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BlackBerry Reports Q1 Fiscal 2014 Results – Join the Call @ 8AM EST

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BlackBerry just reported their Q1 Fiscal 2014 results and the numbers are in. They reported shipping 6.8 million smartphones without a breakdown for BlackBerry 10. They also increased their cash holdings by $200 million though they did report an overall loss. The interesting thing that stuck out to me is that US revenue is going up and balancing out compared to other regions. BlackBerry stock is going to be on a rollercoaster today since BlackBerry delivered almost exactly what their outlook was last quarter but missed analyst estimates.

Check out the details below or join the call at 8 am ET by dialing 1-800-814-4859 or through your BlackBerry 10 smartphone, personal computer or BlackBerry PlayBook tablet at this link.

BlackBerry Reports First Quarter Fiscal 2014 Results

WATERLOO, ONTARIO–(Marketwired – June 28, 2013) – Research In Motion Limited (doing business as BlackBerry(R)) (NASDAQ:BBRY)(TSX:BB), a world leader in the mobile communications market, today reported first quarter results for the three months ended June 1, 2013 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).
Q1 Highlights:

--  Revenue $3.1 billion, up 15% sequentially from the previous quarter 
--  North America revenue grows sequentially 30%, APAC revenue grows 35%,
    EMEA revenue grows 9% 
--  LATAM revenue declines 6% as Venezuela foreign currency restrictions
    negatively impact $72 million of service revenue recognition in the
    first quarter; company gross margins negatively impacted by 2% 
--  Shipments of 6.8 million smartphones, up 13% sequentially from the
    previous quarter 
--  GAAP loss from continuing operations of $84 million, or $0.16 per share 
--  Adjusted loss from continuing operations of $67 million, or $0.13 per
    share 
--  Venezuela foreign currency restrictions impact reported GAAP earnings
    and adjusted earnings by approximately $0.10 per share; excluding such
    impact, adjusted earnings in-line with previously provided outlook of
    approaching breakeven financial results 
--  Cash flow from operations of $630 million 
--  Cash and investments balance of $3.1 billion

Q1 Results

Revenue for the first quarter of fiscal 2014 was $3.1 billion, up 15% from $2.7 billion in the previous quarter and up 9% from $2.8 billion in the same quarter of fiscal 2013. The revenue breakdown for the quarter was approximately 71% for hardware, 26% for service and 3% for software and other revenue. During the quarter, the Company shipped 6.8 million BlackBerry smartphones and approximately 100,000 BlackBerry PlayBook tablets.

GAAP loss from continuing operations for the quarter was $84 million, or $0.16 per share diluted, compared with a GAAP income from continuing operations of $94 million, or diluted earnings per share of $0.18, in the prior quarter and GAAP loss from continuing operations of $510 million, or $0.97 per share diluted, in the same quarter last year.

Adjusted loss from continuing operations for the first quarter was $67 million, or $0.13 per share diluted. Adjusted loss from continuing operations and adjusted diluted loss per share exclude the impact of pre-tax charges of $26 million ($17 million on an after tax basis) related to the Cost Optimization and Resource Efficiency ("CORE") program. This impact on GAAP loss from continuing operations and diluted loss per share from continuing operations are summarized in the table below.

The total of cash, cash equivalents, short-term and long-term investments was $3.1 billion as of June 1, 2013, compared to $2.9 billion at the end of the previous quarter, an increase of approximately $200 million from the prior quarter. Cash flow from operations in the first quarter was approximately $630 million. Uses of cash included intangible asset additions of approximately $335 million and capital expenditures of approximately $83 million.

"During the first quarter, we continued to focus our efforts on the global roll out of the BlackBerry 10 platform," said Thorsten Heins, President and CEO of BlackBerry. "We are still in the early stages of this launch, but already, the BlackBerry 10 platform and BlackBerry Enterprise Service 10 are proving themselves to customers to be very secure, flexible and dynamic mobile computing solutions. Over the next three quarters, we will be increasing our investments to support the roll out of new products and services, and to demonstrate that BlackBerry has established itself as a leading and vibrant player in next generation mobile computing solutions for both consumer and enterprise customers."

Outlook

The smartphone market remains highly competitive, making it difficult to estimate units, revenue and levels of profitability. Throughout the remainder of fiscal 2014, the Company will invest in BlackBerry 10 smartphone launches, and the roll out of BlackBerry Enterprise Service 10, to continue to establish the new BlackBerry 10 platform in the marketplace. The Company will also invest resources to evolve BlackBerry Messenger into a leading cross platform mobile social messaging application, and launch other revenue initiatives associated with new services and emerging mobile computing opportunities. Based on the competitive market dynamics and these investments, the company anticipates it will generate an operating loss in the second quarter. The company will also continue to implement the cost savings and process-improving initiatives it started last year, in order to drive greater efficiency throughout the company, and redirect capital from these savings to areas of investment that will drive future revenue growth.

