BlackBerry Limited Reports FY 2021 Q1 Results; John Chen Quoted

BlackBerry Limited Reports FY 2021 Q1 Results; John Chen Quoted
John Chen Executive Chairman

BlackBerry Limited has announced its fiscal year (FY) 2021 first quarter (Q1) results, noting that the total company non-GAAP revenue of $214 million and total company GAAP revenue of $206 million, the company reported on Thursday.

"On the enterprise front, we saw good demand from customers who recognized the necessity for BlackBerry's security, business continuity, and productivity solutions in an increasingly remote working environment. BlackBerry is capitalizing on the secular trends of securing and connecting endpoints," said John Chen, executive chairman and CEO of BlackBerry. 

Blackberry’s recurring non-GAAP software product revenue was over 90 percent, with non-GAAP gross margins of 71 percent versus 75 percent last year, and GAAP gross margin was 69 percent versus 72 percent last year.

The company’s Non-GAAP operating earnings were $3 million versus non-GAAP operating earnings of $5 million last year. GAAP operating loss was $645 million versus GAAP operating loss of $36 million last year.

The non-GAAP earnings per share was $0.02 versus non-GAAP earnings per share of $0.01 last year. GAAP net loss per share was $1.14 versus GAAP net loss per share of $0.06: basic, and $0.09: diluted last year.

First quarter fiscal 2021 GAAP net loss includes $594 million in a non-cash, one-time goodwill impairment charge primarily related to the impairment of the BlackBerry Spark reporting unit, $33 million for acquired intangibles amortization expense, $14 million in stock compensation expense, a charge of $1 million related to the fair value adjustment on the debentures. 

At May 31, 2020, total cash, cash equivalents, short-term and long-term investments were $955 million. Net cash used by operating activities of $31 million and capital expenditures of $1 million. Given the uncertainty across the global economy due to the COVID-19 pandemic, BlackBerry will not provide a financial outlook for fiscal 2021.

"BlackBerry QNX was impacted by macro headwinds in the auto and other embedded sectors but we are starting to see signs of a recovery," Chen added. 

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 175M cars on the road today.  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 security management, encryption, and embedded systems. 

BlackBerry's vision is clear – to secure a connected future you can trust.

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