Company Reports Positive Free Cash Flow for Eighth Consecutive Quarter and Positive EBITDA for Ninth Consecutive Quarter
WATERLOO, ONTARIO–(Marketwired – April 1, 2016) – BlackBerry Limited (NASDAQ:BBRY)(TSX:BB), a global leader in mobile communications, today reported financial results for the three months and fiscal year ended February 29, 2016 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).
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
Non-GAAP revenue for the fourth quarter of fiscal 2016 was $487 million with GAAP revenue of $464 million. GAAP revenue reflects a purchase accounting write down of deferred revenue associated with recent acquisitions. The non-GAAP revenue breakdown for the quarter was approximately 32% for software and services, 29% for service access fees (SAF), and 39% for hardware and other revenue. BlackBerry had over 3,600 enterprise customer wins in the quarter. Approximately 70% of fourth quarter software revenue was recurring.
Non-GAAP net loss for the fourth quarter was $(18) million, or $(0.03) per share. GAAP net loss for the quarter was $(238) million, or $(0.45) per basic share. Basic GAAP net loss reflects a purchase accounting impact of $23 million on GAAP revenue, a non-cash credit associated with the change in the fair value of the debentures of $40 million (the “Q4 Fiscal 2016 Debentures Fair Value Adjustment”), pre-tax charges of $192 million related to restructuring and acquisition costs, stock compensation of $17 million, and amortization of acquired intangibles of $28 million. The impact of these adjustments on GAAP net income and earnings per share is summarized in a table below.
Total cash, cash equivalents, short-term and long-term investments was $2.62 billion as of February 29, 2016. This reflects $6 million of positive free cash flow and $36 million used to repurchase 5 million shares. Excluding $1.25 billion in the face value of our debt, the net cash balance at the end of the quarter was $1.37 billion. Purchase orders with contract manufacturers totaled approximately $162 million at the end of the fourth quarter, compared to $298 million at the end of the third quarter and down from $394 million in the year ago quarter. Operating cash flow was $9 million.
“Overall, BlackBerry’s Q4 performance was solid as we made progress on the key elements of our strategy, which are to grow software faster than the mobility software market, achieve device profitability and generate positive free cash flow,” said Executive Chairman and Chief Executive Officer John Chen.
“We have clearly gained traction and market share in enterprise software. We more than doubled our software and licensing revenue in Q4 and exceeded our target of $500 million for the full year. Looking to FY 2017, our strategy is on track and our growth engines are in place to continue to generate above market growth in software and achieve our profitability objectives,” said Chen.
The company expects to grow software and services at around 30 percent. The Company continues to anticipate positive free cash flow and adjusted EBITDA for the full 2017 fiscal year.
Conference Call and Webcast
A conference call and live webcast will be held beginning at 8 am ET, which can be accessed by dialing 1-866-438-1903 or by logging on at https://ca.blackberry.com/company/investors/events.html. A replay of the conference call will also be available at approximately 11 am ET by dialing 1-855-859-2056 or 1-404-537-3406 and entering Conference ID # 47747014 or by clicking the link above.
BlackBerry is securing a connected world, delivering innovative solutions across the entire mobile ecosystem and beyond. We secure the world’s most sensitive data across all end points – from cars to smartphones – making the mobile-first enterprise vision a reality. Founded in 1984 and based in Waterloo, Ontario, BlackBerry operates offices in North America, Europe, Middle East and Africa, Asia Pacific and Latin America. The Company trades under the ticker symbols “BB” on the Toronto Stock Exchange and “BBRY” on the NASDAQ. For more information, visit www.BlackBerry.com.
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