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1 | BlackBerry Reports Record GAAP Gross Margin of 67%, Driven by Growth in Software and Services Revenue |
2 | BlackBerry Supplemental Financial Information |
• | GAAP Company total software and services revenues excluding IP increase 50% year over year |
• | Company raises full year non-GAAP EPS outlook |
• | Non-GAAP total revenue of $301 million; GAAP revenue of $289 million |
• | Non-GAAP Company total software and services revenues of $172 million; GAAP Company total software and services revenues of $160 million |
• | Record non-GAAP gross margin of 70%; Record GAAP gross margin of 67% |
• | Adjusted EBITDA of $37 million; positive for twelfth consecutive quarter |
• | Non-GAAP earnings per share of $0.02; GAAP EPS loss of ($0.22) |
• | Signed agreement with Ford Motor Company for expanded use of BlackBerry’s QNX and security software |
• | Entered into a long-term, global software licensing agreement with TCL Communication to design, manufacture, sell and support new BlackBerry-branded mobile devices running BlackBerry’s secure Android software and applications |
• | Launched the DTEK60, the latest Android device running BlackBerry’s industry-leading security software |
• | Achieved common criteria NIAP certification for BlackBerry 10.3.3, which is targeted for users in government and highly regulated industries |
• | Announced plans to launch a Federal Cybersecurity Operations Center to support FedRAMP and other government security certification initiatives; the center will be led by former U.S. Coast Guard CIO, Rear Admiral Bob Day Jr. (retired) |
• | After the quarter close, launched BlackBerry Secure, a comprehensive and fully integrated enterprise mobility platform that allows enterprises to increase security, productivity and collaboration, accelerate key business processes and reduce total cost of ownership |
• | After the quarter close, announced plans to launch the BlackBerry Innovation Center in Ottawa; the center will focus on developing secure software for connected cars and autonomous driving |
For the Three Months Ended November 30, 2016 (in millions) | |||||||||||||||||||||||||||||||
Software & Services | Mobility Solutions | SAF | Segment totals | Corporate unallocated | Subtotal | Non-GAAP adjustments (1) | Consolidated U.S. GAAP | ||||||||||||||||||||||||
Revenue | $ | 164 | $ | 70 | $ | 67 | $ | 301 | $ | — | $ | 301 | $ | (12 | ) | $ | 289 | ||||||||||||||
Cost of goods sold | 33 | 39 | 19 | 91 | — | 91 | 5 | 96 | |||||||||||||||||||||||
Gross margin | 131 | 31 | 48 | 210 | — | 210 | (17 | ) | 193 | ||||||||||||||||||||||
Operating expenses | 91 | 26 | 1 | 118 | 80 | 198 | 109 | 307 | |||||||||||||||||||||||
Operating income (loss) | $ | 40 | $ | 5 | $ | 47 | $ | 92 | $ | (80 | ) | $ | 12 | $ | (126 | ) | $ | (114 | ) |
Q3 Fiscal 2017 Non-GAAP Adjustments | For the Three Months Ended November 30, 2016 (in millions) | |||||||||||||||||||||||
Income statement location | Revenue | Gross margin (before taxes) | Gross margin % (before taxes) | Income (loss) before income taxes | Net income (loss) | Basic earnings (loss) per share | ||||||||||||||||||
As reported | $ | 289 | $ | 193 | 66.8 | % | $ | (118 | ) | $ | (117 | ) | $ | (0.22 | ) | |||||||||
