  

 
 
 
 

   $   

 
 

   (0.36)   

 
 
 
 

  $  

 
 

  (1.18)  

 
 
 

  Diluted  

 
 

   $   

 
 

   (0.25)   

 
 
 
 

  $  

 
 

  (0.11)  

 
 
 
 

  $  

 
 

  (0.04)  

 
 
 
 

   $   

 
 

   (0.36)   

 
 
 
 

  $  

 
 

  (1.18)  

 
 
 
 
 
 
 
 
 
 
 
 
 

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

 
 
 
 
 
 
 
 
 
 
 

  Basic  

 
 

   568,082   

 
 
 
 

  567,358  

 
 
 
 

  558,882  

 
 
 
 

   567,724   

 
 
 
 

  558,365  

 
 
 

  Diluted  

 
 

   568,082   

 
 
 
 

  567,358  

 
 
 
 

  558,882  

 
 
 
 

   567,724   

 
 
 
 

  558,365  

 
 
 

  Total common shares outstanding (000s)  

 
 

   566,995   

 
 
 
 

  566,248  

 
 
 
 

  556,468  

 
 
 
 

   566,995   

 
 
 
 

  556,468  

 
 
 
 

 

 
 
                                                                                                                                                                                                                                                               
 

   BlackBerry Limited   

 

  Incorporated under the Laws of Ontario  

 

  (United States dollars, in millions) (unaudited)  

 
 
 

   Consolidated Balance Sheets   

 
 
 
 
 

   As at   

 
 
 
 

   August 31, 2021   

 
 
 

   February 28, 2021   

 
 

   Assets   

 
 
 
 
 
 

   Current   

 
 
 
 
 
 

  Cash and cash equivalents  

 
 
 

   $   

 
 

   291   

 
 
 
 

  $  

 
 

  214  

 
 
 

  Short-term investments  

 
 
 

   416   

 
 
 
 

  525  

 
 
 

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

 
 
 

   121   

 
 
 
 

  182  

 
 
 

  Other receivables  

 
 
 

   23   

 
 
 
 

  25  

 
 
 

  Income taxes receivable  

 
 
 

   9   

 
 
 
 

  10  

 
 
 

  Other current assets  

 
 
 

   50   

 
 
 
 

  50  

 
 
 
 
 

   910   

 
 
 
 

  1,006  

 
 
 

   Restricted cash equivalents and restricted short-term investments   

 
 
 

   27   

 
 
 
 

  28  

 
 
 

   Long-term investments   

 
 
 

   38   

 
 
 
 

  37  

 
 
 

   Other long-term assets   

 
 
 

   13   

 
 
 
 

  16  

 
 
 

   Operating lease right-of-use assets, net   

 
 
 

   57   

 
 
 
 

  63  

 
 
 

   Property, plant and equipment, net   

 
 
 

   44   

 
 
 
 

  48  

 
 
 

   Goodwill   

 
 
 

   848   

 
 
 
 

  849  

 
 
 

   Intangible assets, net   

 
 
 

   695   

 
 
 
 

  771  

 
 
 
 
 

   $   

 
 

   2,632   

 
 
 
 

  $  

 
 

  2,818  

 
 
 

   Liabilities   

 
 
 
 
 
 

   Current   

 
 
 
 
 
 

  Accounts payable  

 
 
 

   $   

 
 

   22   

 
 
 
 

  $  

 
 

  20  

 
 
 

  Accrued liabilities  

 
 
 

   174   

 
 
 
 

  178  

 
 
 

  Income taxes payable  

 
 
 

   9   

 
 
 
 

  6  

 
 
 

  Deferred revenue, current  

 
 
 

   198   

 
 
 
 

  225  

 
 
 
 
 

   403   

 
 
 
 

  429  

 
 
 

   Deferred revenue, non-current   

 
 
 

   46   

 
 
 
 

  69  

 
 
 

   Operating lease liabilities   

 
 
 

   79   

 
 
 
 

