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1 | BlackBerry Reports Software and Services Growth of 106 Percent for Q4 and 113 Percent for Fiscal 2016 |
2 | BlackBerry Supplemental Financial Information |
• | Non-GAAP total revenue of $487 million |
• | Non-GAAP software and services revenue of $153 million, up 106% percent for the same quarter year over year, allowing software and services revenue to grow to $527 million in FY 2016 |
• | Adjusted EBITDA of $78 million |
• | Cash and investments balance of $2.62 billion at the end of the fiscal quarter |
• | Non-GAAP loss of $(0.03) per share |
• | Unveiled a new QNX software platform to enable automotive companies to build a full range of secured automated driving systems and in-car acoustics |
• | Showcased at CES, the Internet of Things (IoT) over-the-air software platform as well as BlackBerry Radar, the IoT asset tracking device and software interface |
• | Launched five secure enterprise mobility management suites, combined complementary BlackBerry and Good capabilities, to provide a holistic management, messaging, collaboration, application enablement and content management platform |
• | Launched a cybersecurity consulting service to help customers assess and mitigate risks; recently acquired Encription Limited to accelerate these efforts, especially for the connected car and IoT industries |
Q4 Fiscal 2016 Non-GAAP Adjustments | For the Three Months Ended February 29, 2016 (in millions) | |||||||||||||||||||
Income statement location | Gross margin (before taxes)(1) | Gross margin % (before taxes)(1) | Loss before income taxes | Net loss | Basic loss per share | |||||||||||||||
As reported | $ | 210 | 45.3 | % | $ | (256 | ) | $ | (238 | ) | $ | (0.45 | ) | |||||||
Debentures fair value adjustment(2) | Debentures fair value adjustment | — | — | % | (40 | ) | (40 | ) | ||||||||||||
RAP charges (3) | Cost of sales | 4 | 0.8 | % | 4 | 4 | ||||||||||||||
RAP charges (3) | Research and development | — | — | % | 18 | 18 | ||||||||||||||
RAP charges (3) | Selling, marketing and administration | — | — | % | 158 | 158 | ||||||||||||||
CORE program charges(4) | Selling, marketing and administration | — | — | % | 2 | 2 | ||||||||||||||
Software deferred revenue acquired(5) | Revenue | 23 | 2.6 | % | 23 | 23 | ||||||||||||||
Stock compensation expense(6) | Research and development | — | — | % | 5 | 5 | ||||||||||||||
Stock compensation expense(6) | Selling, marketing and administration | — | — | % | 12 | 12 | ||||||||||||||
Acquired intangibles amortization(7) | Amortization | — | — | % | 28 | 28 | ||||||||||||||
Business acquisition and integration costs(8) | Selling, marketing and administration | — | — | % | 10 | 10 | ||||||||||||||
$ | 237 | 48.7 | % | $ | (36 | ) | $ | (18 | ) | $ | (0.03 | ) |
(1) | During the fourth quarter of fiscal 2016, the Company reported GAAP gross margin of $210 million or 45.3% of revenue. Excluding the impact of the resource alignment program (“RAP”) charges included in cost of sales and software deferred revenue acquired included in revenue, the non-GAAP gross margin was $237 million or 48.7% of revenue. |
(2) | During the fourth quarter of fiscal 2016, the Company recorded the Q4 Fiscal 2016 Debentures Fair Value Adjustment of $40 million. This adjustment was presented on a separate line in the Consolidated Statements of Operations. |