Debentures fair value adjustment(2) | Debentures fair value adjustment | — | — | — | % | 2 | 2 | |||||||||||||||||
Write-down of assets held for sale (3) | Selling, marketing and administration | — | — | — | % | 42 | 42 | |||||||||||||||||
RAP charges (4) | Cost of sales | — | 5 | 1.7 | % | 5 | 5 | |||||||||||||||||
RAP charges (4) | Research and development | — | — | — | % | (1 | ) | (1 | ) | |||||||||||||||
RAP charges (4) | Selling, marketing and administration | — | — | — | % | 20 | 20 | |||||||||||||||||
CORE program recovery (5) | Selling, marketing and administration | — | — | — | % | (2 | ) | (2 | ) | |||||||||||||||
Software deferred revenue acquired (6) | Revenue (3) | 12 | 12 | 1.3 | % | 12 | 12 | |||||||||||||||||
Stock compensation expense (7) | Research and development | — | — | — | % | 4 | 4 | |||||||||||||||||
Stock compensation expense (7) | Selling, marketing and administration | — | — | — | % | 11 | 11 | |||||||||||||||||
Acquired intangibles amortization (8) | Amortization | — | — | — | % | 28 | 28 | |||||||||||||||||
Business acquisition and integration costs (9) | Selling, marketing and administration | — | — | — | % | 5 | 5 | |||||||||||||||||
Adjusted | $ | 301 | $ | 210 | 69.8 | % | $ | 8 | $ | 9 | $ | 0.02 |
(1) | During the third quarter of fiscal 2017, the Company reported GAAP gross margin of $193 million or 66.8% 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 $210 million, or 69.8% of revenue. |
(2) | During the third quarter of fiscal 2017, the Company recorded the Q3 Fiscal 2017 Debentures Fair Value Adjustment of $2 million. This adjustment was presented on a separate line in the Consolidated Statements of Operations. |
(3) | During the third quarter of fiscal 2017, the Company incurred charges related to the write-down of assets held for sale of $42 million. This adjustment was presented on a separate line in the Consolidated Statements of Operations. |
(4) | During the third quarter of fiscal 2017, the Company incurred charges related to the RAP of approximately $24 million, of which $5 million were included in cost of sale, a recovery of $1 million were included in research and development expense and $20 million were included in selling, marketing and administration expense. |
(5) | During the third quarter of fiscal 2017, the Company incurred recoveries related to the CORE program of $2 million, which were included in selling, marketing, and administration expenses. |
(6) | During the third quarter of fiscal 2017, the Company recorded software deferred revenue acquired but not recognized due to business combination accounting rules of $12 million, which were included in revenue. |
(7) | During the third quarter of fiscal 2017, the Company recorded stock compensation expense of $15 million, of which $4 million were included in research and development, and $11 million were included in selling, marketing and administration expenses. |
(8) | During the third quarter of fiscal 2017, the Company recorded amortization of intangible assets acquired through business combinations of $28 million, which were included in amortization expense. |
(9) | During the third quarter of fiscal 2017, the Company recorded business acquisition and integration costs incurred through business combinations of $5 million, which were included in selling, marketing and administration expenses. |