  90  

 
 
 

   Other long-term liabilities   

 
 
 

   4   

 
 
 
 

  6  

 
 
 

   Long-term debentures   

 
 
 

   782   

 
 
 
 

  720  

 
 
 
 
 

   1,314   

 
 
 
 

  1,314  

 
 
 

   Shareholders' equity   

 
 
 
 
 
 

   Capital stock and additional paid-in capital   

 
 
 

   2,845   

 
 
 
 

  2,823  

 
 
 

   Deficit   

 
 
 

   (1,512)   

 
 
 
 

  (1,306)  

 
 
 

   Accumulated other comprehensive loss   

 
 
 

   (15)   

 
 
 
 

  (13)  

 
 
 
 
 

   1,318   

 
 
 
 

  1,504  

 
 
 
 
 

   $   

 
 

   2,632   

 
 
 
 

  $  

 
 

  2,818  

 
 
 
 

 

 
 
                                                                                                                                                                                                                                                                    
 

   BlackBerry Limited   

 

  Incorporated under the Laws of Ontario  

 

  (United States dollars, in millions) (unaudited)  

 
 
 

   Consolidated Statements of Cash Flows   

 
 
 
 

   Six Months Ended   

 
 
 

   August 31, 2021   

 
 
 

   August 31, 2020   

 
 

   Cash flows from operating activities   

 
 
 
 
 

  Net loss  

 
 

   $   

 
 

   (206)   

 
 
 
 

  $  

 
 

  (659)  

 
 
 

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

 
 
 
 
 

  Amortization  

 
 

   97   

 
 
 
 

  100  

 
 
 

  Stock-based compensation  

 
 

   17   

 
 
 
 

  22  

 
 
 

  Impairment of goodwill  

 
 

    

 
 
 
 

  594  

 
 
 

  Impairment of long-lived assets  

 
 

    

 
 
 
 

  21  

 
 
 

  Debentures fair value adjustment  

 
 

   63   

 
 
 
 

  19  

 
 
 

  Operating leases  

 
 

   (8)   

 
 
 
 

  (2)  

 
 
 

  Other  

 
 

   (2)   

 
 
 
 

  (3)  

 
 
 

  Net changes in working capital items  

 
 
 
 
 

  Accounts receivable, net of allowance  

 
 

   61   

 
 
 
 

  (29)  

 
 
 

  Other receivables  

 
 

   2   

 
 
 
 

  (11)  

 
 
 

  Income taxes receivable  

 
 

   1   

 
 
 
 

  (3)  

 
 
 

  Other assets  

 
 

   4   

 
 
 
 

  43  

 
 
 

  Accounts payable  

 
 

   2   

 
 
 
 

  (2)  

 
 
 

  Accrued liabilities  

 
 

   (2)   

 
 
 
 

  (21)  

 
 
 

  Income taxes payable  

 
 

   3   

 
 
 
 

  (12)  

 
 
 

  Deferred revenue  

 
 

   (50)   

 
 
 
 

  (57)  

 
 
 

   Net cash used in operating activities   

 
 

   (18)   

 
 
 
 

  

 
 
 

   Cash flows from investing activities   

 
 
 
 
 

  Acquisition of long-term investments  

 
 

   (1)   

 
 
 
 

  (1)  

 
 
 

  Acquisition of property, plant and equipment  

 
 

   (4)   

 
 
 
 

  (3)  

 
 
 

  Acquisition of intangible assets  

 
 

   (14)   

 
 
 
 

  (16)  

 
 
 

  Acquisition of short-term investments  

 
 

   (429)   

 
 
 
 

  (320)  

 
 
 

  Proceeds on sale or maturity of restricted short-term investments  

 
 

   24   

 
 
 
 

  

 
 
 

  Proceeds on sale or maturity of short-term investments  

 
 

   537   

 
 
 
 

  794  

 
 
 

   Net cash provided by investing activities   

 
 

   113   

 
 
 
 

  454  

 
 
 

