BlackBerry Limited BB reported decent first-quarter fiscal 2021 (ended May 31, 2020) results, with adjusted earnings beating the Zacks Consensus Estimate. The cybersecurity software and services company is capitalizing on the secular trends of securing and connecting endpoints.
In the quarter, BlackBerry QNX was impacted by macro headwinds in the auto and other embedded sectors. On the enterprise front, the company saw healthy demand for BlackBerry’s security, business continuity and productivity solutions in a remote working environment.
On a GAAP basis, net loss in the quarter was $636 million or loss of $1.14 per share compared with a net loss of $35 million or loss of 9 cents per share in the prior-year quarter. The deterioration was mainly caused by higher operating loss.
However, non-GAAP net income in fiscal first-quarter came in at $12 million or 2 cents per share compared with $5 million or 1 cent per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 4 cents.
BlackBerry Limited Price, Consensus and EPS Surprise
BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote
Quarterly total GAAP revenues declined 16.6% year over year to $206 million. This was primarily due to lower software and service as well as licensing revenues. Non-GAAP revenues in fiscal first-quarter dropped 19.9% to $214 million. However, the top line surpassed the consensus estimate of $209 million.
Gross profit fell to $143 million from $177 million in the year-ago quarter, primarily due to lower revenues. Total operating expenses increased to $788 million from $213 million. This was caused by a non-cash, one-time goodwill impairment charge of $594 million. Operating loss was $645 million compared with a loss of $36 million in the prior-year quarter.
Cash Flow & Liquidity
In first-quarter fiscal 2021, BlackBerry utilized $31 million of net cash in operating activities compared with a cash utilization of $64 million in the year-ago quarter. As of May 31, 2020, the company had $312 million in cash and equivalents with $111 million of operating lease liabilities compared with the respective tallies of $377 million and $120 million at the end of the prior quarter.
Due to uncertainties stemming from the COVID-19 pandemic, BlackBerry did not provide a financial outlook for fiscal 2021.
Zacks Rank & Other Stocks to Consider
BlackBerry currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader industry are Turtle Beach Corporation HEAR, Ooma, Inc. OOMA and Acacia Communications, Inc. ACIA, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Turtle Beach has a trailing four-quarter positive earnings surprise of 46.4%, on average.
Ooma has a trailing four-quarter positive earnings surprise of 228.2%, on average.
Acacia has a trailing four-quarter positive earnings surprise of 17.7%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
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