For the quarters ended | |||||||||||||||||||||||||||||||||||
November 30, 2016 | August 31, 2016 | May 31, 2016 | February 29, 2016 | November 28, 2015 | |||||||||||||||||||||||||||||||
North America | $ | 167 | 57.8 | % | $ | 190 | 56.9 | % | $ | 195 | 48.8 | % | $ | 216 | 46.5 | % | $ | 275 | 50.2 | % | |||||||||||||||
Europe, Middle East and Africa | 87 | 30.1 | % | 100 | 29.9 | % | 155 | 38.7 | % | 175 | 37.7 | % | 194 | 35.4 | % | ||||||||||||||||||||
Latin America | 7 | 2.4 | % | 13 | 3.9 | % | 10 | 2.5 | % | 18 | 3.9 | % | 24 | 4.4 | % | ||||||||||||||||||||
Asia Pacific | 28 | 9.7 | % | 31 | 9.3 | % | 40 | 10.0 | % | 55 | 11.9 | % | 55 | 10.0 | % | ||||||||||||||||||||
Total | $ | 289 | 100.0 | % | $ | 334 | 100.0 | % | $ | 400 | 100.0 | % | $ | 464 | 100.0 | % | $ | 548 | 100.0 | % |
For the three months ended | For the nine months ended | |||||||||||||||||||
November 30, 2016 | August 31, 2016 | November 28, 2015 | November 30, 2016 | November 28, 2015 | ||||||||||||||||
Revenue | $ | 289 | $ | 334 | $ | 548 | $ | 1,023 | $ | 1,696 | ||||||||||
Cost of sales | 96 | 236 | 312 | 578 | 965 | |||||||||||||||
Gross margin | 193 | 98 | 236 | 445 | 731 | |||||||||||||||
Gross margin % | 66.8 | % | 29.3 | % | 43.1 | % | 43.5 | % | 43.1 | % | ||||||||||
Operating expenses | ||||||||||||||||||||
Research and development | 75 | 85 | 100 | 249 | 361 | |||||||||||||||
Selling, marketing and administration | 145 | 139 | 177 | 416 | 542 | |||||||||||||||
Amortization | 43 | 44 | 68 | 141 | 200 | |||||||||||||||
Impairment of goodwill | — | — | — | 57 | — | |||||||||||||||
Impairment of long-lived assets | — | — | — | 501 | — | |||||||||||||||
Write-down of assets held for sale | 42 | 123 | — | 165 | — | |||||||||||||||
Debentures fair value adjustment | 2 | 62 | (5 | ) | 40 | (390 | ) | |||||||||||||
307 | 453 | 340 | 1,569 | 713 | ||||||||||||||||
Operating income (loss) | (114 | ) | (355 | ) | (104 | ) | (1,124 | ) | 18 | |||||||||||
Investment loss, net | (4 | ) | (16 | ) | (16 | ) | (35 | ) | (44 | ) | ||||||||||
Loss before income taxes | (118 | ) | (371 | ) | (120 | ) | (1,159 | ) | (26 | ) | ||||||||||
Provision for (recovery of) income taxes | (1 | ) | 1 | (31 | ) | — | (56 | ) | ||||||||||||
Net income (loss) | $ | (117 | ) | $ | (372 | ) | $ | (89 | ) | $ | (1,159 | ) | $ | 30 | ||||||
Earnings (loss) per share | ||||||||||||||||||||
Basic | $ | (0.22 | ) | $ | (0.71 | ) | $ | (0.17 | ) | $ | (2.21 | ) | $ | 0.06 | ||||||
Diluted | $ | (0.22 | ) | $ | (0.71 | ) | $ | (0.17 | ) | $ | (2.21 | ) | $ | (0.46 | ) | |||||
Weighted-average number of common shares outstanding (000’s) | ||||||||||||||||||||
Basic | 526,102 | 522,826 | 525,103 | 523,601 | 526,879 | |||||||||||||||
Diluted | 526,102 | 522,826 | 525,103 | 523,601 | 651,879 | |||||||||||||||
Total common shares outstanding (000’s) | 529,962 | 523,488 | 525,701 | 529,962 | 525,701 |
As at | November 30, 2016 | February 29, 2016 | |||||
Assets | |||||||
Current | |||||||
Cash and cash equivalents | $ | 830 | $ | 957 | |||
Short-term investments | 459 | 1,420 | |||||
Accounts receivable, net | 199 | 338 | |||||
Other receivables | 41 | 51 | |||||
Inventories | 44 | 143 | |||||
Income taxes receivable | 19 | — | |||||
Other current assets | 67 | 102 | |||||
Assets held for sale | 87 | 257 | |||||
1,746 | 3,268 | ||||||
Long-term investments | 269 | 197 | |||||