   Cash flows from financing activities   

 
 
 
 
 

  Issuance of common shares  

 
 

   5   

 
 
 
 

  6  

 
 
 

  Payment of finance lease liability  

 
 

    

 
 
 
 

  (1)  

 
 
 

   Net cash provided by financing activities   

 
 

   5   

 
 
 
 

  5  

 
 
 

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

 
 

    

 
 
 
 

  1  

 
 
 

   Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents during the
period
 
 

 
 

   100   

 
 
 
 

  460  

 
 
 

   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   

 
 

   $   

 
 

   318   

 
 
 
 

  $  

 
 

  886  

 
 
 
 
 

   As at   

 
 

   August 31, 2021   

 
 
 

   February 28, 2021   

 
 

  Cash and cash equivalents  

 
 

   $   

 
 

   291   

 
 
 
 

  $  

 
 

  214  

 
 
 

  Restricted cash equivalents and restricted short-term investments  

 
 

   27   

 
 
 
 

  28  

 
 
 

  Short-term investments  

 
 

   416   

 
 
 
 

  525  

 
 
 

  Long-term investments  

 
 

   38   

 
 
 
 

  37  

 
 
 
 

   $   

 
 

   772   

 
 
 
 

  $  

 
 

  804  

 
 
 
 

 

 

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

 

The following table shows information by operating segment for the three months ended August 31, 2021 and August 31, 2020 .  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.

 
 
                                                                                                                                                                          
 
 

  For the Three Months Ended  

 

   (in millions) (unaudited)   

 
 
 

  Cyber Security  

 
 
 

  IoT  

 
 
 

  Licensing and Other  

 
 
 

  Segment Totals  

 
 
 

  August 31,
2021
 

 
 
 

  August 31,
2020
 

 
 
 

  August 31,
2021
 

 
 
 

  August 31,
2020
 

 
 
 

  August 31,
2021
 

 
 
 

  August 31,
2020
 

 
 
 

  August 31,
2021
 

 
 
 

  August 31,
2020
 

 
 

  Segment revenue  

 
 

  $  

 
 

  120  

 
 
 
 

  $  

 
 

  120  

 
 
 
 

  $  

 
 

  40  

 
 
 
 

  $  

 
 

  31  

 
 
 
 

  $  

 
 

  15  

 
 
 
 

  $  

 
 

  108  

 
 
 
 

  $  

 
 

  175  

 
 
 
 

  $  

 
 

  259  

 
 
 

  Segment cost of sales  

 
 

  49  

 
 
 
 

  46  

 
 
 
 

  7  

 
 
 
 

  6  

 
 
 
 

  6  

 
 
 
 

  7  

 
 
 
 

  62  

 
 
 
 

  59  

 
 
 

  Segment gross margin  

 
 

  $  

 
 

  71  

 
 
 
 

  $  

 
 

  74  

 
 
 
 

  $  

 
 

  33  

 
 
 
 

  $  

 
 

  25  

 
 
 
 

  $  

 
 

  9  

 
 
 
 

  $  

 
 

  101  

 
 
 
 

  $  

 
 

  113  

 
 
 
 

  $  

 
 

  200  

 
 
 

  Segment gross margin %  

 
 

  59  

 
 

  %  

 
 
 

  62  

 
 

  %  

 
 
 

  83  

 
 

  %  

 
 
 

  81  

 
 

  %  

 
 
 

  60  

 
 

  %  

 
 
 

  94  

 
 

  %  

 
 
 

  65  

 
 

  %  

 
 
 

  77  

 
 

  %  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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

 
 
                                                                                                                          
 
 

  For the Three Months Ended August 31, 2021  

 
 
 

   (in millions) (unaudited)   

 
 
 

  Cyber Security  

 
 
 

  IoT  

 
 

  Licensing and
Other
 

 
 

   Segment Totals   

 
 
 

  Reconciling
Items
 

 
 
 

   Consolidated
U.S. GAAP
 
 

 
 

