Corporate News

Blackberry Q3 Fiscal 2016 Results – Plan to strengthen Smartphone Business

John_chen

John Chen, Blackberry Executive Chairman and CEO stated :

“I am pleased with our continued progress on BlackBerry’s strategic priorities, leading to 14 percent sequential growth in total revenue for Q3. We delivered accelerating growth in enterprise software and higher revenue across all of our areas of focus. Our new PRIV device has been well received since its launch in November, and we are expanding distribution to additional carriers around the world in the next several quarters.”

“BlackBerry has a solid financial foundation, and we are executing well. To sustain our current direction, we are stepping up investments to drive continued software growth and the additional PRIV launches. I anticipate this will result in sequential revenue growth in our software, hardware and messaging businesses in Q4.”

  1. During the third quarter of fiscal 2016, the Company reported GAAP gross margin of $236 million or 43.1% of revenue. Excluding the impact of the resource alignment program (“RAP”) charges included in cost of sales and software deferred revenue acquired included in revenue, the non-GAAP gross margin was $250 million or 44.9% of revenue.
  2. During the third quarter of fiscal 2016, the Company recorded the Q3 Fiscal 2016 Debentures Fair Value Adjustment of $5 million. This adjustment was presented on a separate line in the Consolidated Statement of Operations.
  3. During the third quarter of fiscal 2016, the Company incurred charges related to the RAP of $33 million pre-tax and after tax, of which $5 million were included in cost of sales, $2 million were included in research and development and $26 million were included in selling, marketing, and administration expenses.
  4. During the third quarter of fiscal 2016, the Company recovered charges related to the CORE program of $6 million, which were included in selling, marketing, and administration expenses.
  5. During the third quarter of fiscal 2016, he Company recorded software deferred revenue acquired but not recognized due to business combination accounting rules of $9 million, which were included in revenue.
  6. During the third quarter of fiscal 2016, the Company recorded stock compensation expense of $14 million, of which $4 million were included in research and development, and $10 million were included in selling, marketing, and administration expenses.
  7. During the third quarter of fiscal 2016, the Company recorded amortization of intangible assets acquired through business combinations of $18 million, which were included in amortization expense.
  8. During the third quarter of fiscal 2016, the Company recorded acquisition costs incurred through business combinations of $11 million, which were included in selling, marketing, and administration expenses.

Blackberry’s main Revenue is always coming from North America, Europe, Middle East and Africa, which contributes ~ 85.6 %, while Asia Region is contributing ~ 10 %.

Highlights for Q3 2016

  • Non-GAAP total revenue of $557 million, up 14 percent over Q2 FY16.
  • Non-GAAP software and servicesrevenue of $162 million, up 183 percent year over year and up 119 percent quarter over quarter.
  • Adjusted EBITDA of $114 million.
  • Cash and investments balance of $2.71 billion at the end of the fiscal quarter, including the impact of the recent acquisitions of AtHoc and Good Technology.
  • Non-GAAP loss of ($0.03) per share.
  • Completed the acquisitions of AtHoc and Good Technology.
  • Launched the PRIV in November, the only smartphone that combines BlackBerry-level security with the Google Play App Store’s 1.6 million apps.
  • Confirmed plans to release OS version 10.3.3 on BlackBerry 10 to support NIAP certification

Please read the Full statement : Blackberry_Q3_FY16_Earnings_Press_Release_FINAL_Dec_17_2015

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