BlackBerry Beats Q1 Earnings Estimates, Announces Bullitt Partnership

BlackBerry Ltd BB’s non-GAAP revenue of $217 million and adjusted earnings per share of 3 cents beat $209.03 million and breakeven estimates, respectively. The stcok was trading up about 1.2 percent at $11.85 in Friday's pre-market session.

Here are some of the other takeaways:

  • Software and services saw a 14-percent year-over-year increase in non-GAAP revenue to $193 million, about 86 percent of which was recurring.
  • On a GAAP basis, software and services brought in $189 million for an 18-percent increase.
  • Gross margins came out to 76 percent.
  • Operating income was $12 million on a non-GAAP basis and -$65 million on a GAAP basis.
  • Excluding $605 million in debt, the quarter closed with $1.7 billion in net cash balance on free cash flow of $3 million and $5 million in capex.

"We are off to a solid start in fiscal 2019, with 14 percent year-over-year growth in total software and services revenue driven by strong double-digit billings and an increase in recurring revenue" CEO and Executive Chairman John Chen said in a press release. "I am pleased that BlackBerry QNX software is now embedded in over 120 million automobiles worldwide, doubling the install base in the last three years. We are very excited about the opportunities ahead of us in automobiles and in other EoT verticals."

Management guided for double-digit billings growth driving positive non-GAAP EPS and free cash flow in the 2019 fiscal year.

Bullitt Group Partnership

Concurrently with its earnings release, BlackBerry announced a partnership with Bullitt Group to develop “BlackBerry Secure”-certified connected devices. BlackBerry cybersecurity technology will accordingly be embedded into Caterpillar Inc. CAT and Land Rover products.

"This new deal will allow us to expand our BlackBerry Secure footprint into the more than 100 markets that Bullitt Group currently distributes its products, especially in Europe, the Middle East and Africa," Alex Thurber, senior vice president and general manager of BlackBerry’s Mobility Solutions, said in a separate press release. "Bullitt Group's customers, from farmers and construction workers to outdoor enthusiasts, will now be able to have rugged products that aren't just durable on the outside, but also strong on security on the inside."

Related Links:

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BlackBerry Reports 'Strong' Q4, But 2019 Guidance Is Limited, Says BMO

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Posted In: EarningsNewsContractsTop StoriesBullitt Groupjohn chen
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