  Revenue  

 
 

  $  

 
 

  120  

 
 
 
 

  $  

 
 

  40  

 
 
 
 

  $  

 
 

  15  

 
 
 
 

  $  

 
 

  175  

 
 
 
 

  $  

 
 

  

 
 
 
 

  $  

 
 

  175  

 
 
 

  Cost of sales (1)  

 
 

  49  

 
 
 
 

  7  

 
 
 
 

  6  

 
 
 
 

  62  

 
 
 
 

  1  

 
 
 
 

  63  

 
 
 

  Gross margin  

 
 

  $  

 
 

  71  

 
 
 
 

  $  

 
 

  33  

 
 
 
 

  $  

 
 

  9  

 
 
 
 

  $  

 
 

  113  

 
 
 
 

  $  

 
 

  (1)  

 
 
 
 

  $  

 
 

  112  

 
 
 

  Operating expenses  

 
 
 
 
 
 
 
 
 
 

  253  

 
 
 
 

  253  

 
 
 

  Investment loss, net  

 
 
 
 
 
 
 
 
 
 

  1  

 
 
 
 

  1  

 
 
 

  Loss before income taxes  

 
 
 
 
 
 
 
 
 
 
 
 

  $  

 
 

  (142)  

 
 
 
 
 
   
 
 

   ______________________________  

 
 

   (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 August 31, 2021.  

 
 
 

 

 

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

 

 

 
 
                                                                                                                          
 
 

  For the Three Months Ended August 31, 2020  

 
 
 

   (in millions) (unaudited)   

 
 
 

  Cyber Security  

 
 
 

  IoT  

 
 

  Licensing and
Other
 

 
 

   Segment Totals   

 
 
 

  Reconciling
Items
 

 
 
 

   Consolidated
U.S. GAAP
 
 

 
 

  Revenue  

 
 

  $  

 
 

  120  

 
 
 
 

  $  

 
 

  31  

 
 
 
 

  $  

 
 

  108  

 
 
 
 

  $  

 
 

  259  

 
 
 
 

  $  

 
 

  

 
 
 
 

  $  

 
 

  259  

 
 
 

  Cost of sales (1)  

 
 

  46  

 
 
 
 

  6  

 
 
 
 

  7  

 
 
 
 

  59  

 
 
 
 

  1  

 
 
 
 

  60  

 
 
 

  Gross margin  

 
 

  $  

 
 

  74  

 
 
 
 

  $  

 
 

  25  

 
 
 
 

  $  

 
 

  101  

 
 
 
 

  $  

 
 

  200  

 
 
 
 

  $  

 
 

  (1)  

 
 
 
 

  $  

 
 

  199  

 
 
 

  Operating expenses  

 
 
 
 
 
 
 
 
 
 

  221  

 
 
 
 

  221  

 
 
 

  Investment loss, net  

 
 
 
 
 
 
 
 
 
 

  5  

 
 
 
 

  5  

 
 
 

  Loss before income taxes  

 
 
 
 
 
 
 
 
 
 
 
 

  $  

 
 

  (27)  

 
 
 
 
 
   
 
 

   ______________________________  

 
 

   (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 August 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 and six months ended August 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 income (loss), adjusted EBITDA, adjusted operating income (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 August 31, 2021 and August 31, 2020    

 

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

 
 
                                                        
 

   For the Three Months Ended (in millions)   

 
 
 

   August 31, 2021   

 
 
 

   August 31, 2020   

 
 

   Gross margin   

 
 
 

  $  

 
 

  112  

 
 
 
 

  $  

 
 

  199  

 
 
 

  Stock compensation expense  

 
 
 

  1  

 
 
 
 

  1  

 
 
 

   Adjusted gross margin   

 
 
 

  $  

 
 

  113  

 
 
 
 

  $  

 
 

  200  

 
 
 
 
 
 
 
 

   Gross margin %   

 
 
 

  64.0  

 
 

  %  

 
 
 