Restricted cash | 51 | 50 | |||||
Property, plant and equipment, net | 105 | 155 | |||||
Goodwill | 559 | 618 | |||||
Intangible assets, net | 621 | 1,213 | |||||
Deferred income tax asset | — | 33 | |||||
$ | 3,351 | $ | 5,534 | ||||
Liabilities | |||||||
Current | |||||||
Accounts payable | $ | 99 | $ | 270 | |||
Accrued liabilities | 273 | 368 | |||||
Income taxes payable | — | 9 | |||||
Deferred revenue | 272 | 392 | |||||
644 | 1,039 | ||||||
Long-term debt | 607 | 1,277 | |||||
Deferred income tax liability | 8 | 10 | |||||
1,259 | 2,326 | ||||||
Shareholders’ Equity | |||||||
Capital stock and additional paid-in capital | 2,498 | 2,448 | |||||
Retained earnings (deficit) | (391 | ) | 768 | ||||
Accumulated other comprehensive loss | (15 | ) | (8 | ) | |||
2,092 | 3,208 | ||||||
$ | 3,351 | $ | 5,534 |
Nine Months Ended | ||||||||
November 30, 2016 | November 28, 2015 | |||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | (1,159 | ) | $ | 30 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Amortization | 182 | 489 | ||||||
Deferred income taxes | 32 | (67 | ) | |||||
Stock-based compensation | 45 | 42 | ||||||
Loss on disposal of property, plant and equipment | 5 | 46 | ||||||
Impairment of goodwill | 57 | — | ||||||
Impairment of long-lived assets | 501 | — | ||||||
Write-down of assets held for sale | 165 | — | ||||||
Other-than-temporary impairment on cost-based investments | 8 | — | ||||||
Debentures fair value adjustment | 40 | (390 | ) | |||||
Other | 6 | 23 | ||||||
Net changes in working capital items: | ||||||||
Accounts receivable, net | 139 | 158 | ||||||
Other receivables | 10 | 54 | ||||||
Inventories | 99 | (22 | ) | |||||
Income tax receivable, net | (19 | ) | 157 | |||||
Other current assets | 31 | 222 | ||||||
Accounts payable | (171 | ) | 13 | |||||
Income taxes payable | (9 | ) | — | |||||
Accrued liabilities | (84 | ) | (281 | ) | ||||
Deferred revenue | (120 | ) | (217 | ) | ||||
Net cash provided by (used in) operating activities | (242 | ) | 257 | |||||
Cash flows from investing activities | ||||||||
Acquisition of long-term investments | (429 | ) | (275 | ) | ||||
Proceeds on sale or maturity of long-term investments | 215 | 141 | ||||||
Acquisition of property, plant and equipment | (14 | ) | (25 | ) | ||||
Proceeds on sale of property, plant and equipment | 4 | — | ||||||
Acquisition of intangible assets | (28 | ) | (43 | ) | ||||
Business acquisitions, net of cash acquired | (5 | ) | (689 | ) | ||||
Acquisition of short-term investments | (901 | ) | (2,091 | ) | ||||
Proceeds on sale or maturity of short-term investments | 1,987 | 2,674 | ||||||
Conversion of cost-based investment to equity securities | 10 | — | ||||||
Unrealized loss in equity securities | (2 | ) | — | |||||
Net cash provided by (used in) investing activities | 837 | (308 | ) | |||||
Cash flows from financing activities | ||||||||
Issuance of common shares | 5 | 3 | ||||||
Payment of contingent consideration from business acquisitions | (15 | ) | — | |||||
Common shares repurchased | — | (57 | ) | |||||
Effect of foreign exchange gain on restricted cash | (3 | ) | — | |||||
Transfer from restricted cash | 2 | 4 | ||||||
Repurchase of 6% debentures | (1,315 | ) | — | |||||
Issuance of 3.75% Debentures | 605 | — | ||||||