(3) | During the fourth quarter of fiscal 2016, the Company incurred charges related to the RAP of approximately $180 million pre-tax and after tax, of which $4 million were included in cost of sales, $18 million were included in research and development and $158 million were included in selling, marketing and administration expenses. |
(4) | During the fourth quarter of fiscal 2016, the Company incurred charges related to the CORE program of $2 million, which were included in selling, marketing and administration expenses. |
(5) | During the fourth quarter of fiscal 2016, the Company recorded software deferred revenue acquired but not recognized due to business combination accounting rules of $23 million, which were included in revenue. |
(6) | During the fourth quarter of fiscal 2016, the Company recorded stock compensation expense of $17 million, of which $5 million were included in research and development, and $12 million were included in selling, marketing and administration expenses. |
(7) | During the fourth quarter of fiscal 2016, the Company recorded amortization of intangible assets acquired through business combinations of $28 million, which were included in amortization expense. |
(8) | During the fourth quarter of fiscal 2016, the Company recorded business acquisition and integration costs incurred through business combinations of $10 million, which were included in selling, marketing and administration expenses. |
For the quarters ended | |||||||||||||||||||||||||||||||||||
February 29, 2016 | November 28, 2015 | August 29, 2015 | May 30, 2015 | February 28, 2015 | |||||||||||||||||||||||||||||||
North America | $ | 216 | 46.5 | % | $ | 275 | 50.2 | % | $ | 176 | 36.0 | % | $ | 285 | 43.3 | % | $ | 205 | 31.0 | % | |||||||||||||||
Europe, Middle East and Africa | 175 | 37.7 | % | 194 | 35.4 | % | 202 | 41.2 | % | 245 | 37.2 | % | 283 | 42.9 | % | ||||||||||||||||||||
Latin America | 18 | 3.9 | % | 24 | 4.4 | % | 33 | 6.7 | % | 42 | 6.4 | % | 60 | 9.1 | % | ||||||||||||||||||||
Asia Pacific | 55 | 11.9 | % | 55 | 10.0 | % | 79 | 16.1 | % | 86 | 13.1 | % | 112 | 17.0 | % | ||||||||||||||||||||
Total | $ | 464 | 100.0 | % | $ | 548 | 100.0 | % | $ | 490 | 100.0 | % | $ | 658 | 100.0 | % | $ | 660 | 100.0 | % |
For the three months ended | For the years ended | |||||||||||||||||||
February 29, 2016 | November 28, 2015 | February 28, 2015 | February 29, 2016 | February 28, 2015 | ||||||||||||||||
Revenue | $ | 464 | $ | 548 | $ | 660 | $ | 2,160 | $ | 3,335 | ||||||||||
Cost of sales | ||||||||||||||||||||
Cost of sales | 251 | 304 | 311 | 1,186 | 1,669 | |||||||||||||||
Inventory write-down | 3 | 9 | 41 | 36 | 95 | |||||||||||||||
Supply commitment charges | — | (1 | ) | (10 | ) | (3 | ) | (33 | ) | |||||||||||
254 | 312 | 342 | 1,219 | 1,731 | ||||||||||||||||
Gross margin | 210 | 236 | 318 | 941 | 1,604 | |||||||||||||||
Gross margin % | 45.3 | % | 43.1 | % | 48.2 | % | 43.6 | % | 48.1 | % | ||||||||||
Operating expenses | ||||||||||||||||||||
Research and development | 108 | 100 | 134 | 469 | 711 | |||||||||||||||
Selling, marketing and administration | 179 | 175 | 138 | 712 | 904 | |||||||||||||||
Amortization | 77 | 68 | 68 | 277 | 298 | |||||||||||||||
Abandonment/impairment of long-lived assets | 127 | 2 | 34 | 136 | 34 | |||||||||||||||
