- Preliminary second quarter fiscal year 2024 revenue for
BlackBerry is estimated to be approximately $132 million
- IoT business unit revenue expected to be approximately
$49 million, representing 9%
sequential growth
- Cybersecurity business unit revenue expected to be
approximately $80 million, lower than
expected, primarily due to certain large government deals not
closing in the quarter
- Licensing and Other business unit revenue expected to be
approximately $3 million
- Full-year revenue outlook for Cybersecurity and Licensing
reiterated, IoT outlook adjusted to reflect factors including
revised production schedules at certain automakers
WATERLOO, ON, Sept. 6,
2023 /PRNewswire/ -- BlackBerry Limited (NYSE:
BB; TSX: BB) today provided a business update and announced
selected, unaudited preliminary financial results for the three
months ended August 31, 2023 (all
figures in U.S. dollars and U.S. GAAP, except where otherwise
indicated).
"Like many software companies, our Cybersecurity business has
experienced elongated sales cycles, particularly in BlackBerry's
core government vertical, where we have a strong market position.
Given the product mix, delays in closing certain large deals are
expected to impact revenue recognized in the quarter. However, we
expect to close these deals this fiscal year and are therefore
reiterating the full-year outlook for the Cybersecurity business
unit given previously," said John
Chen, Executive Chair & CEO, BlackBerry. "Our IoT
business unit continues to capitalize on its large market
opportunity and multi-year secular tailwinds by securing new design
wins at a strong rate. However, in the short term we are seeing
some automakers shift the start of software development programs,
as well as production schedules, and therefore we've revised our
current year revenue outlook, but not our long-term
targets."
Preliminary Second Quarter Fiscal 2024 Financial
Results:
- Total company revenue expected to be approximately $132 million.
- IoT revenue expected to be approximately $49 million.
- Cybersecurity revenue expected to be approximately $80 million.
- Licensing and Other revenue expected to be approximately
$3 million.
Outlook:
BlackBerry reiterates its full-year revenue
guidance for both Cybersecurity and Licensing and Other.
Given the potential impact of factors that include, rescheduling
of software development programs and production schedules at
certain large automakers and uncertainty in the macroeconomic
environment, the full-year revenue outlook for the IoT business
unit is now expected to be in the range of $225M to $240M.
Preliminary Financial Results:
The preliminary
financial results for the second quarter ended August 31, 2023, are unaudited estimates, and are
based on information available to management as of the date of this
release and are subject to potential further material changes upon
completion of the Company's standard quarter-end closing
procedures. In preparing this information, management has made
subjective estimates about the appropriateness of certain reported
amounts and disclosures. BlackBerry's actual financial results for
the three months ended August 31,
2023, have not yet been finalized and remain subject to the
completion of management's final review and our other closing
procedures. These preliminary estimated results do not represent a
comprehensive statement of all financial results for the three
months ended August 31, 2023.
Earnings Conference Call and Webcast:
A conference
call and live webcast will be held on Thursday, September 28, 2023 beginning at
5:30 p.m. ET, which can be accessed
using the following link (here) or through the Company's investor
webpage (BlackBerry.com/Investors) or by dialing toll free +1 (877)
270-2148 and entering Elite Entry Number 6312676.
A replay of the conference call will be available at
approximately 8:30 p.m. ET on Thursday,
September 28, 2023, using the same webcast link (here) or by
dialing Canada toll free +1 (855)
669-9658 or US toll free +1 (877) 344-7529 and entering Replay
Access Code 4522458.
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 over
235M vehicles. 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 management, endpoint security,
encryption, and embedded systems. BlackBerry's vision is clear
- to secure a connected future you can trust.
For more information, visit BlackBerry.com and follow
@BlackBerry.
Investor Contact:
BlackBerry Investor Relations
+1 (519) 888-7465
investorrelations@blackberry.com
Media Contact:
BlackBerry Media Relations
+1 (519) 597-7273
mediarelations@blackberry.com
This news release contains forward-looking statements within the
meaning of certain securities laws, including under the U.S.
Private Securities Litigation Reform Act of 1995 and applicable
Canadian securities laws, including statements regarding
BlackBerry's plans, strategies and objectives including its
expectations with respect to its second quarter and full fiscal
year 2024 financial results, and the timing, structure and
financial impacts of certain contracts under negotiation.
