Fourth Quarter Fiscal 2021:
- Total company non-GAAP revenue of $215 million; total company GAAP revenue of
$210 million.
- During the quarter BlackBerry entered into an exclusive
negotiation with a North American entity for the potential sale of
part of the patent portfolio relating primarily to mobile devices,
messaging and wireless networking. The Company has limited its
patent monetization activities due to the ongoing negotiations. If
the Company had not been in negotiations during the quarter, we
believe that Licensing revenue would have been higher.
- Non-GAAP earnings per basic and diluted share of
$0.03; GAAP loss per basic and
diluted share of $0.56.
- GAAP loss per share was largely driven by a non-cash
accounting adjustment on the convertible debentures, resulting from
market conditions. This adjustment equates to approximately
$0.46 of GAAP loss per
share.
- Net cash generated from operating activities of $51 million.
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.
WATERLOO, Ontario, March 30, 2021 /PRNewswire/ -- 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 2021 IDC marketscape UEM
report.
Outlook
BlackBerry will provide 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.
Conference Call and Webcast
A conference call and live
webcast will be held today beginning at 5:30
p.m. ET, which can be accessed by dialing +1 (877) 682-6267
or by logging on at BlackBerry.com/Investors.
A replay of the conference call will also be available at
approximately 8:30 p.m. ET by dialing
+1 (800) 585-8367 and entering Conference ID #4884474 and at the
link above.
About BlackBerry
BlackBerry (NYSE: BB; TSX: BB)
provides intelligent security software and services to enterprises
and governments around the world. The company secures more than
500M endpoints including more than
175M cars on the road today.
Based in Waterloo, Ontario, the
company leverages AI and machine learning to deliver innovative
solutions in the areas of cybersecurity, safety and data privacy,
and is a leader in the areas of endpoint security, endpoint
management, encryption, and embedded systems. BlackBerry's
vision is clear - to secure a connected future you can trust.
BlackBerry. Intelligent Security. Everywhere.
For more
information, visit BlackBerry.com and follow @BlackBerry.
Investor Contact:
BlackBerry Investor Relations
+1 (519) 888-7465
investor_relations@blackberry.com
Media Contact:
BlackBerry Media Relations
+1 (519) 597-7273
mediarelations@blackberry.com
This news release contains forward-looking statements within the
meaning of certain securities laws, including under the U.S.
Private Securities Litigation Reform Act of 1995 and applicable
Canadian securities laws, including statements regarding
BlackBerry's plans, strategies and objectives including its
expectations with respect to BlackBerry QNX and BlackBerry IVY and
increasing and enhancing its product and service
offerings.
The words "expect", "anticipate", "estimate", "may", "will",
"should", "could", "intend", "believe", "target", "plan" and
similar expressions are intended to identify these forward-looking
statements. Forward-looking statements are based on estimates and
assumptions made by BlackBerry in light of its experience and its
perception of historical trends, current conditions and expected
future developments, as well as other factors that BlackBerry
believes are appropriate in the circumstances, including but not
limited to, BlackBerry's expectations regarding its business,