Debentures fair value adjustment | (40 | ) | (5 | ) | 50 | (430 | ) | 80 | ||||||||||||
451 | 340 | 424 | 1,164 | 2,027 | ||||||||||||||||
Operating loss | (241 | ) | (104 | ) | (106 | ) | (223 | ) | (423 | ) | ||||||||||
Investment income (loss), net | (15 | ) | (16 | ) | 105 | (59 | ) | 38 | ||||||||||||
Loss before income taxes | (256 | ) | (120 | ) | (1 | ) | (282 | ) | (385 | ) | ||||||||||
Recovery of income taxes | (18 | ) | (31 | ) | (29 | ) | (74 | ) | (81 | ) | ||||||||||
Net income (loss) | $ | (238 | ) | $ | (89 | ) | $ | 28 | $ | (208 | ) | $ | (304 | ) | ||||||
Earnings (loss) per share | ||||||||||||||||||||
Basic | $ | (0.45 | ) | $ | (0.17 | ) | $ | 0.05 | $ | (0.40 | ) | $ | (0.58 | ) | ||||||
Diluted | $ | (0.45 | ) | $ | (0.17 | ) | $ | 0.05 | $ | (0.86 | ) | $ | (0.58 | ) | ||||||
Weighted-average number of common shares outstanding (000’s) | ||||||||||||||||||||
Basic | 524,627 | 525,103 | 528,685 | 526,303 | 527,684 | |||||||||||||||
Diluted | 524,627 | 525,103 | 528,685 | 651,303 | 527,684 | |||||||||||||||
Total common shares outstanding (000’s) | 521,172 | 525,701 | 528,802 | 521,172 | 528,802 |
As at | February 29, 2016 | February 28, 2015 | ||||||
Assets | ||||||||
Current | ||||||||
Cash and cash equivalents | $ | 957 | $ | 1,233 | ||||
Short-term investments | 1,420 | 1,658 | ||||||
Accounts receivable, net | 338 | 503 | ||||||
Other receivables | 51 | 97 | ||||||
Inventories | 143 | 122 | ||||||
Income taxes receivable | — | 169 | ||||||
Other current assets | 102 | 375 | ||||||
Deferred income tax asset | — | 10 | ||||||
3,011 | 4,167 | |||||||
Long-term investments | 197 | 316 | ||||||
Restricted cash | 50 | 59 | ||||||
Property, plant and equipment, net | 412 | 556 | ||||||
Goodwill | 618 | 85 | ||||||
Intangible assets, net | 1,213 | 1,375 | ||||||
Deferred income tax asset | 33 | — | ||||||
$ | 5,534 | $ | 6,558 | |||||
Liabilities | ||||||||
Current | ||||||||
Accounts payable | $ | 270 | $ | 235 | ||||
Accrued liabilities | 368 | 667 | ||||||
Income taxes payable | 9 | — | ||||||
Deferred revenue | 392 | 470 | ||||||
1,039 | 1,372 | |||||||
Long-term debt | 1,277 | 1,707 | ||||||
Deferred income tax liability | 10 | 48 | ||||||
2,326 | 3,127 | |||||||
Shareholders’ equity | ||||||||
Capital stock and additional paid-in capital | 2,448 | 2,444 | ||||||
Retained earnings | 768 | 1,010 | ||||||
Accumulated other comprehensive loss | (8 | ) | (23 | ) | ||||
3,208 | 3,431 | |||||||
$ | 5,534 | $ | 6,558 |
For the years ended | ||||||||
February 29, 2016 | February 28, 2015 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (208 | ) | $ | (304 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Amortization | 616 | 694 | ||||||
Deferred income taxes | (105 | ) | 62 | |||||
Stock-based compensation | 60 | 50 | ||||||
Abandonment/impairment of long-lived assets | 136 | 34 | ||||||
Loss on disposal of property, plant and equipment | 59 | 135 | ||||||
Debentures fair value adjustment | (430 | ) | 80 | |||||
Other | 16 | 3 | ||||||
Net changes in working capital items | 113 | 59 | ||||||
Net cash provided by operating activities | 257 | 813 | ||||||
Cash flows from investing activities | ||||||||
Acquisition of long-term investments | (326 | ) | (802 | ) | ||||
Proceeds on sale or maturity of long-term investments | 301 | 515 | ||||||
Acquisition of property, plant and equipment | (32 | ) | (87 | ) | ||||
