-- Total company revenue of $174
million.
-- IoT revenue of $43
million.
-- Cyber Security revenue of $107
million.
-- Licensing & Other revenue of $24 million.
-- Non-GAAP loss per basic and diluted share of $0.05; GAAP loss per basic and diluted share of
$0.11.
WATERLOO, ON, June 24, 2021 /PRNewswire/ -- BlackBerry Limited
(NYSE: BB; TSX: BB) today reported financial results for the three
months ended May 31, 2021 (all
figures in U.S. dollars and U.S. GAAP, except where otherwise
indicated).
"This quarter we aligned the business around the two key
market opportunities – IoT and Cyber Security. In IoT we are
pleased with the strong progress of the auto business, despite
global chip shortage headwinds. Design activity remains
strong, the number of vehicles with QNX software embedded has
increased to 195 million, and royalty revenue backlog grew by 9%
year-over-year. Tangible progress continues to be made with
BlackBerry IVY, including the launch of the IVY Advisory Council
and the first investment by the IVY Innovation Fund," said
John Chen, Executive Chairman &
CEO, BlackBerry. "On the Cyber Security side, we announced two new
significant product launches as part of our XDR strategy –
BlackBerry Gateway and Optics 3.0. We continue to see strong
pipeline growth for our new UES products."
First Quarter Fiscal 2022 Financial Highlights
- Total company revenue for the first quarter of fiscal 2022 was
$174 million.
- Total company gross margin was 66%.
- IoT revenue for the first quarter of fiscal 2022 was
$43 million, with gross margin of 84%
and ARR of $86 million.
- BlackBerry QNX royalty revenue backlog increased from
$450 million in Q1 FY21 to
$490 million in Q1 FY22, a 9%
increase year-over-year.
- Cyber Security revenue for the first quarter of fiscal 2022 was
$107 million, with gross margin of
57% and ARR of $364 million.
- Licensing and Other revenue for the first quarter of fiscal
2022 was $24 million as negotiations
for the sale of a portion of the patent portfolio continue.
- Non-GAAP operating loss was $23
million. GAAP operating loss was $58
million.
- Non-GAAP loss per share was $0.05
(basic and diluted). GAAP loss per share was $0.11 (basic and diluted).
- Total cash, cash equivalents, short-term and long-term
investments were $769 million.
- Net cash used by operating activities was $33 million.
Business Highlights & Strategic Announcements
- Volvo Group selected BlackBerry® QNX® operating system and
hypervisor as foundation for its 'Volvo Dynamic Software Platform',
to meet the needs of the 'whole truck'.
- WM Motor, a Chinese electric carmaker, chose BlackBerry QNX to
power its W6 all-electric SUV.
- BlackBerry QNX and BiTECH Automotive (formerly Bosch Car
Multimedia Wuhu Co. Ltd) jointly developed a digital LCD instrument
cluster for Changan's UNI-K SUV.
- BlackBerry QNX is now embedded in over 195 million vehicles,
increasing from over 175 million vehicles last year.
- BlackBerry launched BlackBerry IVY Advisory Council to drive
use case generation using BlackBerry IVY™. Initial members include
Geico, Cerence, HERE, Telus and Amazon.
- BlackBerry's IVY Innovation Fund made its first investment in
Electra Vehicles, a start-up that will use data from BlackBerry IVY
in its AI-driven platform to optimize battery performance.
- BlackBerry announced appointment of Mattias Eriksson as President of IoT business
unit.
- BlackBerry announced BlackBerry® Optics 3.0, its
next-generation cloud-based endpoint detection and response (EDR)
solution.
- BlackBerry further built out Extended Detection and Response
(XDR) strategy with launch of BlackBerry® Gateway, the company's
first AI-empowered Zero Trust Network Access (ZTNA) product.
- BlackBerry's AI-driven, prevention-first BlackBerry® Protect
product demonstrated to block both DarkSide ransomware and Conti
ransomware, even using the 2015 version of the product.
Outlook
BlackBerry will provide fiscal year 2022
outlook in connection with the quarterly earnings announcement on
its earnings conference call. The earnings call transcript will be
made available on our website and on SEDAR.