strategy, opportunities and prospects, the launch of new products
and services, general economic conditions particularly in light of
COVID-19, competition, and BlackBerry's expectations regarding its
financial performance. Many factors could cause BlackBerry's
actual results, performance or achievements to differ materially
from those expressed or implied by the forward-looking statements,
including, without limitation, risks related to the following
factors: BlackBerry's ability to enhance, develop, introduce or
monetize products and services for the enterprise market in a
timely manner with competitive pricing, features and performance;
BlackBerry's ability to maintain or expand its customer base for
its software and services offerings to grow revenue or achieve
sustained profitability; the intense competition faced by
BlackBerry; the occurrence or perception of a breach of
BlackBerry's network cybersecurity measures, or an inappropriate
disclosure of confidential or personal information; the failure or
perceived failure of BlackBerry's solutions to detect or prevent
security vulnerabilities; the impact of the COVID-19 coronavirus
pandemic; BlackBerry's continuing ability to attract new personnel,
retain existing key personnel and manage its staffing effectively;
BlackBerry's dependence on its relationships with resellers and
channel partners; litigation against BlackBerry; network
disruptions or other business interruptions; BlackBerry's ability
to foster an ecosystem of third-party application developers;
BlackBerry's products and services being dependent upon
interoperability with rapidly changing systems provided by third
parties; BlackBerry's ability to obtain rights to use third-party
software and its use of open source software; failure to protect
BlackBerry's intellectual property and to earn expected revenues
from intellectual property rights; BlackBerry being found to have
infringed on the intellectual property rights of others; the
substantial asset risk faced by BlackBerry, including the potential
for charges related to its long-lived assets and goodwill;
BlackBerry's indebtedness; tax provision changes, the adoption of
new tax legislation or exposure to additional tax liabilities; the
use and management of user data and personal information;
government regulations applicable to BlackBerry's products and
services, including products containing encryption capabilities;
the failure of BlackBerry's suppliers, subcontractors, channel
partners and representatives to use acceptable ethical business
practices or comply with applicable laws; regulations regarding
health and safety, hazardous materials usage and conflict minerals;
acquisitions, divestitures and other business initiatives; foreign
operations, including fluctuations in foreign currencies; the
fluctuation of BlackBerry's quarterly revenue and operating
results; the volatility of the market price of BlackBerry's common
shares; adverse economic, geopolitical and environmental
conditions.
These risk factors and others relating to BlackBerry are
discussed in greater detail in BlackBerry's Annual Report on
Form 10-K and the "Cautionary Note Regarding
Forward-Looking Statements" section of BlackBerry's MD&A
(copies of which filings may be obtained at www.sedar.com or
www.sec.gov). All of these factors should be considered carefully,
and readers should not place undue reliance on BlackBerry's
forward-looking statements. Any statements that are forward-looking