Proceeds on sale of property, plant and equipment | 4 | 348 | ||||||
Acquisition of intangible assets | (70 | ) | (421 | ) | ||||
Business acquisitions, net of cash acquired | (698 | ) | (119 | ) | ||||
Acquisition of short-term investments | (2,764 | ) | (2,949 | ) | ||||
Proceeds on sale or maturity of short-term investments | 3,146 | 2,342 | ||||||
Net cash used in investing activities | (439 | ) | (1,173 | ) | ||||
Cash flows from financing activities | ||||||||
Issuance of common shares | 4 | 6 | ||||||
Excess tax benefit (deficiency) related to stock-based compensation | (1 | ) | 8 | |||||
Sale of treasury stock | — | 61 | ||||||
Common shares repurchased | (93 | ) | — | |||||
Transfer from (to) restricted cash | 12 | (59 | ) | |||||
Net cash provided by (used in) financing activities | (78 | ) | 16 | |||||
Effect of foreign exchange loss on cash and cash equivalents | (16 | ) | (2 | ) | ||||
Net decrease in cash and cash equivalents for the year | (276 | ) | (346 | ) | ||||
Cash and cash equivalents, beginning of year | 1,233 | 1,579 | ||||||
Cash and cash equivalents, end of year | $ | 957 | $ | 1,233 | ||||
As at | February 29, 2016 | November 28, 2015 | ||||||
Cash and cash equivalents | $ | 957 | $ | 1,123 | ||||
Short-term investments | 1,420 | 1,175 | ||||||
Long-term investments | 197 | 350 | ||||||
Restricted cash | 50 | 58 | ||||||
$ | 2,624 | $ | 2,706 |
GAAP Income Statement (Three Months Ended) | Q1 FY15 | Q2 FY15 | Q3 FY15 | Q4 FY15 | FY15 | Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | |||||||||||||||||||||||||||||
Software and services | $ | 54 | $ | 62 | $ | 57 | $ | 74 | $ | 247 | $ | 137 | $ | 73 | $ | 154 | $ | 130 | $ | 494 | |||||||||||||||||||
Hardware | 379 | 418 | 361 | 274 | 1,432 | 263 | 201 | 214 | 184 | 862 | |||||||||||||||||||||||||||||
Service access fees | 519 | 421 | 365 | 301 | 1,606 | 252 | 211 | 173 | 143 | 779 | |||||||||||||||||||||||||||||
Other | 14 | 15 | 10 | 11 | 50 | 6 | 5 | 7 | 7 | 25 | |||||||||||||||||||||||||||||
Revenue | 966 | 916 | 793 | 660 | 3,335 | 658 | 490 | 548 | 464 | 2,160 | |||||||||||||||||||||||||||||
Cost of sales | |||||||||||||||||||||||||||||||||||||||
Cost of sales | 502 | 491 | 365 | 311 | 1,669 | 329 | 301 | 304 | 251 | 1,186 | |||||||||||||||||||||||||||||
Inventory write-down | 23 | 7 | 24 | 41 | 95 | 21 | 4 | 9 | 3 | 36 | |||||||||||||||||||||||||||||
Supply commitment recovery | (10 | ) | (7 | ) | (6 | ) | (10 | ) | (33 | ) | (2 | ) | — | (1 | ) | — | (3 | ) | |||||||||||||||||||||
Total cost of sales | 515 | 491 | 383 | 342 | 1,731 | 348 | 305 | 312 | 254 | 1,219 | |||||||||||||||||||||||||||||
Gross margin | 451 | 425 | 410 | 318 | 1,604 | 310 | 185 | 236 | 210 | 941 | |||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||||||
Research and development | 237 | 186 | 154 | 134 | 711 | 139 | 122 | 100 | 108 | 469 | |||||||||||||||||||||||||||||
Selling, marketing and administration | 400 | 195 | 171 | 138 | 904 | 173 | 186 | 175 | 179 | 712 | |||||||||||||||||||||||||||||
Amortization | 81 | 75 | 74 | 68 | 298 | 65 | 67 | 68 | 77 | 277 | |||||||||||||||||||||||||||||
Abandonment/impairment of long-lived assets | — | — | — | 34 | 34 | 1 | 5 | 2 | 127 | 136 | |||||||||||||||||||||||||||||
Debentures fair value adjustment | (287 | ) | 167 | 150 | 50 | 80 | (157 | ) | (228 | ) | (5 | ) | (40 | ) | (430 | ) | |||||||||||||||||||||||
