BlackBerry (BBRY) Reports Q4 EPS of $0.04, Sales Beat

(Updated - March 31, 2017 7:06 AM EDT)

BlackBerry (NASDAQ: BBRY) reported Q4 EPS of $0.04, versus the consensus of $0.00. Revenue for the quarter came in at $297 million versus the consensus estimate of $289.34 million.

Q4 Highlights

• -- Q4 non-GAAP total revenue of $297 million; GAAP total revenue of $286 million
• -- Q4 non-GAAP Company total software and services revenues of $193 million; GAAP Company total software and services revenues of $182 million
• -- Q4 non-GAAP gross margin of 65%; GAAP gross margin of 60%
• -- Q4 adjusted EBITDA of $42 million; positive for thirteenth consecutive quarter
• -- Q4 cash flow from operations of $19 million; free cash flow of $16 million
• -- Total cash balance increased by $89 million to $1.7 billion at the end of the fiscal fourth quarter
• -- Entered into a long-term, software licensing agreement with Optiemus Infracom Ltd to design, manufacture, sell and support BlackBerry-branded mobile devices in India, Sri Lanka, Nepal and Bangladesh
• -- At International CES 2017, announced the most advanced and secure embedded software platform for autonomous drive and connected cars
• -- At Mobile World Congress, TCL launched the BlackBerry KEYone, the most secure Android phone in the world featuring a smart QWERTY keyboard; the KEYone is the first device launched under the Company's licensing agreement with TCL
• -- Entered the Communications Platform as a Service (CPaaS) market with the launch of the BBM Enterprise SDK that will enable developers to integrate secure messaging, voice and video capabilities into applications and services
• -- After the quarter close, BB Merah Putih launched the BlackBerry Aurora, the first device launched under the Company's licensing agreement with BB Merah Putih
• -- After the quarter close, BlackBerry's AtHoc services achieved U.S. government FedRAMP and Agency/Component Authority to Operate (ATO) certifications

"I am pleased to report that our Q4 results came in at or above expectations in all major metrics," said John Chen, Executive Chairman and CEO, BlackBerry. "In the quarter, we continued to grow our mix of software and services revenue across the company. In turn, this allowed us to expand our operating margin and report positive free cash flow. In addition, our balance sheet continues to strengthen and benefit from reduced capital requirements with our focus on software and licensing."

"In our areas of strategic focus, we are executing well and gaining traction," continued Chen. "In our enterprise business, we had one of our best-ever software billings quarters, driven by strength across regulated and non-regulated industries. Enhancing our position in public sector, we recently achieved FedRAMP certification for the U.S. government. In IOT appliances, we won new business and secured six new customer trials for Radar. We demonstrated our autonomous driving technology platform at CES 2017. In mobile software licensing, we signed our third major agreement, and we now have global coverage. We are entering the next phase in sub-licensing our secure software to a variety of new mobile endpoints. We also entered the CPaaS market with the launch of our BBM Enterprise Software Development Kit, which will expand our addressable opportunity in a high growth segment."

"Looking ahead to fiscal 2018, we expect to grow at or above the overall market in our software business. We also expect to be profitable on a non-GAAP basis and to generate positive free cash flow for the full year."

For earnings history and earnings-related data on BlackBerry (BBRY) click here.

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