  76.8  

 
 

  %  

 
 

  Stock compensation expense  

 
 
 

  0.6  

 
 

  %  

 
 
 

  0.4  

 
 

  %  

 
 

   Adjusted gross margin %   

 
 
 

  64.6  

 
 

  %  

 
 
 

  77.2  

 
 

  %  

 
 
 

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

 
 
                                                          
 

   For the Three Months Ended (in millions)   

 
 
 

   August 31, 2021   

 
 
 

   August 31, 2020   

 
 

   Operating expense   

 
 
 

  $  

 
 

  253  

 
 
 
 

  $  

 
 

  221  

 
 
 

  Restructuring charges  

 
 
 

  

 
 
 
 

  1  

 
 
 

  Stock compensation expense  

 
 
 

  11  

 
 
 
 

  8  

 
 
 

  Debentures fair value adjustment  

 
 
 

  67  

 
 
 
 

  18  

 
 
 

  Acquired intangibles amortization  

 
 
 

  32  

 
 
 
 

  32  

 
 
 

  LLA impairment charge  

 
 
 

  

 
 
 
 

  21  

 
 
 

   Adjusted operating expense   

 
 
 

  $  

 
 

  143  

 
 
 
 

  $  

 
 

  141  

 
 
 
 

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

 
 
                                                                                               
 

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

 
 
 

   August 31, 2021   

 
 
 

   August 31, 2020   

 
 
 
 
 
 

   Basic loss
per share
 
 

 
 
 
 
 

   Basic
earnings
(loss) per
share
 
 

 
 

   Net loss   

 
 
 

  $  

 
 

  (144)  

 
 
 
 

  $(0.25)  

 
 
 

  $  

 
 

  (23)  

 
 
 
 

  $(0.04)  

 
 

  Restructuring charges  

 
 
 

  

 
 
 
 
 
 

  1  

 
 
 
 
 

  Stock compensation expense  

 
 
 

  12  

 
 
 
 
 
 

  9  

 
 
 
 
 

  Debentures fair value adjustment  

 
 
 

  67  

 
 
 
 
 
 

  18  

 
 
 
 
 

  Acquired intangibles amortization  

 
 
 

  32  

 
 
 
 
 
 

  32  

 
 
 
 
 

  LLA impairment charge  

 
 
 

  

 
 
 
 
 
 

  21  

 
 
 
 
 

   Adjusted net income (loss)   

 
 
 

  $  

 
 

  (33)  

 
 
 
 

  $(0.06)  

 
 
 

  $  

 
 

  58  

 
 
 
 

  $0.10  

 
 
 

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

 
 
                                                                                                 
 

   For the Three Months Ended (in millions)   

 
 
 

   August 31, 2021   

 
 
 

   August 31, 2020   

 
 

   Research and development   

 
 
 

  $  

 
 

  58  

 
 
 
 

  $  

 
 

  57  

 
 
 

  Stock compensation expense  

 
 
 

  2  

 
 
 
 

  2  

 
 
 

   Adjusted research and development   

 
 
 

  $  

 
 

  56  

 
 
 
 

  $  

 
 

  55  

 
 
 
 
 
 
 
 

   Selling, marketing and administration   

 
 
 

  $  

 
 

  83  

 
 
 
 

  $  

 
 

  79  

 
 
 

  Restructuring charges  

 
 
 

  

 
 
 
 

  1  

 
 
 

  Stock compensation expense  

 
 
 

  9  

 
 
 
 

  6  

 
 
 

   Adjusted selling, marketing and administration   

 
 
 

  $  

 
 

  74  

 
 
 
 

  $  

 
 

  72  

 
 
 
 
 
 
 
 

   Amortization   

 
 
 

  $  

 
 

  45  

 
 
 
 

  $  

 
 

  46  

 
 
 

  Acquired intangibles amortization  

 
 
 

  32  

 
 
 
 

  32  

 
 
 

   Adjusted amortization   

 
 
 

  $  

 
 