Total operating expenses | 431 | 623 | 549 | 424 | 2,027 | 221 | 152 | 340 | 451 | 1,164 | |||||||||||||||||||||||||||||
Operating income (loss) | 20 | (198 | ) | (139 | ) | (106 | ) | (423 | ) | 89 | 33 | (104 | ) | (241 | ) | (223 | ) | ||||||||||||||||||||||
Investment income (loss), net | (26 | ) | (20 | ) | (21 | ) | 105 | 38 | (16 | ) | (12 | ) | (16 | ) | (15 | ) | (59 | ) | |||||||||||||||||||||
Income (loss) before income taxes | (6 | ) | (218 | ) | (160 | ) | (1 | ) | (385 | ) | 73 | 21 | (120 | ) | (256 | ) | (282 | ) | |||||||||||||||||||||
Provision for (recovery of) income taxes | (29 | ) | (11 | ) | (12 | ) | (29 | ) | (81 | ) | 5 | (30 | ) | (31 | ) | (18 | ) | (74 | ) | ||||||||||||||||||||
Net income (loss) | $ | 23 | $ | (207 | ) | $ | (148 | ) | $ | 28 | $ | (304 | ) | $ | 68 | $ | 51 | $ | (89 | ) | $ | (238 | ) | $ | (208 | ) | |||||||||||||
Earnings (loss) per share | |||||||||||||||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.04 | $ | (0.39 | ) | $ | (0.28 | ) | $ | 0.05 | $ | (0.58 | ) | $ | 0.13 | $ | 0.10 | $ | (0.17 | ) | $ | (0.45 | ) | $ | (0.40 | ) | |||||||||||||
Diluted earnings (loss) per share | $ | (0.37 | ) | $ | (0.39 | ) | $ | (0.28 | ) | $ | 0.05 | $ | (0.58 | ) | $ | (0.10 | ) | $ | (0.24 | ) | $ | (0.17 | ) | $ | (0.45 | ) | $ | (0.86 | ) | ||||||||||
Weighted-average number of common shares outstanding (000’s) | |||||||||||||||||||||||||||||||||||||||
Basic | 526,742 | 527,218 | 528,090 | 528,685 | 527,684 | 529,235 | 526,314 | 525,103 | 524,627 | 526,303 | |||||||||||||||||||||||||||||
Diluted | 658,228 | 527,218 | 528,090 | 543,556 | 527,684 | 670,539 | 667,321 | 525,103 | 524,627 | 651,303 | |||||||||||||||||||||||||||||
Non-GAAP Adjustments (Three Months Ended, Pre-Tax) | Q1 FY15 | Q2 FY15 | Q3 FY15 | Q4 FY15 | FY15 | Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | |||||||||||||||||||||||||||||
Rockstar sale adjustment | $ | — | $ | — | $ | — | $ | (115 | ) | $ | (115 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Debentures fair value adjustment | (287 | ) | 167 | 150 | 50 | 80 | (157 | ) | (228 | ) | (5 | ) | (40 | ) | (430 | ) | |||||||||||||||||||||||
CORE program charges (recoveries) | 226 | 33 | 5 | 58 | 322 | 9 | 6 | (6 | ) | 2 | 11 | ||||||||||||||||||||||||||||
RAP charges | — | — | — | — | — | 52 | 79 | 33 | 180 | 344 | |||||||||||||||||||||||||||||
Software deferred revenue acquired | — | — | — | — | — | — | 1 | 9 | 23 | 33 | |||||||||||||||||||||||||||||
Stock compensation expense | 13 | 8 | 14 | 14 | 49 | 14 | 14 | 14 | 17 | 60 | |||||||||||||||||||||||||||||
Acquired intangibles amortization | 9 | 10 | 10 | 9 | 38 | 9 | 11 | 18 | 28 | 66 | |||||||||||||||||||||||||||||
Business acquisition and integration costs | — | — | 2 | 1 | 3 | 1 | — | 11 | 10 | 22 | |||||||||||||||||||||||||||||
Total Non-GAAP Adjustments (Three Months Ended, Pre-Tax) | $ | (39 | ) | $ | 218 | $ | 181 | $ | 17 | $ | 377 | $ | (72 | ) | $ | (117 | ) | $ | 74 | $ | 220 | $ | 106 | ||||||||||||||||
Non-GAAP Adjustments (Three Months Ended, After-Tax) | Q1 FY15 | Q2 FY15 | Q3 FY15 | Q4 FY15 | FY15 | Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | |||||||||||||||||||||||||||||
Rockstar sale adjustment | $ | — | $ | — | $ | — | $ | (115 | ) | $ | (115 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Debentures fair value adjustment | (287 | ) | 167 | 150 | 50 | 80 | (157 | ) | (228 | ) | (5 | ) | (40 | ) | (430 | ) | |||||||||||||||||||||||