statements are intended to enable BlackBerry's shareholders to view
the anticipated performance and prospects of BlackBerry from
management's perspective at the time such statements are made, and
they are subject to the risks that are inherent in all
forward-looking statements, as described above, as well as
difficulties in forecasting BlackBerry's financial results and
performance for future periods, particularly over longer periods,
given changes in technology and BlackBerry's business strategy,
evolving industry standards, intense competition and short product
life cycles that characterize the industries in which BlackBerry
operates. BlackBerry has no intention and undertakes no obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by applicable law.
BlackBerry
Limited
|
Incorporated under
the Laws of Ontario
|
(United States
dollars, in millions except share and per share amounts)
(unaudited)
|
|
Consolidated
Statements of Operations
|
|
|
Three Months
Ended
|
|
For the Years
Ended
|
|
February 28,
2021
|
|
November 30,
2020
|
|
February 29,
2020
|
|
February 28,
2021
|
|
February 29,
2020
|
Revenue
|
$
|
210
|
|
|
$
|
218
|
|
|
$
|
282
|
|
|
$
|
893
|
|
|
$
|
1,040
|
|
Cost of
sales
|
58
|
|
|
69
|
|
|
70
|
|
|
250
|
|
|
277
|
|
Gross
margin
|
152
|
|
|
149
|
|
|
212
|
|
|
643
|
|
|
763
|
|
Gross margin
%
|
72.4
|
%
|
|
68.3
|
%
|
|
75.2
|
%
|
|
72.0
|
%
|
|
73.4
|
%
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Research and
development
|
48
|
|
|
53
|
|
|
60
|
|
|
215
|
|
|
259
|
|
Selling, marketing and
administration
|
92
|
|
|
83
|
|
|
113
|
|
|
344
|
|
|
493
|
|
Amortization
|
45
|
|
|
45
|
|
|
48
|
|
|
182
|
|
|
194
|
|
Impairment of
goodwill
|
—
|
|
|
—
|
|
|
22
|
|
|
594
|
|
|
22
|
|
Impairment of
long-lived assets
|
22
|
|
|
—
|
|
|
5
|
|
|
43
|
|
|
10
|
|
Debentures fair value
adjustment
|
258
|
|
|
95
|
|
|
5
|
|
|
372
|
|
|
(66)
|
|
|
465
|
|
|
276
|
|
|
253
|
|
|
1,750
|
|
|
912
|
|
Operating
loss
|
(313)
|
|
|
(127)
|
|
|
(41)
|
|
|
(1,107)
|
|
|
(149)
|
|
Investment income
(loss), net
|
—
|
|
|
(1)
|
|
|
(1)
|
|
|
(6)
|
|
|
1
|
|
Loss before income
taxes
|
(313)
|
|
|
(128)
|
|
|
(42)
|
|
|
(1,113)
|
|
|
(148)
|
|
Provision for
(recovery of) income taxes
|
2
|
|
|
2
|
|
|
(1)
|
|
|
(9)
|
|
|
4
|
|
Net
loss
|
$
|
(315)
|
|
|
$
|
(130)
|
|
|
$
|
(41)
|
|
|
$
|
(1,104)
|
|
|
$
|
(152)
|
|
Loss per
share
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.56)
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.07)
|
|
|
$
|
(1.97)
|
|
|
$
|
(0.27)
|
|
Diluted
|
$
|
(0.56)
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.07)
|
|
|
$
|
(1.97)
|
|
|
$
|
(0.32)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of common shares outstanding (000s)
|
|
|
|
|
|
|
|
|
|
Basic
|
566,089
|
|
|
562,443
|
|
|
556,668
|
|
|
561,305
|
|
|
553,861
|
|
Diluted
|
566,089
|
|
|
562,443
|
|
|
556,668
|
|
|
561,305
|
|
|
614,361
|
|
Total common shares
outstanding (000s)
|
565,505
|
|
|
562,016
|
|
|
554,199
|
|
|
565,505
|
|
|
554,199
|
|
BlackBerry
Limited
|
Incorporated under
the Laws of Ontario
|
(United States
dollars, in millions) (unaudited)
|
|
Consolidated
Balance Sheets
|
|
|
|
As
at
|
|
|
February 28,
2021
|
|
February 29,
2020
|
Assets
|
|
|
|
|
Current
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
214
|
|
|
$
|
377
|
|
Short-term
investments
|
|
525
|
|
|
532
|
|
Accounts receivable,
net of allowance of $10 and $9, respectively
|
|
182
|
|
|
215
|
|
Other
receivables
|
|
25
|
|
|
14
|
|
Income taxes