Net cash used in financing activities | (721 | ) | (50 | ) | ||||
Effect of foreign exchange loss on cash and cash equivalents | (1 | ) | (9 | ) | ||||
Net decrease in cash and cash equivalents during the period | (127 | ) | (110 | ) | ||||
Cash and cash equivalents, beginning of period | 957 | 1,233 | ||||||
Cash and cash equivalents, end of period | $ | 830 | $ | 1,123 | ||||
As at | November 30, 2016 | August 31, 2016 | ||||||
Cash and cash equivalents | $ | 830 | $ | 1,687 | ||||
Short-term investments | 459 | 413 | ||||||
Long-term investments | 269 | 321 | ||||||
Restricted cash | 51 | 53 | ||||||
$ | 1,609 | $ | 2,474 |
GAAP Income Statement (Three Months Ended) | Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | Q1 FY17 | Q2 FY17 | Q3 FY17 | |||||||||||||||||||||||
Software & Services | $ | 137 | $ | 73 | $ | 155 | $ | 131 | $ | 496 | $ | 142 | $ | 138 | $ | 160 | |||||||||||||||
Hardware & Other | 269 | 206 | 220 | 190 | 885 | 152 | 105 | 62 | |||||||||||||||||||||||
Service Access Fees | 252 | 211 | 173 | 143 | 779 | 106 | 91 | 67 | |||||||||||||||||||||||
Revenue | 658 | 490 | 548 | 464 | 2,160 | 400 | 334 | 289 | |||||||||||||||||||||||
Cost of sales | |||||||||||||||||||||||||||||||
Cost of sales | 327 | 301 | 303 | 251 | 1,182 | 200 | 139 | 94 | |||||||||||||||||||||||
Inventory write-down | 21 | 4 | 9 | 3 | 36 | 46 | 97 | 2 | |||||||||||||||||||||||
Total cost of sales | 348 | 305 | 312 | 254 | 1,219 | 246 | 236 | 96 | |||||||||||||||||||||||
Gross margin | 310 | 185 | 236 | 210 | 941 | 154 | 98 | 193 | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||
Research and development | 139 | 122 | 100 | 108 | 469 | 89 | 85 | 75 | |||||||||||||||||||||||
Selling, marketing and administration | 173 | 186 | 175 | 179 | 712 | 129 | 139 | 145 | |||||||||||||||||||||||
Amortization | 65 | 67 | 68 | 77 | 277 | 54 | 44 | 43 | |||||||||||||||||||||||
Impairment of goodwill | — | — | — | — | — | 57 | — | — | |||||||||||||||||||||||
Impairment of long-lived assets | — | — | — | — | — | 501 | — | — | |||||||||||||||||||||||
Abandonment of long-lived assets | 1 | 5 | 2 | 127 | 136 | 3 | — | — | |||||||||||||||||||||||
Write-down of assets held for sale | — | — | — | — | — | — | 123 | 42 | |||||||||||||||||||||||
Debentures fair value adjustment | (157 | ) | (228 | ) | (5 | ) | (40 | ) | (430 | ) | (24 | ) | 62 | 2 | |||||||||||||||||
Total operating expenses | 221 | 152 | 340 | 451 | 1,164 | 809 | 453 | 307 | |||||||||||||||||||||||
Operating income (loss) | 89 | 33 | (104 | ) | (241 | ) | (223 | ) | (655 | ) | (355 | ) | (114 | ) | |||||||||||||||||
Investment loss, net | (16 | ) | (12 | ) | (16 | ) | (15 | ) | (59 | ) | (15 | ) | (16 | ) | (4 | ) | |||||||||||||||
Income (loss) before income taxes | 73 | 21 | (120 | ) | (256 | ) | (282 | ) | (670 | ) | (371 | ) | (118 | ) | |||||||||||||||||
Provision for (recovery of) income taxes | 5 | (30 | ) | (31 | ) | (18 | ) | (74 | ) | — | 1 | (1 | ) | ||||||||||||||||||
Net income (loss) | $ | 68 | $ | 51 | $ | (89 | ) | $ | (238 | ) | $ | (208 | ) | $ | (670 | ) | $ | (372 | ) | $ | (117 | ) | |||||||||
Earnings (loss) per share | |||||||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.13 | $ | 0.10 | $ | (0.17 | ) | $ | (0.45 | ) | $ | (0.40 | ) | $ | (1.28 | ) | $ | (0.71 | ) | $ | (0.22 | ) | |||||||||