  13  

 
 
 
 

  $  

 
 

  14  

 
 
 
 

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

 

  
 

 
 
                                                                                                                       
 

   For the Three Months Ended (in millions)   

 
 
 

   August 31, 2021   

 
 
 

   August 31, 2020   

 
 

   Operating loss   

 
 
 

  $  

 
 

  (141)  

 
 
 
 

  $  

 
 

  (22)  

 
 
 

  Non-GAAP adjustments to operating loss  

 
 
 
 
 
 

  Restructuring charges  

 
 
 

  

 
 
 
 

  1  

 
 
 

  Stock compensation expense  

 
 
 

  12  

 
 
 
 

  9  

 
 
 

  Debentures fair value adjustment  

 
 
 

  67  

 
 
 
 

  18  

 
 
 

  Acquired intangibles amortization  

 
 
 

  32  

 
 
 
 

  32  

 
 
 

  LLA impairment charge  

 
 
 

  

 
 
 
 

  21  

 
 
 

  Total non-GAAP adjustments to operating loss  

 
 
 

  111  

 
 
 
 

  81  

 
 
 

   Adjusted operating income (loss)   

 
 
 

  (30)  

 
 
 
 

  59  

 
 
 

  Amortization  

 
 
 

  48  

 
 
 
 

  50  

 
 
 

  Acquired intangibles amortization  

 
 
 

  (32)  

 
 
 
 

  (32)  

 
 
 

   Adjusted EBITDA   

 
 
 

  $  

 
 

  (14)  

 
 
 
 

  $  

 
 

  77  

 
 
 
 
 
 
 
 

   Revenue   

 
 
 

  $  

 
 

  175  

 
 
 
 

  $  

 
 

  259  

 
 
 

   Adjusted operating income (loss) margin % (1)   

 
 
 

  (17)  

 
 

  %  

 
 
 

  23  

 
 

  %  

 
 

   Adjusted EBITDA margin % (2)   

 
 
 

  (8)  

 
 

  %  

 
 
 

  30  

 
 

  %  

 
 
 
 
    
 
 

   ______________________________  

 
 

   (1) Adjusted operating income (loss) margin % is calculated by dividing adjusted operating income (loss) by revenue  

 
 

   (2) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by revenue  

 
 
 

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

 

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

 
 
                                                                                                                         
 

   For the Six Months Ended (in millions)   

 
 
 

   August 31, 2021   

 
 
 

   August 31, 2020   

 
 

   Gross margin   

 
 
 

  $  

 
 

  226  

 
 
 
 

  $  

 
 

  342  

 
 
 

  Stock compensation expense  

 
 
 

  2  

 
 
 
 

  3  

 
 
 

   Adjusted gross margin   

 
 
 

  $  

 
 

  228  

 
 
 
 

  $  

 
 

  345  

 
 
 
 
 
 
 
 

   Gross margin %   

 
 
 

  64.8  

 
 

  %  

 
 
 

  73.5  

 
 

  %  

 
 

  Stock compensation expense  

 
 
 

  0.5  

 
 

  %  

 
 
 

  0.7  

 
 

  %  

 
 

   Adjusted gross margin %   

 
 
 

  65.3  

 
 

  %  

 
 
 

  74.2  

 
 

  %  

 
 
 
 
 
 
 

   Operating expense   

 
 
 

  $  

 
 

  425  

 
 
 
 

  $  

 
 

  1,009  

 
 
 

  Restructuring charges  

 
 
 

  

 
 
 
 

  2  

 
 
 

  Stock compensation expense  

 
 
 

  17  

 
 
 
 

  20  

 
 
 

  Debentures fair value adjustment  

 
 
 

  63  

 
 
 
 

  19  

 
 
 

  Acquired intangibles amortization  

 
 
 

  64  

 
 
 
 

  65  

 
 
 

  Goodwill impairment charge  

 
 
 

  

 
 
 
 

  594  

 
 
 

  LLA impairment charge  

 
 