receivable
|
|
10
|
|
|
6
|
|
Other current
assets
|
|
50
|
|
|
52
|
|
|
|
1,006
|
|
|
1,196
|
|
Restricted cash
equivalent and restricted short-term investments
|
|
28
|
|
|
49
|
|
Long-term
investments
|
|
37
|
|
|
32
|
|
Other long-term
assets
|
|
16
|
|
|
65
|
|
Operating lease
right-of-use assets, net
|
|
63
|
|
|
124
|
|
Property, plant
and equipment, net
|
|
48
|
|
|
70
|
|
Goodwill
|
|
849
|
|
|
1,437
|
|
Intangible assets,
net
|
|
771
|
|
|
915
|
|
|
|
$
|
2,818
|
|
|
$
|
3,888
|
|
Liabilities
|
|
|
|
|
Current
|
|
|
|
|
Accounts
payable
|
|
$
|
20
|
|
|
$
|
31
|
|
Accrued
liabilities
|
|
178
|
|
|
202
|
|
Income taxes
payable
|
|
6
|
|
|
18
|
|
Debentures
|
|
—
|
|
|
606
|
|
Deferred revenue,
current
|
|
225
|
|
|
264
|
|
|
|
429
|
|
|
1,121
|
|
Deferred revenue,
non-current
|
|
69
|
|
|
109
|
|
Operating lease
liabilities
|
|
90
|
|
|
120
|
|
Other long-term
liabilities
|
|
6
|
|
|
9
|
|
Long-term
debentures
|
|
720
|
|
|
—
|
|
|
|
1,314
|
|
|
1,359
|
|
Shareholders'
equity
|
|
|
|
|
Capital stock and
additional paid-in capital
|
|
2,823
|
|
|
2,760
|
|
Deficit
|
|
(1,306)
|
|
|
(198)
|
|
Accumulated other
comprehensive loss
|
|
(13)
|
|
|
(33)
|
|
|
|
1,504
|
|
|
2,529
|
|
|
|
$
|
2,818
|
|
|
$
|
3,888
|
|
BlackBerry
Limited
|
Incorporated under
the Laws of Ontario
|
(United States
dollars, in millions) (unaudited)
|
|
Consolidated
Statements of Cash Flows
|
|
|
For the Years
Ended
|
|
|
February 28,
2021
|
|
February 29,
2020
|
|
Cash flows from
operating activities
|
|
|
|
|
Net loss
|
$
|
(1,104)
|
|
|
$
|
(152)
|
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Amortization
|
198
|
|
|
212
|
|
|
Deferred income
taxes
|
(3)
|
|
|
—
|
|
|
Stock-based
compensation
|
44
|
|
|
63
|
|
|
Impairment of
goodwill
|
594
|
|
|
22
|
|
|
Impairment of
long-lived assets
|
43
|
|
|
10
|
|
|
Non-cash consideration
received from contracts with customers
|
—
|
|
|
(8)
|
|
|
Debentures fair value
adjustment
|
372
|
|
|
(66)
|
|
|
Other long-term
liabilities
|
(3)
|
|
|
2
|
|
|
Operating
leases
|
(4)
|
|
|
(9)
|
|
|
Other
|
1
|
|
|
10
|
|
|
Net changes in
working capital items
|
|
|
|
|
Accounts receivable,
net of allowance
|
29
|
|
|
18
|
|
|
Other
receivables
|
(11)
|
|
|
5
|
|
|
Income taxes
receivable
|
(4)
|
|
|
3
|
|
|
Other
assets
|
55
|
|
|
(35)
|
|
|
Accounts
payable
|
(11)
|
|
|
(17)
|
|
|
Accrued
liabilities
|
(20)
|
|
|
(15)
|
|
|
Income taxes
payable
|
(15)
|
|
|
1
|
|
|
Deferred
revenue
|
(79)
|
|
|
(18)
|
|
|
Net cash provided
by operating activities
|
82
|
|
|
26
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Acquisition of
long-term investments
|
(5)
|
|
|
(1)
|
|
|
Proceeds on sale or
maturity of long-term investments
|
—
|
|
|
19
|
|
|
Acquisition of
property, plant and equipment
|
(8)
|
|
|
(12)
|
|
|
Acquisition of
intangible assets
|
(36)
|
|
|
(32)
|
|
|
Business
acquisitions, net of cash acquired
|
—
|
|
|
1
|
|
|
Acquisition of
restricted short-term investments
|
(24)
|
|
|
—
|
|
|
Acquisition of
short-term investments
|
(1,039)
|
|
|
(1,180)
|
|
|
Proceeds on sale or
maturity of short-term investments
|
1,047
|
|
|
1,017
|
|
|
Net cash used in
investing activities
|
(65)
|
|
|
(188)
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Issuance of common
shares
|
19
|
|
|
9
|
|
|
Payment of finance
lease liability
|
(1)
|
|
|
(2)
|
|
|
Repurchase of 3.75%
Debentures
|
(610)
|
|
|
—
|
|
|
Issuance of 1.75%
Debentures
|
365
|
|
|
—
|
|
|
Net cash provided
by (used in) financing activities
|
(227)
|
|
|