Diluted earnings (loss) per share | $ | (0.10 | ) | $ | (0.24 | ) | $ | (0.17 | ) | $ | (0.45 | ) | $ | (0.86 | ) | $ | (1.28 | ) | $ | (0.71 | ) | $ | (0.22 | ) | |||||||
Weighted-average number of common shares outstanding (000’s) | |||||||||||||||||||||||||||||||
Basic | 529,235 | 526,314 | 525,103 | 524,627 | 526,303 | 521,905 | 522,826 | 526,102 | |||||||||||||||||||||||
Diluted | 670,539 | 667,321 | 525,103 | 524,627 | 651,303 | 521,905 | 522,826 | 526,102 | |||||||||||||||||||||||
Non-GAAP Adjustments (Three Months Ended, Pre-Tax and After Tax) | Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | Q1 FY17 | Q2 FY17 | Q3 FY17 | |||||||||||||||||||||||
LLA impairment charge | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 501 | $ | — | $ | — | |||||||||||||||
Goodwill impairment charge | — | — | — | — | — | 57 | — | — | |||||||||||||||||||||||
Inventory write-down | — | — | — | — | — | 41 | 96 | — | |||||||||||||||||||||||
Debentures fair value adjustment | (157 | ) | (228 | ) | (5 | ) | (40 | ) | (430 | ) | (24 | ) | 62 | 2 | |||||||||||||||||
Write-down of assets held for sale | — | — | — | — | — | — | 123 | 42 | |||||||||||||||||||||||
RAP charges | 52 | 79 | 33 | 180 | 344 | 25 | 24 | 24 | |||||||||||||||||||||||
CORE program charges (recoveries) | 9 | 6 | (6 | ) | 2 | 11 | (2 | ) | (2 | ) | (2 | ) | |||||||||||||||||||
Software deferred revenue acquired | — | 1 | 9 | 23 | 33 | 24 | 18 | 12 | |||||||||||||||||||||||
Stock compensation expense | 14 | 14 | 14 | 17 | 60 | 12 | 18 | 15 | |||||||||||||||||||||||
Acquired intangibles amortization | 9 | 11 | 18 | 28 | 66 | 28 | 28 | 28 | |||||||||||||||||||||||
Business acquisition and integration costs | 1 | — | 11 | 10 | 22 | 7 | 4 | 5 | |||||||||||||||||||||||
Total Non-GAAP Adjustments (Three Months Ended, Pre-Tax and After Tax) | $ | (72 | ) | $ | (117 | ) | $ | 74 | $ | 220 | $ | 106 | $ | 669 | $ | 371 | $ | 126 | |||||||||||||
Non-GAAP Gross Profit | Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | Q1 FY17 | Q2 FY17 | Q3 FY17 | |||||||||||||||||||||||
GAAP revenue | $ | 658 | $ | 490 | $ | 548 | $ | 464 | $ | 2,160 | $ | 400 | $ | 334 | $ | 289 | |||||||||||||||
Software deferred revenue acquired | — | 1 | 9 | 23 | 33 | 24 | 18 | 12 | |||||||||||||||||||||||
Non-GAAP revenue | 658 | 491 | 557 | 487 | 2,193 | 424 | 352 | 301 | |||||||||||||||||||||||
Total cost of sales | (348 | ) | (305 | ) | (312 | ) | (254 | ) | (1,219 | ) | (246 | ) | (236 | ) | (96 | ) | |||||||||||||||
Non-GAAP adjustments to cost of sales | 21 | 15 | 5 | 4 | 45 | 48 | 103 | 5 | |||||||||||||||||||||||
Non-GAAP Gross Profit | $ | 331 | $ | 201 | $ | 250 | $ | 237 | $ | 1,019 | $ | 226 | $ | 219 | $ | 210 | |||||||||||||||
Adjusted EBITDA | Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | Q1 FY17 | Q2 FY17 | Q3 FY17 | |||||||||||||||||||||||
GAAP operating income (loss) | $ | 89 | $ | 33 | $ | (104 | ) | $ | (241 | ) | $ | (223 | ) | $ | (655 | ) | $ | (355 | ) | $ | (114 | ) | |||||||||
Non-GAAP adjustments to operating income (loss) | (72 | ) | (117 | ) | 74 | 220 | 106 | 669 | 371 | 126 | |||||||||||||||||||||
Non-GAAP operating income (loss) | 17 | (84 | ) | (30 | ) | (21 | ) | (117 | ) | 14 | 16 | 12 | |||||||||||||||||||
Amortization | 164 | 163 | 162 | 127 | 616 | 72 | 57 | 53 | |||||||||||||||||||||||
Acquired intangibles amortization | (9 | ) | (11 | ) | (18 | ) | (28 | ) | (66 | ) | (28 | ) | (28 | ) | (28 | ) | |||||||||||||||