Use of Non-GAAP Financial Measures
The tables at the
end of this press release include a reconciliation of the non-GAAP
financial measures used by the company to comparable U.S. GAAP
measures and an explanation of why the company uses them.
Conference Call and Webcast
A conference call and live
webcast will be held today beginning at 5:30
p.m. ET, which can be accessed by dialing +1 (877) 682-6267
or by logging on at BlackBerry.com/Investors.
A replay of the conference call will also be available at
approximately 8:30 p.m. ET by dialing
+1 (800) 585-8367 and entering Conference ID #2676452 and at the
link above.
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 more than
195M 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, and is a
leader in the areas of endpoint security, endpoint management,
encryption, and embedded systems. BlackBerry's vision is
clear - to secure a connected future you can trust.
BlackBerry. Intelligent Security. Everywhere.
For more information, visit BlackBerry.com and follow @BlackBerry.
Investor Contact:
BlackBerry Investor Relations
+1 (519) 888-7465
investor_relations@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 BlackBerry QNX and BlackBerry IVY and
increasing and enhancing its product and service
offerings.
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, BlackBerry's expectations regarding its business,
strategy, opportunities and prospects, the launch of new products
and services, general economic conditions, the ongoing COVID-19
pandemic, 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 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; the impact of the COVID-19 pandemic;
BlackBerry's continuing ability to attract new personnel, retain
existing key personnel and manage its staffing effectively;
BlackBerry's dependence on its relationships with resellers and
channel partners; litigation against BlackBerry; 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;
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;
acquisitions, divestitures and other business initiatives; foreign
operations, including fluctuations in foreign currencies; the
fluctuation of BlackBerry's quarterly revenue and operating
results; the volatility of the market price of BlackBerry's common
shares; adverse economic, geopolitical and environmental
conditions.
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. BlackBerry has no intention and undertakes no obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by applicable law.
BlackBerry
Limited
Incorporated under
the Laws of Ontario
(United States
dollars, in millions except share and per share amounts)
(unaudited)
Consolidated
Statements of Operations
|
|
|
|
For The Three
Months Ended
|
|
May 31,
2021
|
|
February 28,
2021
|
|
May 31,
2020
|
Revenue
|
$
|
174
|
|
|
$
|
210
|
|
|
$
|
206
|
|
Cost of
sales
|
60
|
|
|
58
|
|
|
63
|
|
Gross
margin
|
114
|
|
|
152
|
|
|
143
|
|
Gross margin
%
|
65.5
|
%
|
|
72.4
|
%
|
|
69.4
|
%
|
Operating
expenses
|
|
|
|
|
|
Research and
development
|
57
|
|
|
48
|
|
|
57
|
|
Selling, marketing and
administration
|
73
|
|
|
92
|
|
|
90
|
|
Amortization
|
46
|
|
|
45
|
|
|
46
|
|
Impairment of
goodwill
|
—
|
|
|