 

  

 
 
 
 

  21  

 
 
 

   Adjusted operating expense   

 
 
 

  $  

 
 

  281  

 
 
 
 

  $  

 
 

  288  

 
 
 
 

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

 
 
                                                                                                                             
 

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

 
 
 

   August 31, 2021   

 
 
 

   August 31, 2020   

 
 
 
 
 
 

   Basic loss
per share
 
 

 
 
 
 
 

   Basic
earnings
(loss) per
share
 
 

 
 

   Net loss   

 
 
 

  $  

 
 

  (206)  

 
 
 
 

  $  

 
 

  (0.36)  

 
 
 

  $  

 
 

  (659)  

 
 
 
 

  $  

 
 

  (1.18)  

 
 

  Restructuring charges  

 
 
 

  

 
 
 
 
 
 

  2  

 
 
 
 
 

  Stock compensation expense  

 
 
 

  19  

 
 
 
 
 
 

  23  

 
 
 
 
 

  Debentures fair value adjustment  

 
 
 

  63  

 
 
 
 
 
 

  19  

 
 
 
 
 

  Acquired intangibles amortization  

 
 
 

  64  

 
 
 
 
 
 

  65  

 
 
 
 
 

  Goodwill impairment charge  

 
 
 

  

 
 
 
 
 
 

  594  

 
 
 
 
 

  LLA impairment charge  

 
 
 

  

 
 
 
 
 
 

  21  

 
 
 
 
 

   Adjusted net income (loss)   

 
 
 

  $  

 
 

  (60)  

 
 
 
 

  $(0.11)  

 
 
 

  $  

 
 

  65  

 
 
 
 

  $0.12  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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

 
 
                                                                                                 
 

   For the Six Months Ended (in millions)   

 
 
 

   August 31, 2021   

 
 
 

   August 31, 2020   

 
 

   Research and development   

 
 
 

  $  

 
 

  115  

 
 
 
 

  $  

 
 

  114  

 
 
 

  Stock compensation expense  

 
 
 

  4  

 
 
 
 

  5  

 
 
 

   Adjusted research and development   

 
 
 

  $  

 
 

  111  

 
 
 
 

  $  

 
 

  109  

 
 
 
 
 
 
 
 

   Selling, marketing and administration   

 
 
 

  $  

 
 

  156  

 
 
 
 

  $  

 
 

  169  

 
 
 

  Restructuring charges  

 
 
 

  

 
 
 
 

  2  

 
 
 

  Stock compensation expense  

 
 
 

  13  

 
 
 
 

  15  

 
 
 

   Adjusted selling, marketing and administration   

 
 
 

  $  

 
 

  143  

 
 
 
 

  $  

 
 

  152  

 
 
 
 
 
 
 
 

   Amortization   

 
 
 

  $  

 
 

  91  

 
 
 
 

  $  

 
 

  92  

 
 
 

  Acquired intangibles amortization  

 
 
 

  64  

 
 
 
 

  65  

 
 
 

   Adjusted amortization   

 
 
 

  $  

 
 

  27  

 
 
 
 

  $  

 
 

  27  

 
 
 
 

Adjusted operating income (loss), adjusted EBITDA, adjusted operating income (loss) margin percentage and adjusted EBITDA margin percentage for the six months ended August 31, 2021 and August 31, 2020 are reflected in the table below.

 

  
 

 
 
                                                                                                                              
 

   For the Six Months Ended (in millions)   

 
 
 

   August 31, 2021   

 
 
 

   August 31, 2020   

 
 

   Operating loss   

 
 
 

  $  

 
 

  (199)  

 
 
 
 

  $  

 
 

  (667)  

 
 
 

  Non-GAAP adjustments to operating loss  

 
 
 
 
 
 

  Restructuring charges  

 
 
 

  

 
 
 
 

  2  

 
 
 

  Stock compensation expense  

 
 
 

  19  

 
 
 
 

  23  

 
 
 

