BlackBerry Reports Fourth Quarter and Full Fiscal Year 2021 Results

Overview:

Fiscal Year 2021:

• Total company non-GAAP revenue of $919 million; total company GAAP revenue of $893 million.
• Non-GAAP earnings per basic and diluted share of $0.18; GAAP loss per basic and diluted share of $1.97.
• Net cash generated from operating activities of $82 million.
• BlackBerry (NYSE:BB) has slipped 3.6% after hours after missing revenue expectations with its fourth-quarter earnings, with sales that fell by 26% year-over-year.
• Revenue landed at $215M on a non-GAAP basis.

• Gross margin was 73%, and non-GAAP operating earnings were $18M. (GAAP operating loss was $313M mainly due to fair-value adjustments to long-term debt.)
• “This has been an exceptional year to navigate, however, we are pleased with QNX’s continued recovery, despite new challenges from the global chip shortage,” CEO John Chen says.
• “QNX now has to design wins with 23 of the world’s top 25 electric vehicle OEMs and remains on course to return to a normal revenue run rate by mid-fiscal 2022,” he adds.
• Revenue breakout: Software and services, $165M; Licensing and other, $50M.
• Liquidity at the quarter’s end was $804M.
• Guidance for fiscal 2022 will come with its conference call.

Press Release

WATERLOO, Ontario, March 30, 2021 — BlackBerry Limited (NYSE: BB; TSX: BB) today reported financial results for the three months ended February 28, 2021 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

“This has been an exceptional year to navigate, however we are pleased with QNX’s continued recovery, despite new challenges from the global chip shortage.  QNX now has design wins with 23 of the world’s top 25 electric vehicle OEMs and remains on course to return to a normal revenue run rate by mid-fiscal 2022. BlackBerry IVY also made encouraging progress, with positive engagement from a number of leading automakers and the launch of our BlackBerry IVY Innovation Fund.” said John Chen, Executive Chairman & CEO, BlackBerry. “We are seeing tangible signs that our efforts and improvements in go-to-market are starting to pay off and have a positive impact. This quarter we generated strong sequential billings growth for our Software and Services business, including significant improvements for both Spark and QNX.  Total billings are back to pre-pandemic levels.”

Fourth Quarter Fiscal 2021 Financial Highlights

• Total company non-GAAP revenue for the fourth quarter of fiscal 2021 was $215 million. Total company GAAP revenue for the fourth quarter of fiscal 2021 was $210 million.
• Software and Services non-GAAP revenue for the fourth quarter of fiscal 2021 was $165 million. Software and Services GAAP revenue for the fourth quarter of fiscal 2021 was $160 million.
• Licensing and Other GAAP and non-GAAP revenue for the fourth quarter of fiscal 2021 was $50 million.
• Non-GAAP gross margin was 73% and GAAP gross margin was 72%.
• Non-GAAP operating earnings were $18 million. GAAP operating loss was $313 million, primarily due to fair value adjustments to long-term debt, as a result of market conditions.
• Non-GAAP earnings per share was $0.03 (basic and diluted). GAAP net loss per share was $0.56 (basic and diluted).
• Total cash, cash equivalents, short-term and long-term investments were $804 million.
• Net cash generated from operating activities was $51 million.

Business Highlights & Strategic Announcements

• BlackBerry launches BlackBerry IVY Innovation Fund to drive innovation and new products using BlackBerry IVY™.
• BlackBerry introduces BlackBerry® Alert Next-Gen Critical Event Management for the commercial sector.
• BlackBerry QNX has design wins with 23 of the world’s top 25 Electric Vehicle OEMs, who together have 68% of the EV market. This has increased from 19 of the top 25 last quarter.
• BlackBerry expands its partnership with Baidu to power next-generation autonomous driving technology.
• Scania chooses BlackBerry QNX as the safety-critical operating system and hypervisor in its next generation of heavy goods vehicles.
• Sony announces at CES that its Vision-S car will use BlackBerry® QNX® technology.
• BlackBerry and IBM integrate BlackBerry® Protect, BlackBerry® Optics and IBM QRadar.
• BlackBerry QNX Black Channel Communications to be used in Motional’s driverless platform.
• BlackBerry QNX working with Android Open Source Project (AOSP) for virtualization in automotive digital cockpits.
• BlackBerry SecuSUITE® for Government is now used by 18 governments.
• BlackBerry® Jarvis™ named ‘Best in Breed’ tool to protect mission-critical software supply chains.
• BlackBerry 2021 annual threat report uncovers breadth of COVID-19 exploitation.
• BlackBerry named a leader in the 2021 IDC market scape UEM report.

Outlook
BlackBerry will provide a fiscal year 2022 outlook in connection with the quarterly earnings announcement on its earnings conference call. The earnings call transcript will be made available on our website and on SEDAR.

Use of Non-GAAP Financial Measures
The tables at the end of this press release include a reconciliation of the non-GAAP financial measures used by the company to comparable U.S. GAAP measures and an explanation of why the company uses them.

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