—
|
|
|
594
|
|
Impairment of
long-lived assets
|
—
|
|
|
22
|
|
|
—
|
|
Debentures fair value
adjustment
|
(4)
|
|
|
258
|
|
|
1
|
|
|
172
|
|
|
465
|
|
|
788
|
|
Operating
loss
|
(58)
|
|
|
(313)
|
|
|
(645)
|
|
Investment loss,
net
|
(2)
|
|
|
—
|
|
|
—
|
|
Loss before income
taxes
|
(60)
|
|
|
(313)
|
|
|
(645)
|
|
Provision for
(recovery of) income taxes
|
2
|
|
|
2
|
|
|
(9)
|
|
Net
loss
|
$
|
(62)
|
|
|
$
|
(315)
|
|
|
$
|
(636)
|
|
Loss per
share
|
|
|
|
|
|
Basic
|
$
|
(0.11)
|
|
|
$
|
(0.56)
|
|
|
$
|
(1.14)
|
|
Diluted
|
$
|
(0.11)
|
|
|
$
|
(0.56)
|
|
|
$
|
(1.14)
|
|
|
|
|
|
|
|
Weighted-average
number of common shares outstanding (000s)
|
|
|
|
|
|
Basic
|
567,358
|
|
|
566,089
|
|
|
557,839
|
|
Diluted
|
567,358
|
|
|
566,089
|
|
|
557,839
|
|
Total common shares
outstanding (000s)
|
566,248
|
|
|
565,505
|
|
|
555,623
|
|
BlackBerry
Limited
Incorporated under
the Laws of Ontario
(United States
dollars, in millions) (unaudited)
Consolidated
Balance Sheets
|
|
|
|
|
|
As
at
|
|
|
May 31,
2021
|
|
February 28,
2021
|
Assets
|
|
|
|
|
Current
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
339
|
|
|
$
|
214
|
|
Short-term
investments
|
|
364
|
|
|
525
|
|
Accounts receivable,
net of allowance of $9 and $10, respectively
|
|
153
|
|
|
182
|
|
Other
receivables
|
|
26
|
|
|
25
|
|
Income taxes
receivable
|
|
10
|
|
|
10
|
|
Other current
assets
|
|
61
|
|
|
50
|
|
|
|
953
|
|
|
1,006
|
|
Restricted cash
equivalent and restricted short-term investments
|
|
29
|
|
|
28
|
|
Long-term
investments
|
|
37
|
|
|
37
|
|
Other long-term
assets
|
|
15
|
|
|
16
|
|
Operating lease
right-of-use assets, net
|
|
59
|
|
|
63
|
|
Property, plant
and equipment, net
|
|
46
|
|
|
48
|
|
Goodwill
|
|
850
|
|
|
849
|
|
Intangible assets,
net
|
|
732
|
|
|
771
|
|
|
|
$
|
2,721
|
|
|
$
|
2,818
|
|
Liabilities
|
|
|
|
|
Current
|
|
|
|
|
Accounts
payable
|
|
$
|
22
|
|
|
$
|
20
|
|
Accrued
liabilities
|
|
164
|
|
|
178
|
|
Income taxes
payable
|
|
8
|
|
|
6
|
|
Deferred revenue,
current
|
|
208
|
|
|
225
|
|
|
|
402
|
|
|
429
|
|
Deferred revenue,
non-current
|
|
57
|
|
|
69
|
|
Operating lease
liabilities
|
|
85
|
|
|
90
|
|
Other long-term
liabilities
|
|
6
|
|
|
6
|
|
Long-term
debentures
|
|
715
|
|
|
720
|
|
|
|
1,265
|
|
|
1,314
|
|
Shareholders'
equity
|
|
|
|
|
Capital stock and
additional paid-in capital
|
|
2,834
|
|
|
2,823
|
|
Deficit
|
|
(1,368)
|
|
|
(1,306)
|
|
Accumulated other
comprehensive loss
|
|
(10)
|
|
|
(13)
|
|
|
|
1,456
|
|
|
1,504
|
|
|
|
$
|
2,721
|
|
|
$
|
2,818
|
|
BlackBerry
Limited
Incorporated under
the Laws of Ontario
(United States
dollars, in millions) (unaudited)
Consolidated
Statements of Cash Flows
|
|
Three Months
Ended
|
|
May 31,
2021
|
|
May 31,
2020
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
|
(62)
|
|
|
$
|
(636)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Amortization
|
49
|
|
|
50
|
|
Stock-based
compensation
|
7
|
|
|
13
|
|
Impairment of
goodwill
|
—
|
|
|
594
|
|
Debentures fair value
adjustment
|
(4)
|
|
|
1
|
|
Operating
leases
|
(3)
|
|
|
(3)
|
|
Other
|
(3)
|
|
|
(1)
|
|
Net changes in
working capital items
|
|
|
|
Accounts receivable,
net of allowance
|
29
|
|
|
1
|
|