Reconciliation of GAAP loss from continuing operations before income taxes, loss from continuing operations and diluted loss per share from continuing operations to adjusted loss from continuing operations before income taxes, adjusted loss from continuing operations and adjusted diluted loss per share from continuing operations:

(United States dollars, in millions except per share data)

                                                 For the three months ended 
                                      --------------------------------------
                                                       CORE                 
As Reported:                                  GAAP   Charges(1)    Adjusted 
                                      --------------------------------------
                                                                            
Loss from continuing operations before                                      
 income taxes                          $      (164) $        26 $      (138)
                                                                            
Loss from continuing operations                (84)          17         (67)
                                                                            
                                      --------------------------------------
Diluted loss per share from continuing                                      
 operations                            $     (0.16) $      0.03 $     (0.13)
                                      --------------------------------------
                                      --------------------------------------
-----                                                                       
-    Adjusted loss from continuing operations and diluted loss per share    
     from continuing operations include the $72 million (approximately $50  
     million after tax or $0.10 per share) impact on service revenue        
     recognition of the Venezuela foreign currency restrictions noted above.

Note: Adjusted loss from continuing operations before tax, adjusted loss from continuing operations and adjusted diluted loss per share from continuing operations do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of adjusted loss from continuing operations before taxes, adjusted loss from continuing operations and adjusted diluted loss per share from continuing operations enables the Company and its shareholders to better assess the Company’s operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of the Company’s GAAP results.

(1) As part of the Company’s ongoing effort to streamline its operations and increase efficiency, the Company commenced the CORE program in March 2012. During the first quarter of fiscal 2014, the Company incurred approximately $26 million in total pre-tax charges related to the CORE program. Substantially all of the pre-tax charges are related to one-time employee termination benefits and facilities costs. During the first quarter of fiscal 2014, charges of approximately $10 million were included in research and development and charges of approximately $16 million were included in selling, marketing, and administration expenses.

Supplementary Geographic Revenue Breakdown

          Research In Motion Limited (doing business as BlackBerry)         
                    (United States dollars, in millions)                    
                              Revenue by Region                             
                                     For the quarter ended                  
                   ---------------------------------------------------------
                                                                            
                              June 1,           March 2,        December 1, 
                                 2013               2013               2012 
                   ---------------------------------------------------------
North America       $     761    24.8% $     587    21.9% $     647    23.7%
Europe, Middle East                                                         
 and Africa             1,343    43.7%     1,227    45.8%     1,160    42.5%
Latin America             449    14.6%       479    17.9%       535    19.6%
Asia Pacific              518    16.9%       385    14.4%       385    14.1%
                   ---------------------------------------------------------
Total               $   3,071   100.0% $   2,678   100.0% $   2,727   100.0%
                   ---------------------------------------------------------
                   ---------------------------------------------------------

                           For the quarter ended         
                   --------------------------------------
                                                         
                         September 1,            June 2, 
                                 2012               2012 
                   --------------------------------------
North America       $     868    30.3% $     794    28.3%
Europe, Middle East                                      
 and Africa             1,087    38.0%     1,029    36.6%
Latin America             520    18.2%       580    20.7%
Asia Pacific              386    13.5%       405    14.4%
                   --------------------------------------
Total               $   2,861   100.0% $   2,808   100.0%
                   --------------------------------------
                   --------------------------------------

Conference Call and Webcast

A conference call and live webcast will be held beginning at 8 am ET, which can be accessed by dialing 1-800-814-4859 or through your BlackBerry(R) 10 smartphone, personal computer or BlackBerry(R) PlayBook(TM) tablet at http://ca.blackberry.com/company/investors/events.html. A replay of the conference call will also be available at approximately 10 am by dialing (+1)416-640-1917 and entering pass code 4612565# or by clicking the link above on your BlackBerry(R) 10 smartphone, personal computer or BlackBerry(R) PlayBook(TM) tablet. This replay will be available until midnight ET July 12, 2013.

About BlackBerry

A global leader in wireless innovation, BlackBerry(R) revolutionized the mobile industry when it was introduced in 1999. Today, BlackBerry aims to inspire the success of our millions of customers around the world by continuously pushing the boundaries of mobile experiences. Founded in 1984 and based in Waterloo, Ontario, BlackBerry operates offices in North America, Europe, Asia Pacific and Latin America. Research In Motion announced that effective January 30, 2013, the Company would operate around the world under the iconic name BlackBerry. The legal name of the Company has not changed, but the Company will do business as BlackBerry pending approval of the official change by shareholders, which will be sought at the Company’s Annual General Meeting later in 2013. Effective Monday, February 4, 2013, the Company commenced trading under its new ticker symbols "BB" on the Toronto Stock Exchange and "BBRY" on the NASDAQ. For more information, visitwww.blackberry.com.

7 total comments on this postSubmit your comment!
  1. ugh now i’m going to have to read about takeover talks for the next few months again.

  2. 2.7M BB10 devices shipped. Not good, although the Q10 has not been on the market for long and the Q5 is just starting.

  3. Oh and they finally decided to no release BB10 on the PlayBook. smart business move, but a lot of customers are going to be disappointed. I hope they didn’t make any sort of official promise when selling devices.

    • yeah I saw it running on the PlayBook but there is a reason they upped the RAM on the current BB10 devices

      • Yep, but everybody with a Dev alpha has known about the problem for over a year, so why did BB keep people’s hopes up for so long?

        • Theory to say, PlayBook can have a special edition of BB10. That’s what they expect. But we all see BB decided not afford to make it happen. I see the potential in this sad story. Basically PlayBook seems to be the best in term of Battery, Stability, Security, HTML5… and now: PRICE among those same level. And i’m gonna do something with PlayBook, quite many PlayBooks indeed.

          • I would difinelty like to see a modified version of BB10 hit the PlayBook – even a watered down version. BlackBerry needs to reassure the people, especially the early adopters of PlayBook that they have not been abandoned.

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