Adjusted EBITDA | $ | 172 | $ | 68 | $ | 114 | $ | 78 | $ | 433 | $ | 58 | $ | 45 | $ | 37 | |||||||||||||||
Reconciliation from GAAP Net Income (Loss) to Non-GAAP Net Loss and Non-GAAP Loss per Share | Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | Q1 FY17 | Q2 FY17 | Q3 FY17 | |||||||||||||||||||||||
GAAP Net Income (Loss) | $ | 68 | $ | 51 | $ | (89 | ) | $ | (238 | ) | $ | (208 | ) | $ | (670 | ) | $ | (372 | ) | $ | (117 | ) | |||||||||
Total Non-GAAP adjustments (three months ended, after-tax) | (72 | ) | (117 | ) | 74 | 220 | 106 | 669 | 371 | 126 | |||||||||||||||||||||
Non-GAAP Net Income (Loss) | $ | (4 | ) | $ | (66 | ) | $ | (15 | ) | $ | (18 | ) | $ | (102 | ) | $ | (1 | ) | $ | (1 | ) | $ | 9 | ||||||||
Non-GAAP Income (Loss) per Share | $ | (0.01 | ) | $ | (0.13 | ) | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.19 | ) | $ | 0.00 | $ | 0.00 | $ | 0.02 | ||||||||||
Shares outstanding for Non-GAAP Income (Loss) per share reconciliation | 529,235 | 526,314 | 525,103 | 524,627 | 526,303 | 521,905 | 522,826 | 526,102 |
Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | Q1 FY17 | Q2 FY17 | Q3 FY17 | ||||||||||||||||||||||||
Research and development | 2 | — | — | — | 2 | — | — | — | |||||||||||||||||||||||
Selling, marketing and administration | 7 | 6 | (6 | ) | 2 | 9 | (2 | ) | (2 | ) | (2 | ) | |||||||||||||||||||
Total CORE Charges | $ | 9 | $ | 6 | $ | (6 | ) | $ | 2 | $ | 11 | $ | (2 | ) | $ | (2 | ) | $ | (2 | ) |
Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | Q1 FY17 | Q2 FY17 | Q3 FY17 | ||||||||||||||||||||||||
Cost of sales | $ | 21 | $ | 14 | $ | 5 | $ | 4 | $ | 44 | $ | 7 | $ | 7 | $ | 5 | |||||||||||||||
Research and development | 13 | 14 | 2 | 18 | 47 | 2 | — | (1 | ) | ||||||||||||||||||||||
Selling, marketing and administration | 18 | 51 | 26 | 158 | 253 | 16 | 140 | 62 | |||||||||||||||||||||||
Total RAP Charges | $ | 52 | $ | 79 | $ | 33 | $ | 180 | $ | 344 | $ | 25 | $ | 147 | $ | 66 |
Q1 FY16 | Q2 FY16 | Q3 FY16 | Q4 FY16 | FY16 | Q1 FY17 | Q2 FY17 | Q3 FY17 | ||||||||||||||||||||||||
In cost of sales | |||||||||||||||||||||||||||||||
Property, plant and equipment | $ | 16 | $ | 10 | $ | 13 | 12 | $ | 51 | $ | 12 | $ | 12 | $ | 10 | ||||||||||||||||
Intangible assets | 83 | 86 | 81 | 38 | 288 | 6 | 1 | — | |||||||||||||||||||||||
Total in cost of sales | 99 | 96 | 94 | 50 | 339 | 18 | 13 | 10 | |||||||||||||||||||||||
In operating expenses amortization | |||||||||||||||||||||||||||||||
Property, plant and equipment | 20 | 22 | 16 | 15 | 73 | 12 | 8 | 6 | |||||||||||||||||||||||
Intangible assets | 45 | 45 | 52 | 62 | 204 | 42 | 36 | 37 | |||||||||||||||||||||||
Total in operating expenses amortization | 65 | 67 | 68 | 77 | 277 | 54 | 44 | 43 | |||||||||||||||||||||||
Total amortization | |||||||||||||||||||||||||||||||
Property, plant and equipment | 36 | 32 | 29 | 27 | 124 | 24 | 20 | 16 | |||||||||||||||||||||||
Intangible assets | 128 | 131 | 133 | 100 | 492 | 48 | 37 | 37 | |||||||||||||||||||||||
Total amortization | $ | 164 | $ | 163 | $ | 162 | $ | 127 | $ | 616 | $ | 72 | $ | 57 | $ | 53 |
BlackBerry Limited | ||||||
(Registrant) | ||||||
Date: | 12/20/2016 | By: | /s/ Steven Capelli | |||
Name: | Steven Capelli | |||||
Title: | Chief Financial Officer |