  Debentures fair value adjustment  

 
 
 

  63  

 
 
 
 

  19  

 
 
 

  Acquired intangibles amortization  

 
 
 

  64  

 
 
 
 

  65  

 
 
 

  Goodwill impairment charge  

 
 
 

  

 
 
 
 

  594  

 
 
 

  LLA impairment charge  

 
 
 

  

 
 
 
 

  21  

 
 
 

  Total non-GAAP adjustments to operating loss  

 
 
 

  146  

 
 
 
 

  724  

 
 
 

   Adjusted operating income (loss)   

 
 
 

  (53)  

 
 
 
 

  57  

 
 
 

  Amortization  

 
 
 

  97  

 
 
 
 

  100  

 
 
 

  Acquired intangibles amortization  

 
 
 

  (64)  

 
 
 
 

  (65)  

 
 
 

   Adjusted EBITDA   

 
 
 

  $  

 
 

  (20)  

 
 
 
 

  $  

 
 

  92  

 
 
 
 
 
 
 
 

   Revenue   

 
 
 

  $  

 
 

  349  

 
 
 
 

  $  

 
 

  465  

 
 
 

   Adjusted operating income (loss) margin % (1)   

 
 
 

  (15)  

 
 

  %  

 
 
 

  12  

 
 

  %  

 
 

   Adjusted EBITDA margin % (2)   

 
 
 

  (6)  

 
 

  %  

 
 
 

  20  

 
 

  %  

 
 
 
 
    
 
 

   ______________________________  

 
 

   (1) Adjusted operating income (loss) margin % is calculated by dividing adjusted operating income (loss) by revenue  

 
 

   (2) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by revenue  

 
 
 

 

 

  Key Metrics  

 

The Company regularly monitors a number of financial and operating metrics, including the following key metrics, in order to measure the Company's current performance and estimate future performance. Readers are cautioned that annual recurring revenue ("ARR"), dollar-based net retention rate ("DBNRR"), and recurring revenue percentage do not have any standardized meaning and are unlikely to be comparable to similarly titled measures reported by other companies.

 
 
                           
 

   For the Three Months Ended (in millions)   

 
 
 

   August 31, 2021   

 
 

   Annual Recurring Revenue   

 
 
 
 

  Cyber Security  

 
 
 

  $  

 
 

  364  

 
 
 

  IoT  

 
 
 

  $  

 
 

  89  

 
 
 

   Dollar-Based Net Retention Rate   

 
 
 
 

  Cyber Security  

 
 
 

  95  

 
 

  %  

 
 

   Recurring Software Product Revenue   

 
 
 

  ~ 80  

 
 

  %  

 
 
 

 

 
 
 

 Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/blackberry-reports-second-quarter-fiscal-year-2022-results-301383205.html  

 

SOURCE BlackBerry Limited

 
 

News Provided by PR Newswire via QuoteMedia

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  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."

 

As a 'Master MSSP', Solutions Granted will be better positioned to help its own partners to deliver Managed Detection and Response (MDR) and other Managed Security Services to their mid-market and SMB clients.  In partnership with BlackBerry and heavily leveraging the Cylance® AI-powered portfolio, Solutions Granted helps thousands of clients secure their environments and prevent attacks. By working with Solutions Granted, MSSPs and managed service providers (MSPs) can offer industry leading managed security, without making the significant investment of building out their own security operations center (SOC).

 

  CylanceENDPOINT™ is among the solutions it helps managed service providers (MSPs) deploy to clients, either as individual managed services or integrated into a SOC-as-a-service offering.

 

"BlackBerry's support for our business model provides the flexibility we need to continue to meet customer demand and provide the best possible product support for their business needs," said Michael E. Crean , Chief Executive Officer, Solutions Granted. "We value the investment BlackBerry is making in our partnership and know this will go a long way in setting up our customers for success."

 

To learn more about BlackBerry MSSP Partners, visit blackberry.com/us/en/partners/mssp-partners .

 

  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

 
 

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