BlackBerry reported its first-quarter results for Q1 2023, beating analysts’ expectations, thanks to its cybersecurity business.
However, the the company says its net loss tripled in the first quarter to US$181 million primarily due to the settlement of a 2013 shareholder class action lawsuit over its BlackBerry 10 smartphones.
The company says it lost 31 cents per diluted share, compared with a loss of 11 cents per share or US$62 million a year earlier.
Excluding one-time items, including the US$165-million legal settlement, it lost US$31 million or five cents per share, compared with a loss of US$27 million or five cents per share in the prior year.
BlackBerry, which reports in U.S. dollars, says revenue for the three months ended May 31 dipped to US$168 million from US$174 million in the first quarter of 2021.
The company was expected to report a loss of 13 cents per share and adjusted loss of five cents per share on US$160.7 million of revenues, according to financial data firm Refinitiv.
“BlackBerry entered fiscal year 2023 with solid momentum, and this quarter we continued to execute well. At our recent Analyst Day, we outlined our 3 and 5 year financial goals for the business.
Our performance demonstrates that our operational plans to achieve those goals are starting to deliver results,” said John Chen, Executive Chairman & CEO, BlackBerry.
“The IoT business maintained its momentum of new design wins in rapidly growing core Auto domains, including Advanced Driver Assistance Systems and Digital Cockpits, and delivered a third consecutive record quarter for pre-production revenues.
The Cybersecurity business demonstrated solid traction in the market by recording double-digit year-over-year billings growth. Given its exciting market opportunities, and synergies as the two markets continue to converge, the Company is well positioned to invest and drive growth.”
First Quarter Fiscal 2023 Financial Highlights
Total company revenue was $168 million.
Total company non-GAAP gross margin was 63% and GAAP gross margin was 62%.
IoT revenue was $51 million, a 19% increase year-over-year, with gross margin of 84% and ARR of $94 million, while royalty revenue backlog increased by 14% year-over-year to approximately $560 million.
Cybersecurity revenue was $113 million, a 6% increase year-over-year, with gross margin of 53% and ARR of $334 million.
Software and Services revenue in total was $164 million, a 9% increase year-over-year.
Licensing and Other revenue was $4 million, with gross margin of 50%.
Non-GAAP operating loss was $27 million. GAAP operating loss was $177 million, mainly driven by a one-time litigation settlement of $165 million.
Total cash, cash equivalents, short-term and long-term investments were $721 million.
Total net cash position was $356 million.
Net cash used operating activities was $42 million.
BlackBerry reached a settlement in April to the lawsuit alleging it defrauded shareholders by making misleading claims about its BlackBerry 10 smartphones.
“Our performance demonstrates that our operational plans to achieve those goals are starting to deliver results,” executive chairman and CEO John Chen said.
Business Highlights & Strategic Announcements
BICV selects BlackBerry to power an intelligent Digital Cockpit, featuring augmented reality, artificial intelligence, and hologram functions for new Renault Jiangling all-electric sedan
BlackBerry and BiTECH jointly develop a digital LCD instrument cluster for Changan’s next-generation high-end UNI-V Coupe
BlackBerry and Magna entered a multi-year agreement to collaborate on next-generation Advanced Driver Assistance System (ADAS) solutions for global automakers
BlackBerry QNX OS for Safety 2.2 is to be certified to the highest level of functional safety for the rail industry and the QNX Hypervisor 2.2 is recognized with the highest functional safety standard for medical device software