BlackBerry Reports Fiscal Year 2019 Second Quarter Results
Fri September 28, 2018 7:00 AM|PR Newswire|About: BB
Q2: 09-28-18 Earnings Summary

Transcript
News

EPS of $0.04 beats by $0.03
Revenue of $214M (- 10.1% Y/Y) beats by $6.29M

- Non-GAAP total company revenue of $214 million; GAAP total company revenue of $210 million

- Non-GAAP total software and services revenue of $197 million; GAAP total software and services revenue of $193 million

- Total software and services billings grew double-digits from the prior year period

- Record high quarterly revenue for BlackBerry Technology Solutions, driven by growth in the automotive vertical



- Non-GAAP gross margin of 78%; GAAP gross margin of 77%

WATERLOO, Ontario, Sept. 28, 2018 /PRNewswire/ -- BlackBerry Limited (NYSE: BB; TSX: BB) today reported financial results for the three months ended August 31, 2018 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

https://mma.prnewswire.com/media/726...Berry_Logo.jpg

Second Quarter Fiscal 2019 Results

Total company non-GAAP revenue for the second quarter of fiscal 2019 was $214 million with GAAP revenue of $210 million. Total non-GAAP software and services revenue of $197 million, up 1% year-over-year. Total GAAP software and services revenue was $193 million, up 4% year-over-year. Approximately 81% of second quarter software and services revenue (excluding IP licensing and professional services) was recurring. Non-GAAP gross margin was 78% and GAAP gross margin was 77%.
Non-GAAP operating income was $17 million, and positive for the tenth consecutive quarter. GAAP operating income was $39 million. Non-GAAP earnings per share was $0.04 (basic and diluted). GAAP net income for the quarter was $0.08 per basic share and a GAAP net loss of $0.04 per diluted share. GAAP net income includes $22 million for acquired intangibles amortization expense, $21 million in stock compensation expense, $3 million in restructuring charges, a benefit of $70 million related to the fair value adjustment on the debentures, and other amounts as summarized in a table below.
Total cash, cash equivalents, short-term and long-term investments was $2.4 billion as of August 31, 2018. Free cash flow, before considering the impact of restructuring and legal proceedings, was positive $37 million. Cash generated from operations was $31 million and capital expenditures were $4 million. Excluding $605 million in the face value of the company's debt, the net cash balance at the end of the quarter was $1.7 billion.

"In the quarter, we exceeded our financial expectations driven by sequential growth in both our BlackBerry Technology Solutions and Enterprise Software and Services businesses" said John Chen, Executive Chairman and CEO, BlackBerry. "I am very encouraged by BlackBerry's leadership opportunities in the fast-growing Enterprise of Things, and by our strategy to capitalize on these significant future opportunities with BlackBerry Spark, our platform to securely communicate and collaborate between smart endpoints."

Outlook
BlackBerry re-affirms its outlook for fiscal 2019, as follows:

Total company software and services billings growth is expected to be double-digits
Total software and services revenue growth of between 8% to 10% year-over-year
Non-GAAP EPS is expected to be positive
Free cash flow is expected to be positive for the full year, before considering the impact of restructuring and legal proceedings

Reconciliation of GAAP revenue, gross margin, gross margin percentage, income before income taxes, net income and basic earnings per share to Non-GAAP revenue, gross margin, gross margin percentage, income before income taxes, net income and basic earnings per share for the three months ended August 31, 2018:

Q2 Fiscal 2019 Non-GAAP Adjustments