7
|
|
|
Effect of foreign
exchange gain (loss) on cash, cash equivalents, restricted cash,
and restricted cash equivalents
|
2
|
|
|
(1)
|
|
|
Net decrease in
cash, cash equivalents, restricted cash, and restricted cash
equivalents during the period
|
(208)
|
|
|
(156)
|
|
|
Cash, cash
equivalents, restricted cash, and restricted cash equivalents,
beginning of period
|
426
|
|
|
582
|
|
|
Cash, cash
equivalents, restricted cash, and restricted cash equivalents, end
of period
|
$
|
218
|
|
|
$
|
426
|
|
|
|
As
at
|
February 28,
2021
|
|
February 29,
2020
|
|
Cash and cash
equivalents
|
$
|
214
|
|
|
$
|
377
|
|
|
Restricted cash
equivalents and restricted short-term investments
|
28
|
|
|
49
|
|
Short-term
investments
|
525
|
|
|
532
|
|
Long-term
investments
|
37
|
|
|
32
|
|
|
$
|
804
|
|
|
$
|
990
|
|
Reconciliations of Non-GAAP Measures with the Nearest
Comparable U.S. GAAP Measures
In the Company's internal reports, management evaluates the
performance of the Company's business on a non-GAAP basis by
excluding the impact of certain items below from the Company's U.S.
GAAP financial results. The Company believes that these non-GAAP
measures provide readers of the Company's financial statements with
a consistent basis for comparison across accounting periods and is
useful in helping readers understand the Company's operating
results and underlying operational trends.
Readers are cautioned that adjusted revenue, adjusted Software
and Services revenue, adjusted gross margin, adjusted gross margin
percentage, adjusted operating expense, adjusted operating income,
adjusted EBITDA, adjusted operating income margin percentage,
adjusted EBITDA margin percentage, adjusted net income (loss),
adjusted income (loss) per share, adjusted research and development
expense, adjusted selling, marketing and administrative expense and
adjusted amortization expense and similar measures do not have any
standardized meaning prescribed by U.S. GAAP and are therefore
unlikely to be comparable to similarly titled measures reported by
other companies. These non-GAAP financial measures should be
considered in the context of the U.S. GAAP results.
Reconciliation of non-GAAP based measures with most
directly comparable U.S. GAAP based measures for the three months
ended February 28, 2021 and
February 29, 2020
A reconciliation of the most directly comparable U.S. GAAP
financial measures for the three months ended February 28, 2021 and February 29, 2020 to adjusted financial measures
is reflected in the tables below:
For the Three
Months Ended (in millions)
|
|
February 28,
2021
|
|
February 29,
2020
|
Revenue
|
|
$
|
210
|
|
|
$
|
282
|
|
Software deferred
revenue acquired (1)
|
|
5
|
|
|
9
|
|
Adjusted
revenue
|
|
$
|
215
|
|
|
$
|
291
|
|
|
|
|
|
|
Gross
margin
|
|
$
|
152
|
|
|
$
|
212
|
|
Software deferred
revenue acquired (1)
|
|
5
|
|
|
9
|
|
Stock compensation
expense
|
|
1
|
|
|
2
|
|
Adjusted gross
margin
|
|
$
|
158
|
|
|
$
|
223
|
|
|
|
|
|
|
Gross margin
%
|
|
72.4
|
%
|
|
75.2
|
%
|
Software deferred
revenue acquired (1)
|
|
0.6
|
%
|
|
0.7
|
%
|
Stock compensation
expense
|
|
0.5
|
%
|
|
0.7
|
%
|
Adjusted gross
margin %
|
|
73.5
|
%
|
|
76.6
|
%
|
______________________________
|
(1) See
Reconciliation of U.S. GAAP Software and Services revenue to
adjusted Software and Services revenue
|
Reconciliation of operating expense for the three months ended
February 28, 2021 and February 29, 2020 to adjusted operating expense
is reflected in the tables below:
For the Three
Months Ended (in millions)
|
|
February 28,
2021
|
|
February 29,
2020
|
Operating
expense
|
|
$
|
465
|
|
|
$
|
253
|
|
Restructuring
charges
|
|
—
|
|
|
1
|
|
Stock compensation
expense
|
|
16
|
|
|
15
|
|
Debenture fair value
adjustment
|
|
258
|
|
|
5
|
|
Software deferred
commission expense acquired
|
|
(3)
|
|
|
(3)
|
|
Acquired intangibles
amortization
|
|
32
|
|
|
35
|
|
Business acquisition
and integration costs
|
|
—
|
|
|
1
|
|
Goodwill impairment
charge
|
|
—
|
|
|
22
|
|
LLA impairment
charge
|
|
22
|
|
|
5
|
|
Adjusted operating
expense
|
|
$
|
140
|
|
|
$
|
172
|
|
Reconciliation of U.S. GAAP net loss and U.S. GAAP basic loss
per share for the three months ended February 28, 2021 and February 29, 2020 to adjusted net income and
adjusted basic earnings per share is reflected in the tables
below:
For the Three
Months Ended (in millions, except per share amounts)
|
|
February 28,
2021
|
|
February 29,
2020
|
|
|
|
|
Basic
earnings
(loss) per
share
|
|
|
|
Basic
earnings
(loss) per
share
|
Net
loss
|
|
$
|
(315)
|
|
|
$(0.56)
|
|
$
|
(41)
|
|
|
$(0.07)
|
Software deferred
revenue acquired
|
|
5
|
|
|
|
|
9
|
|
|
|
Restructuring
charges
|
|
—
|
|
|
|
|
1
|
|
|
|
Stock compensation
expense
|
|
17
|
|
|
|
|
17
|
|
|
|
Debenture fair value
adjustment
|
|
258
|
|
|
|
|
5
|
|
|
|
Software deferred
commission expense acquired
|
|
(3)
|
|
|
|
|
(3)
|
|
|
|
Acquired intangibles
amortization
|
|
32
|
|
|
|
|
35
|
|
|
|
Business acquisition
and integration costs
|
|
—
|
|
|
|
|
1
|
|
|
|
Goodwill impairment
charge
|
|
—
|
|
|
|
|
22
|
|
|
|
LLA impairment
charge
|
|
22
|
|
|
|
|
5
|
|
|
|
Adjusted net
income
|
|
$
|
16
|
|
|
$0.03
|
|
$
|
51
|
|
|
$0.09
|
Reconciliation of U.S. GAAP Software and Services revenue for
the three months ended February 28,
2021 and February 29, 2020 to
adjusted Software and Services revenue is reflected in the tables
below:
For the Three
Months Ended (in millions)
|
|
February 28,
2021
|
|
February 29,
2020
|
Software and
Services Revenue
|
|
$
|
160
|
|
|
$
|
170
|
|
Software deferred
revenue acquired
|
|
5
|
|
|
9
|
|
Adjusted Software
and Services revenue
|
|
$
|
165
|
|
|
$
|
179
|
|
Reconciliation of U.S. GAAP research and development, selling,
marketing and administration, and amortization expense for the
three months ended February 28, 2021
and February 29, 2020 to adjusted
research and development, selling, marketing and administration,
and amortization expense is reflected in the tables below:
For the Three
Months Ended (in millions)
|
|
February 28,
2021
|
|
February 29,
2020
|
Research and
development
|
|
$
|
48
|
|
|
$
|
60
|
|
Stock compensation
expense
|
|
3
|
|
|
3
|
|
Adjusted research
and development
|
|
$
|
45
|
|
|
$
|
57
|
|
|
|
|
|
|
Selling, marketing
and administration
|
|
$
|
92
|
|
|
$
|
113
|
|
Restructuring
charges
|
|
—
|
|
|
1
|
|
Software deferred
commission expense acquired
|
|
(3)
|
|
|
(3)
|
|
Stock compensation
expense
|
|
13
|
|
|
12
|
|
Business acquisition
and integration costs
|
|
—
|
|
|
1
|
|
Adjusted selling,
marketing and administration
|
|
$
|
82
|
|
|
$
|
102
|
|
|
|
|
|
|
Amortization
|
|
$
|
45
|
|
|
$
|
48
|
|
Acquired intangibles
amortization
|
|
32
|
|
|
35
|
|
Adjusted
amortization
|
|
$
|
13
|
|
|
$
|
13
|
|
Adjusted operating income, adjusted EBITDA, adjusted operating
income margin percentage and adjusted EBITDA margin percentage for
the three months ended February 28,
2021 and February 29, 2020 are
reflected in the table below.
