Highlights from BlackBerry Conference Call

Benzinga

Highlights from BlackBerry (NASDAQ: BBRY) conference call.

  • Last earnings call laid out an eight-quarter plan and strategic priorities for returning the company to growth and as far as profitability.
    • Extremely pleased with the Q4 results.
    • Put company on the track and if not, slightly ahead.
  • Operating expenses on target and it's actually ahead of target.
  • Last few months spent a lot of time streamline,
    • Spent a lot of time understanding channels.
    • Spent a lot of time streamlining and rationalizing channels.
    • As a result channel inventory is down by one-third.
  • Getting ready to ship first device with collaboration with Foxconn.
    • About four months after the announced partnership and that will obviously follow by the long-awaited classic.
  • The first strategy in the very near term or current term is about a priority of BlackBerry to return to financial soundness.
    • Handset business must be made profitable.
    • Working on supply chains with the life of Foxconn where strong and another suppliers all across the world.
    • Putting a big emphasis of protecting custom investment of the past.
  • Growth will come, at least in the immediate future, will come from software and services.
    • Messaging like BBM and embedded software like QNX.
    • Lot of buzz around QNX in the last quarter. QNX is obviously our micro kernal suitable for embedding, embedded technology world.
  • One of the big items in the last few months talking to customers is to be able to bridge the install base into the new devices and new technology.
    • Both the BB 10 and well as the going forward BB 12.
    • Putting a lot of emphasis on BB 12, as well as the classic device.
  • Looking at expanding into non-traditional channels such as e-commerce like the Shop Berry
  • Jakarta has leveraged a solid.
    • BlackBerry user base in Indonesia and technically precisioned Blackberry for growth in the emerging market with a very attractive price offering which is under U.S. $200.
  • Targeting the calendar Q4 for the Classic to be released.
    • Will probably be in tandem with the best 12 releases.
    • This device is obviously for true BlackBerry loyalist and return ourselves to the roots.
  • Seeing a solid uptick in multi-platform users driving growth in total registration for BBM.
  • Last quarter made the comment that the company had work to do on reducing elements of fixed cost impacting margins.
    • During the quarter, began executing on a variety of those tasks focused on doing that and have started to see the positive results.
  • The goal that was originally communicated in September was to reduce adjusted operating expenses by 50% compared to the Q1 F14 run rate of approximately 1.2 billion.
    • With the adjusted OpEx levels reported in Q4, pleased to say that through relentless focus and execution Blackberry was able to deliver on this goal one quarter ahead of schedule.
  • Looking ahead, the company anticipates maintaining a strong cash position and continuing to look for opportunities to streamline our operations.
    • The company is targeting to return to breakeven by the end of fiscal 2015 from a cash flow perspective.
    Q&A:
  • People don't know how good the company is in the cost platforms capabilities.
  • Important to solve migration issues or dual infrastructure issues,
    • As well as making sure that people know the company has very strong offerings.
    • Therefore, the BES 12 is why it's important. It will rollout probably the October, November timeframe more November than October.

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