Other
receivables
|
(1)
|
|
|
(6)
|
|
Income taxes
receivable
|
—
|
|
|
(2)
|
|
Other
assets
|
(6)
|
|
|
—
|
|
Accounts
payable
|
2
|
|
|
15
|
|
Accrued
liabilities
|
(14)
|
|
|
(18)
|
|
Income taxes
payable
|
2
|
|
|
(7)
|
|
Deferred
revenue
|
(29)
|
|
|
(32)
|
|
Net cash used in
operating activities
|
(33)
|
|
|
(31)
|
|
Cash flows from
investing activities
|
|
|
|
Acquisition of
long-term investments
|
—
|
|
|
(1)
|
|
Acquisition of
property, plant and equipment
|
(2)
|
|
|
(1)
|
|
Acquisition of
intangible assets
|
(6)
|
|
|
(8)
|
|
Acquisition of
short-term investments
|
(209)
|
|
|
(299)
|
|
Proceeds on sale or
maturity of restricted short-term investments
|
24
|
|
|
—
|
|
Proceeds on sale or
maturity of short-term investments
|
369
|
|
|
270
|
|
Net cash provided
by (used in) investing activities
|
176
|
|
|
(39)
|
|
Cash flows from
financing activities
|
|
|
|
Issuance of common
shares
|
4
|
|
|
4
|
|
Net cash provided
by financing activities
|
4
|
|
|
4
|
|
Effect of foreign
exchange gain on cash, cash equivalents, restricted cash, and
restricted cash
equivalents
|
3
|
|
|
—
|
|
Net increase
(decrease) in cash, cash equivalents, restricted cash, and
restricted cash equivalents
during the period
|
150
|
|
|
(66)
|
|
Cash, cash
equivalents, restricted cash, and restricted cash equivalents,
beginning of period
|
218
|
|
|
426
|
|
Cash, cash
equivalents, restricted cash, and restricted cash equivalents, end
of period
|
$
|
368
|
|
|
$
|
360
|
|
|
As
at
|
May 31,
2021
|
|
February 28,
2021
|
Cash and cash
equivalents
|
$
|
339
|
|
|
$
|
214
|
|
Restricted cash
equivalents and restricted short-term investments
|
29
|
|
|
28
|
|
Short-term
investments
|
364
|
|
|
525
|
|
Long-term
investments
|
37
|
|
|
37
|
|
|
$
|
769
|
|
|
$
|
804
|
|
Reconciliations of the Company's Segment Results to the
Consolidated Results
The Company reports segment information in accordance with U.S.
GAAP Accounting Standards Codification Section 280 based on the
"management" approach. The management approach designates the
internal reporting used by the Chief Operating Decision Maker for
making decisions and assessing performance of the Company's
reportable operating segments.
The following table reconciles the Company's segment results for
the three months ended May 31, 2021
to consolidated U.S. GAAP results:
|
For the Three Months
Ended May 31, 2021
|
|
(in millions)
(unaudited)
|
|
Cyber
Security
|
|
IoT
|
Licensing and
Other
|
Segment
Totals
|
|
Reconciling
Items
|
|
Consolidated
U.S. GAAP
|
Revenue
|
$
|
107
|
|
|
$
|
43
|
|
|
$
|
24
|
|
|
$
|
174
|
|
|
$
|
—
|
|
|
$
|
174
|
|
Cost of sales
(1)
|
46
|
|
|
7
|
|
|
6
|
|
|
59
|
|
|
1
|
|
|
60
|
|
Gross
margin
|
$
|
61
|
|
|
$
|
36
|
|
|
$
|
18
|
|
|
$
|
115
|
|
|
$
|
(1)
|
|
|
$
|
114
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
172
|
|
|
172
|
|
Investment loss,
net
|
|
|
|
|
|
|
|
|
2
|
|
|
2
|
|
Loss before income
taxes
|
|
|
|
|
|
|
|
|
|
|
$
|
(60)
|
|
______________________________
(1)
|
See "Reconciliations
of Non-GAAP Measures with the Nearest Comparable U.S. GAAP
Measures" for a reconciliation of selected U.S. GAAP-based measures
to adjusted measures for the three months ended May 31,
2021.