For the Three
Months Ended (in millions)
|
|
February 28,
2021
|
|
February 29,
2020
|
Operating
loss
|
|
$
|
(313)
|
|
|
$
|
(41)
|
|
Non-GAAP adjustments
to operating loss
|
|
|
|
|
Software deferred
revenue acquired
|
|
5
|
|
|
9
|
|
Restructuring
charges
|
|
—
|
|
|
1
|
|
Stock compensation
expense
|
|
17
|
|
|
17
|
|
Debenture fair value
adjustment
|
|
258
|
|
|
5
|
|
Software deferred
commission expense acquired
|
|
(3)
|
|
|
(3)
|
|
Acquired intangibles
amortization
|
|
32
|
|
|
35
|
|
Business acquisition
and integration costs
|
|
—
|
|
|
1
|
|
Goodwill impairment
charge
|
|
—
|
|
|
22
|
|
LLA impairment
charge
|
|
22
|
|
|
5
|
|
Total non-GAAP
adjustments to operating loss
|
|
331
|
|
|
92
|
|
Adjusted operating
income
|
|
18
|
|
|
51
|
|
Amortization
|
|
49
|
|
|
52
|
|
Acquired intangibles
amortization
|
|
(32)
|
|
|
(35)
|
|
Adjusted
EBITDA
|
|
$
|
35
|
|
|
$
|
68
|
|
|
|
|
|
|
Adjusted revenue
(per above)
|
|
$
|
215
|
|
|
$
|
291
|
|
Adjusted operating
income margin % (1)
|
|
8%
|
|
|
18%
|
|
Adjusted EBITDA
margin % (2)
|
|
16%
|
|
|
23%
|
|
______________________________
|
(1)
Adjusted operating income margin % is calculated by dividing
adjusted operating income by adjusted revenue
|
(2)
Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA
by adjusted revenue
|
Reconciliation of non-GAAP based measures with most
directly comparable U.S. GAAP based measures for the years ended
February 28, 2021 and February 29, 2020
A reconciliation of the most directly comparable U.S. GAAP
financial measures for the years ended February 28, 2021 and February 29, 2020 to adjusted financial measures
is reflected in the tables below:
For the Year
Ended (in millions)
|
|
February 28,
2021
|
|
February 29,
2020
|
Revenue
|
|
$
|
893
|
|
|
$
|
1,040
|
|
Software deferred
revenue acquired (1)
|
|
26
|
|
|
59
|
|
Adjusted
revenue
|
|
$
|
919
|
|
|
$
|
1,099
|
|
|
|
|
|
|
Gross
margin
|
|
$
|
643
|
|
|
$
|
763
|
|
Software deferred
revenue acquired (1)
|
|
26
|
|
|
59
|
|
Restructuring
charges
|
|
—
|
|
|
5
|
|
Stock compensation
expense
|
|
5
|
|
|
5
|
|
Adjusted gross
margin
|
|
$
|
674
|
|
|
$
|
832
|
|
|
|
|
|
|
Gross margin
%
|
|
72.0
|
%
|
|
73.4
|
%
|
Software deferred
revenue acquired (1)
|
|
0.8
|
%
|
|
1.4
|
%
|
Restructuring
charges
|
|
—
|
%
|
|
0.5
|
%
|
Stock compensation
expense
|
|
0.5
|
%
|
|
0.4
|
%
|
Adjusted gross
margin %
|
|
73.3
|
%
|
|
75.7
|
%
|
|
|
|
|
|
Operating
expense
|
|
$
|
1,750
|
|
|
$
|
912
|
|
Restructuring
charges
|
|
2
|
|
|
5
|
|
Stock compensation
expense
|
|
47
|
|
|
58
|
|
Debenture fair value
adjustment
|
|
372
|
|
|
(66)
|
|
Software deferred