The words "expect", "anticipate", "estimate", "may", "will",
"should", "could", "intend", "believe", "target", "plan" and
similar expressions are intended to identify these forward-looking
statements. Forward-looking statements are based on estimates and
assumptions made by BlackBerry in light of its experience and its
perception of historical trends, current conditions and expected
future developments, as well as other factors that BlackBerry
believes are appropriate in the circumstances, including but not
limited to, the matters noted above under "preliminary financial
results", BlackBerry's expectations regarding its business,
strategy, opportunities and prospects, the launch of new products
and services, general economic conditions, competition, and
BlackBerry's expectations regarding its financial performance. Many
factors could cause BlackBerry's actual results, performance
or achievements to differ materially from those expressed or
implied by the forward-looking statements, including, without
limitation, risks related to the following factors: BlackBerry's
strategic review of its businesses, including risk related to
BlackBerry's ability to realize the benefits of any strategic
alternatives being explored and risk that uncertainty relating to
the review may adversely impact the Company's business and
relationships with its partners, customers and employees;
BlackBerry's ability to enhance, develop, introduce or monetize
products and services for the enterprise market in a timely manner
with competitive pricing, features and performance; BlackBerry's
ability to maintain or expand its customer base for its software
and services offerings to grow revenue or achieve sustained
profitability; the intense competition faced by BlackBerry; the
occurrence or perception of a breach of BlackBerry's network
cybersecurity measures, or an inappropriate disclosure of
confidential or personal information; the failure or perceived
failure of BlackBerry's solutions to detect or prevent security
vulnerabilities; BlackBerry's continuing ability to attract new
personnel, retain existing key personnel and manage its staffing
effectively; litigation against BlackBerry; BlackBerry's dependence
on its relationships with resellers and channel partners;
acquisitions, divestitures and other business initiatives; the
impact of the COVID-19 pandemic; network disruptions or other
business interruptions; BlackBerry's ability to foster an ecosystem
of third-party application developers; BlackBerry's products and
services being dependent upon interoperability with rapidly
changing systems provided by third parties; BlackBerry's ability to
obtain rights to use third-party software and its use of open
source software; failure to protect BlackBerry's intellectual
property and to earn expected revenues from intellectual property
rights; BlackBerry being found to have infringed on the
intellectual property rights of others; the substantial asset risk
faced by BlackBerry, including the potential for charges
related to its long-lived assets and goodwill; BlackBerry's
indebtedness; tax provision changes, the adoption of new tax
legislation or exposure to additional tax liabilities; the use and
management of user data and personal information; government
regulations applicable to BlackBerry's products and services,
including products containing encryption capabilities;
environmental, social and governance expectations and standards;
the failure of BlackBerry's suppliers, subcontractors, channel
partners and representatives to use acceptable ethical business
practices or comply with applicable laws; regulations regarding
health and safety, hazardous materials usage and conflict minerals;
foreign operations, including fluctuations in foreign currencies;
adverse economic, geopolitical and environmental conditions; the
fluctuation of BlackBerry's quarterly revenue and operating
results; the volatility of the market price of BlackBerry's common
shares; and rising inflation.
These risk factors and others relating to BlackBerry are
discussed in greater detail in BlackBerry's Annual Report on Form
10-K and the "Cautionary Note Regarding Forward-Looking Statements"
section of BlackBerry's MD&A (copies of which filings may
be obtained at www.sedar.com or www.sec.gov). All of these factors
should be considered carefully, and readers should not place undue
reliance on BlackBerry's forward-looking statements. Any statements
that are forward-looking statements are intended to enable
BlackBerry's shareholders to view the anticipated performance and
prospects of BlackBerry from management's perspective at the time
such statements are made, and they are subject to the risks that
are inherent in all forward-looking statements, as described above,
as well as difficulties in forecasting BlackBerry's financial
results and performance for future periods, particularly over
longer periods, given changes in technology and BlackBerry's
business strategy, evolving industry standards, intense competition
and short product life cycles that characterize the industries in
which BlackBerry operates. Any forward-looking statements are made
only as of today and the company has no intention and undertakes no
obligation to update or revise any of them, except as required by
law.
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SOURCE BlackBerry Limited