|
The following table reconciles the Company's segment results for
the three months ended May 31, 2020
to consolidated U.S. GAAP results:
|
For the Three Months
Ended May 31, 2020
|
|
(in millions)
(unaudited)
|
|
Cyber
Security
|
|
IoT
|
Licensing and
Other
|
Segment
Totals
|
|
Reconciling
Items
|
|
Consolidated
U.S. GAAP
|
Revenue
|
$
|
119
|
|
|
$
|
29
|
|
|
$
|
58
|
|
|
$
|
206
|
|
|
$
|
—
|
|
|
$
|
206
|
|
Cost of sales
(1)
|
47
|
|
|
6
|
|
|
8
|
|
|
61
|
|
|
2
|
|
|
63
|
|
Gross
margin
|
$
|
72
|
|
|
$
|
23
|
|
|
$
|
50
|
|
|
$
|
145
|
|
|
$
|
(2)
|
|
|
$
|
143
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
788
|
|
|
788
|
|
Loss before income
taxes
|
|
|
|
|
|
|
|
|
|
|
$
|
(645)
|
|
______________________________
(1)
|
See "Reconciliations
of Non-GAAP Measures with the Nearest Comparable U.S. GAAP
Measures" for a reconciliation of selected U.S. GAAP-based measures
to adjusted measures for the three months ended May 31,
2020.
|
Reconciliations of Non-GAAP Measures with the Nearest
Comparable U.S. GAAP Measures
In the Company's internal reports, management evaluates the
performance of the Company's business on a non-GAAP basis by
excluding the impact of certain items below from the Company's U.S.
GAAP financial results. The Company believes that these non-GAAP
measures provide management, as well as readers of the Company's
financial statements, with a consistent basis for comparison across
accounting periods and is useful in helping management and readers
understand the Company's operating results and underlying
operational trends. In the first quarter of fiscal 2022, the
Company discontinued its use of software deferred revenue acquired
and software deferred commission acquired adjustments in its
non-GAAP financial measures due to the quantitative decline in the
adjustments over time. For purposes of comparability, the Company's
non-GAAP financial measures for the three months ended May 31, 2020 have been updated to conform to the
current year's presentation.
Readers are cautioned that adjusted gross margin, adjusted gross
margin percentage, adjusted operating expense, adjusted operating
loss, adjusted EBITDA, adjusted operating loss margin percentage,
adjusted EBITDA margin percentage, adjusted net income (loss),
adjusted income (loss) per share, adjusted research and development
expense, adjusted selling, marketing and administrative expense and
adjusted amortization expense and similar measures do not have any
standardized meaning prescribed by U.S. GAAP and are therefore
unlikely to be comparable to similarly titled measures reported by
other companies. These non-GAAP financial measures should be
considered in the context of the U.S. GAAP results.
Reconciliation of non-GAAP based measures with most
directly comparable U.S. GAAP based measures for the three months
ended May 31, 2021 and May 31, 2020
A reconciliation of the most directly comparable U.S. GAAP
financial measures for the three months ended May 31, 2021 and May 31,
2020 to adjusted financial measures is reflected in the
tables below:
For the Three
Months Ended (in millions)
|
|
May 31,
2021
|
|
May 31,
2020
|
Gross
margin
|
|
$
|
114
|
|
|
$
|
143
|
|
Stock compensation
expense
|
|
1
|
|
|
2
|
|
Adjusted gross
margin
|
|
$
|
115
|
|
|
$
|
145
|
|
|
|
|
|
|
Gross margin
%
|
|
65.5
|
%
|
|
69.4
|
%
|
Stock compensation
expense
|
|
0.6
|
%
|
|
1.0
|
%
|
Adjusted gross
margin %
|
|
66.1
|
%
|
|
70.4
|
%
|
Reconciliation of operating expense for the three months ended
May 31, 2021 and May 31, 2020 to adjusted operating expense is