CORE program charges (recoveries) | 204 | 29 | 4 | 57 | 294 | 9 | 6 | (6 | ) | 2 | 11 | ||||||||||||||||||||||||||||
RAP charges | — | — | — | — | — | 52 | 79 | 33 | 180 | 344 | |||||||||||||||||||||||||||||
Software deferred revenue acquired | — | — | — | — | — | — | 1 | 9 | 23 | 33 | |||||||||||||||||||||||||||||
Stock compensation expense | 13 | 8 | 14 | 14 | 49 | 14 | 14 | 14 | 17 | 60 | |||||||||||||||||||||||||||||
Acquired intangibles amortization | 9 | 10 | 10 | 9 | 38 | 9 | 11 | 18 | 28 | 66 | |||||||||||||||||||||||||||||
Business acquisition and integration costs | — | — | 2 | 1 | 3 | 1 | — | 11 | 10 | 22 | |||||||||||||||||||||||||||||
Total Non-GAAP Adjustments (Three Months Ended, After-Tax) | $ | (61 | ) | $ | 214 | $ | 180 | $ | 16 | $ | 349 | $ | (72 | ) | $ | (117 | ) | $ | 74 | $ | 220 | $ | 106 | ||||||||||||||||
Non-GAAP Gross Profit | Q1 FY15 | Q2 FY15 | Q3 FY15 | Q4 FY15 | FY15 | Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | |||||||||||||||||||||||||||||
GAAP revenue | $ | 966 | $ | 916 | $ | 793 | $ | 660 | $ | 3,335 | $ | 658 | $ | 490 | $ | 548 | $ | 464 | $ | 2,160 | |||||||||||||||||||
Software deferred revenue acquired | — | — | — | — | — | — | 1 | 9 | 23 | 33 | |||||||||||||||||||||||||||||
Non-GAAP revenue | 966 | 916 | 793 | 660 | 3,335 | 658 | 491 | 557 | 487 | 2,193 | |||||||||||||||||||||||||||||
Total cost of sales | (515 | ) | (491 | ) | (383 | ) | (342 | ) | (1,731 | ) | (348 | ) | (305 | ) | (312 | ) | (254 | ) | (1,219 | ) | |||||||||||||||||||
Non-GAAP adjustments to cost of sales | 13 | 10 | — | 2 | 25 | 21 | 15 | 5 | 4 | 45 | |||||||||||||||||||||||||||||
Non-GAAP Gross Profit | $ | 464 | $ | 435 | $ | 410 | $ | 320 | $ | 1,629 | $ | 331 | $ | 201 | $ | 250 | $ | 237 | $ | 1,019 | |||||||||||||||||||
Adjusted EBITDA | Q1 FY15 | Q2 FY15 | Q3 FY15 | Q4 FY15 | FY15 | Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | |||||||||||||||||||||||||||||
GAAP operating income (loss) | $ | 20 | $ | (198 | ) | $ | (139 | ) | $ | (106 | ) | $ | (423 | ) | $ | 89 | $ | 33 | $ | (104 | ) | $ | (241 | ) | $ | (223 | ) | ||||||||||||
Non-GAAP adjustments to operating income | (39 | ) | 218 | 181 | 132 | 492 | (72 | ) | (117 | ) | 74 | 220 | 106 | ||||||||||||||||||||||||||
Non-GAAP operating income (loss) | (19 | ) | 20 | 42 | 26 | 69 | 17 | (84 | ) | (30 | ) | (21 | ) | (117 | ) | ||||||||||||||||||||||||
Amortization | 191 | 171 | 170 | 162 | 694 | 164 | 163 | 162 | 127 | 616 | |||||||||||||||||||||||||||||
Acquired intangibles amortization | (9 | ) | (10 | ) | (10 | ) | (9 | ) | (38 | ) | (9 | ) | (11 | ) | (18 | ) | (28 | ) | (66 | ) | |||||||||||||||||||
Adjusted EBITDA | $ | 163 | $ | 181 | $ | 202 | $ | 179 | $ | 725 | $ | 172 | $ | 68 | $ | 114 | $ | 78 | $ | 433 | |||||||||||||||||||
Reconciliation from GAAP Net Income (Loss) to Non-GAAP Income (Loss) and Non-GAAP Earnings (Loss) per Share | Q1 FY15 | Q2 FY15 | Q3 FY15 | Q4 FY15 | FY15 | Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | |||||||||||||||||||||||||||||
GAAP net income (loss) | $ | 23 | $ | (207 | ) | $ | (148 | ) | $ | 28 | $ | (304 | ) | $ | 68 | $ | 51 | $ | (89 | ) | $ | (238 | ) | $ | (208 | ) | |||||||||||||
