Earnings Review and Free Research Report: BlackBerry Reported Quarterly Profit; Announced Share Repurchase Program

LONDON, UK / ACCESSWIRE / July 7, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on BlackBerry Ltd (NASDAQ: BBRY), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=BBRY, following the Company's announcement of its financial results for first quarter FY18 on June 23, 2017. The software and services Company surpassed earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For Q1 FY18, BlackBerry's total GAAP revenue was $235 million down 41.2% from $400 million in Q1 FY17. The Company's non-GAAP revenue for the reported quarter was $244 million, down from $424 million in the same quarter last year, and below analysts' expectations of $261.8 million. BlackBerry stated that approximately 79% of the reported quarter software and services revenue (excluding IP licensing and professional services) was recurring. BlackBerry had over 3,000 enterprise customer orders in Q1 FY18.

For the reported quarter, BlackBerry's consolidated gross margin decreased by $4 million to approximately $150 million from $154 million in Q1 FY17. The decrease was primarily due to the decline in gross margin associated with service access fees, partially offset by an increase in gross margin from handheld devices and licensing, IP, and other. The Company's non-GAAP gross margin for Q1 FY18 was 66.8% of revenue compared to 53.3% in Q1 FY17.

In Q1 FY18, BlackBerry's non-GAAP operating income of $14 million remained unchanged from Q1 FY17. BlackBerry's adjusted EBITDA was $40 million for the reported quarter compared to $58 million in Q1 FY17.

During Q1 FY18, BlackBerry reported net income of $671 million compared to net loss of $670 million in Q1 FY17. The fully diluted GAAP EPS was $1.23 in Q1 FY18 compared to negative GAAP EPS of $1.28 for the same quarter last year. Non-GAAP EPS for the reported quarter was $0.02 compared to $0.00 in Q1 FY17. The Company's earnings numbers surpassed Wall Street's expectations of a break-even quarter.

Balance Sheet

As on May 31, 2017, BlackBerry's cash and cash equivalents increased 50.9% to $2.55 billion from $1.69 billion in Q1 FY17. In Q1 FY18, free cash flow was $860 million, which consisted of cash flow from operations of $863 million and capital expenditures of $3 million.

Share Repurchase

On June 23, 2017, BlackBerry announced that it has received acceptance from the Toronto Stock Exchange (TSX) with respect to a normal course issuer bid ("NCIB") to purchase for cancellation up to 31,000,000 BlackBerry common shares, representing approximately 6.4% of the outstanding public float as at May 31, 2017. BlackBerry can purchase the common shares pursuant to the NCIB through the facilities of the TSX, over the NASDAQ Stock Market or through alternative trading systems. Any BlackBerry's common shares purchased through the NCIB will be canceled.

As of May 31, 2017, BlackBerry had 531,475,629 common shares outstanding and the public float was 481,212,321 common shares. In the past 12 months, BlackBerry repurchased for cancellation US$5,036,000 principal amount of its then-outstanding 6% unsecured convertible debentures at a weighted average price of US$105.26 per US$100.00 principal amount of 6% Debentures. On June 21, 2017, BlackBerry's shareholders approved an increase in the number of shares available under BlackBerry's equity incentive plan. The price that BlackBerry will pay for any shares under the share repurchase program will be the prevailing market price at the time of purchase.

Outlook

For FY18, BlackBerry is expecting non-GAAP gross margins of approximately 70%. The Company is forecasting positive free cash flow and EBITDA for FY18. The Company is planning to launch its vehicle management portal which will target growing market in the automotive technology service, which today is about $30 billion and is expected to grow at a 30% CAGR over the next 15 years.

Stock Performance

BlackBerry's share price finished yesterday's trading session at $9.71, sliding 1.92%. A total volume of 4.12 million shares has exchanged hands. The Company's stock price skyrocketed 22.60% in the last three months, 36.57% in the past six months, and 48.93% in the previous twelve months. Additionally, the stock soared 40.93% since the start of the year. Shares of the Company have a PE ratio of 43.94 and currently have a market cap of $5.16 billion.

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SOURCE: Pro-Trader Daily