reflected in the tables below:
For the Three
Months Ended (in millions)
|
|
May 31,
2021
|
|
May 31,
2020
|
Operating
expense
|
|
$
|
172
|
|
|
$
|
788
|
|
Restructuring
charges
|
|
—
|
|
|
1
|
|
Stock compensation
expense
|
|
6
|
|
|
12
|
|
Debenture fair value
adjustment
|
|
(4)
|
|
|
1
|
|
Acquired intangibles
amortization
|
|
32
|
|
|
33
|
|
Goodwill impairment
charge
|
|
—
|
|
|
594
|
|
Adjusted operating
expense
|
|
$
|
138
|
|
|
$
|
147
|
|
Reconciliation of U.S. GAAP net loss and U.S. GAAP basic loss
per share for the three months ended May 31,
2021 and May 31, 2020 to
adjusted net income (loss) and adjusted basic earnings (loss) per
share is reflected in the tables below:
For the Three
Months Ended (in millions, except per share amounts)
|
|
May 31,
2021
|
|
May 31,
2020
|
|
|
|
|
Basic
earnings
(loss) per
share
|
|
|
|
Basic
earnings
(loss) per
share
|
Net
loss
|
|
$
|
(62)
|
|
|
$(0.11)
|
|
$
|
(636)
|
|
|
$(1.14)
|
Restructuring
charges
|
|
—
|
|
|
|
|
1
|
|
|
|
Stock compensation
expense
|
|
7
|
|
|
|
|
14
|
|
|
|
Debenture fair value
adjustment
|
|
(4)
|
|
|
|
|
1
|
|
|
|
Acquired intangibles
amortization
|
|
32
|
|
|
|
|
33
|
|
|
|
Goodwill impairment
charge
|
|
—
|
|
|
|
|
594
|
|
|
|
Adjusted net
income (loss)
|
|
$
|
(27)
|
|
|
$(0.05)
|
|
$
|
7
|
|
|
$0.01
|
Reconciliation of U.S. GAAP research and development, selling,
marketing and administration, and amortization expense for the
three months ended May 31, 2021 and
May 31, 2020 to adjusted research and
development, selling, marketing and administration, and
amortization expense is reflected in the tables below:
For the Three
Months Ended (in millions)
|
|
May 31,
2021
|
|
May 31,
2020
|
Research and
development
|
|
$
|
57
|
|
|
$
|
57
|
|
Stock compensation
expense
|
|
2
|
|
|
3
|
|
Adjusted research
and development
|
|
$
|
55
|
|
|
$
|
54
|
|
|
|
|
|
|
Selling, marketing
and administration
|
|
$
|
73
|
|
|
$
|
90
|
|
Restructuring
charges
|
|
—
|
|
|
1
|
|
Stock compensation
expense
|
|
4
|
|
|
9
|
|
Adjusted selling,
marketing and administration
|
|
$
|
69
|
|
|
$
|
80
|
|
|
|
|
|
|
Amortization
|
|
$
|
46
|
|
|
$
|
46
|
|
Acquired intangibles
amortization
|
|
32
|
|
|
33
|
|
Adjusted
amortization
|
|
$
|
14
|
|
|
$
|
13
|
|
Adjusted operating loss, adjusted EBITDA, adjusted operating
loss margin percentage and adjusted EBITDA margin percentage for
the three months ended May 31, 2021
and May 31, 2020 are reflected in the
table below.
For the Three
Months Ended (in millions)
|
|
May 31,
2021
|
|
May 31,
2020
|
Operating
loss
|
|
$
|
(58)
|
|
|
$
|
(645)
|
|
Non-GAAP adjustments
to operating loss
|
|
|
|
|
Restructuring
charges
|
|
—
|
|
|
1
|
|
Stock compensation
expense
|
|
7
|
|
|
14
|
|
Debenture fair value
adjustment
|
|
(4)
|
|
|
1
|
|
Acquired intangibles
amortization
|
|
32
|
|
|
33
|
|
Goodwill impairment
charge
|
|
—
|
|
|
594
|
|
Total non-GAAP
adjustments to operating loss
|
|
35
|
|
|
643
|
|
Adjusted operating
loss
|
|
(23)
|
|
|
(2)
|
|
Amortization
|
|
49
|
|
|
50
|
|
Acquired intangibles
amortization
|
|
(32)
|
|
|
(33)
|
|
Adjusted
EBITDA
|
|
$
|
(6)
|
|
|
$
|
15
|
|
|
|
|
|
|
Revenue
|
|
$
|
174
|
|
|
$
|
206
|
|
Adjusted operating
loss margin % (1)
|
|
(13%)
|
|
|
(1%)
|
|
Adjusted EBITDA
margin % (2)
|
|
(3%)
|
|
|
7%
|
|
______________________________
(1)
|
Adjusted operating
loss margin % is calculated by dividing adjusted operating loss by
revenue
|
(2)
|
Adjusted EBITDA
margin % is calculated by dividing adjusted EBITDA by
revenue
|
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SOURCE BlackBerry Limited