Total Non-GAAP adjustments (three months ended, after-tax) | (61 | ) | 214 | 180 | 16 | 349 | (72 | ) | (117 | ) | 74 | 220 | 106 | ||||||||||||||||||||||||||
Non-GAAP Net Income (Loss) | $ | (38 | ) | $ | 7 | $ | 32 | $ | 44 | $ | 45 | $ | (4 | ) | $ | (66 | ) | $ | (15 | ) | $ | (18 | ) | $ | (102 | ) | |||||||||||||
Non-GAAP Earnings (Loss) per Share | $ | (0.07 | ) | $ | 0.01 | $ | 0.06 | $ | 0.08 | $ | 0.08 | $ | (0.01 | ) | $ | (0.13 | ) | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.19 | ) | |||||||||||||
Shares outstanding for Non-GAAP income (loss) per share reconciliation | 526,742 | 537,959 | 540,400 | 543,556 | 542,123 | 529,235 | 526,314 | 525,103 | 524,627 | 526,303 |
Q1 FY15 | Q2 FY15 | Q3 FY15 | Q4 FY15 | FY15 | Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | ||||||||||||||||||||||||||||||
Cost of sales | $ | 12 | $ | 10 | $ | — | $ | 1 | $ | 23 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Research and development | 41 | 19 | 4 | 6 | 70 | 2 | — | — | — | 2 | |||||||||||||||||||||||||||||
Selling, marketing and administration | 173 | 4 | 1 | 51 | 229 | 7 | 6 | (6 | ) | 2 | 9 | ||||||||||||||||||||||||||||
Total CORE Program Charges (Recoveries) | $ | 226 | $ | 33 | $ | 5 | $ | 58 | $ | 322 | $ | 9 | $ | 6 | $ | (6 | ) | $ | 2 | $ | 11 |
Q1 FY15 | Q2 FY15 | Q3 FY15 | Q4 FY15 | FY15 | Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | ||||||||||||||||||||||||||||||
Cost of sales | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 21 | $ | 14 | $ | 5 | $ | 4 | $ | 44 | |||||||||||||||||||
Research and development | — | — | — | — | — | 13 | 14 | 2 | 18 | 47 | |||||||||||||||||||||||||||||
Selling, marketing and administration | — | — | — | — | — | 18 | 51 | 26 | 158 | 253 | |||||||||||||||||||||||||||||
Total RAP Charges | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 52 | $ | 79 | $ | 33 | $ | 180 | $ | 344 |
Q1 FY15 | Q2 FY15 | Q3 FY15 | Q4 FY15 | FY15 | Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | ||||||||||||||||||||||||||||||
In cost of sales | |||||||||||||||||||||||||||||||||||||||
Property, plant and equipment | $ | 27 | $ | 16 | $ | 14 | $ | 16 | $ | 73 | $ | 16 | $ | 10 | $ | 13 | 12 | $ | 51 | ||||||||||||||||||||
Intangible assets | 83 | 80 | 82 | 78 | 323 | 83 | 86 | 81 | 38 | 288 | |||||||||||||||||||||||||||||
Total in cost of sales | 110 | 96 | 96 | 94 | 396 | 99 | 96 | 94 | 50 | 339 | |||||||||||||||||||||||||||||
In operating expenses amortization | |||||||||||||||||||||||||||||||||||||||
Property, plant and equipment | 33 | 28 | 27 | 23 | 111 | 20 | 22 | 16 | 15 | 73 | |||||||||||||||||||||||||||||
Intangible assets | 48 | 47 | 47 | 45 | 187 | 45 | 45 | 52 | 62 | 204 | |||||||||||||||||||||||||||||
Total in operating expenses amortization | 81 | 75 | 74 | 68 | 298 | 65 | 67 | 68 | 77 | 277 | |||||||||||||||||||||||||||||
Total amortization | |||||||||||||||||||||||||||||||||||||||
Property, plant and equipment | 60 | 44 | 41 | 39 | 184 | 36 | 32 | 29 | 27 | 124 | |||||||||||||||||||||||||||||
Intangible assets | 131 | 127 | 129 | 123 | 510 | 128 | 131 | 133 | 100 | 492 | |||||||||||||||||||||||||||||
Total amortization | $ | 191 | $ | 171 | $ | 170 | $ | 162 | $ | 694 | $ | 164 | $ | 163 | $ | 162 | $ | 127 | $ | 616 |
BlackBerry Limited | ||||||
(Registrant) | ||||||
Date: | April 1, 2016 | By: | /s/ James Yersh | |||
Name: | James Yersh | |||||
Title: | Chief Financial Officer |