BlackBerry Reports Loss but beats EPS and Revenue Expectations

BlackBerry on Thursday reported a loss of $23 million in its fiscal second quarter but beat both Revenue And EPS Expectations. The company says the loss amounted to four cents per diluted share for the quarter ended Aug. 31. The result compared with a loss of US$44 million or 10 cents per diluted share a year earlier.

Earnings, adjusted for amortization costs and non-recurring costs, were 11 cents per share.

Revenue was $259 million, up 6.1% from the comparable quarter a year ago. Adjusted revenue was $266 million. Revenue was more than Wall Street expected.

Second Quarter Fiscal 2021 Financial Highlights

Total company non-GAAP revenue for the second quarter of fiscal 2021 was $266 million. Total company GAAP revenue for the second quarter of fiscal 2021 was $259 million.
Recurring non-GAAP software product revenue continues to be approximately 90%.
Non-GAAP gross margin was 78% and GAAP gross margin was 77%.
Non-GAAP operating earnings were $63 million. GAAP operating loss was $22 million.
Non-GAAP earnings per share was $0.11 (basic and diluted). GAAP net loss per share was $0.04 (basic and diluted).
Total cash, cash equivalents, short-term and long-term investments were $977 million.
Net cash generated from operating activities was $31 million.
Following quarter end successfully redeemed existing $605 million of convertible debentures and issued $365 million of new convertible debentures – reducing level of debt by $240 million and saving $16 million of interest expense on an annualized basis.

“We are pleased to report sequential and year-over-year revenue growth this quarter, exceeding expectations, despite the ongoing challenges from COVID-19,” said John Chen, Executive Chairman & CEO, BlackBerry.
“Continued demand for our secure, ‘Work from Anywhere’, solutions remains a major driver for our BlackBerry Spark business, which performed well this quarter. Some signs of recovery in auto production point to sequential revenue growth and a return to a normal run rate for QNX by early next year. Continued QNX design wins and significant cybersecurity partnerships position the business strongly for the future. We are also seeing positive signs from our focus on the key components of our go-to-market strategy, including: strong channel partnerships, marketing, customer success and investing in new talent for our sales force.”

Conference Call and Webcast

A conference call and live webcast will be held today beginning at 8:00 a.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 11 a.m. ET by dialling +1 (800) 585-8367 and entering Conference ID #1797999 and at the link above.