commission expense acquired
|
|
(13)
|
|
|
(16)
|
|
Acquired intangibles
amortization
|
|
129
|
|
|
141
|
|
Business acquisition
and integration costs
|
|
—
|
|
|
4
|
|
Goodwill impairment
charge
|
|
594
|
|
|
22
|
|
LLA impairment
charge
|
|
43
|
|
|
10
|
|
Adjusted operating
expense
|
|
$
|
576
|
|
|
$
|
754
|
|
______________________________
|
(1) See
Reconciliation of U.S GAAP Software and Services revenue to
adjusted Software and Service revenue
|
Reconciliation of U.S. GAAP net loss and U.S. GAAP basic loss
per share for the years ended February 28,
2021 and February 29, 2020 to
the adjusted net income and basic earnings per share is reflected
in the tables below:
For the Year
Ended (in millions, except per share amounts)
|
|
February 28,
2021
|
|
February 29,
2020
|
|
|
|
|
Basic
earnings
(loss) per
share
|
|
|
|
Basic
earnings
(loss) per
share
|
Net
loss
|
|
$
|
(1,104)
|
|
|
$
|
(1.97)
|
|
|
$
|
(152)
|
|
|
$
|
(0.27)
|
|
Software deferred
revenue acquired
|
|
26
|
|
|
|
|
59
|
|
|
|
Restructuring
charges
|
|
2
|
|
|
|
|
10
|
|
|
|
Stock compensation
expense
|
|
52
|
|
|
|
|
63
|
|
|
|
Debenture fair value
adjustment
|
|
372
|
|
|
|
|
(66)
|
|
|
|
Software deferred
commission expense acquired
|
|
(13)
|
|
|
|
|
(16)
|
|
|
|
Acquired intangibles
amortization
|
|
129
|
|
|
|
|
141
|
|
|
|
Business acquisition
and integration costs
|
|
—
|
|
|
|
|
4
|
|
|
|
Goodwill impairment
charge
|
|
594
|
|
|
|
|
22
|
|
|
|
LLA impairment
charge
|
|
43
|
|
|
|
|
10
|
|
|
|
Acquisition valuation
allowance
|
|
—
|
|
|
|
|
(1)
|
|
|
|
Adjusted net
income
|
|
$
|
101
|
|
|
$0.18
|
|
$
|
74
|
|
|
$0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of U.S. GAAP Software and Services revenue for
the years ended February 28, 2021 and
February 29, 2020 to adjusted
Software and Services revenue is reflected in the tables below:
For the Year
Ended (in millions)
|
|
February 28,
2021
|
|
February 29,
2020
|
Software and
Services Revenue
|
|
$
|
621
|
|
|
$
|
691
|
|
Software deferred
revenue acquired
|
|
26
|
|
|
59
|
|
Adjusted Software
and Services Revenue
|
|
$
|
647
|
|
|
$
|
750
|
|
Reconciliation of U.S. GAAP research and development, selling,
marketing and administration, and amortization expense for the
years ended February 28, 2021 and
February 29, 2020 to adjusted
research and development, selling, marketing and administration,
and amortization expense is reflected in the tables below:
For the Year
Ended (in millions)
|
|
February 28,
2021
|
|
February 29,
2020
|
Research and
development
|
|
$
|
215
|
|
|
$
|
259
|
|
Stock compensation
expense
|
|
11
|
|
|
13
|
|
Adjusted research
and development
|
|
$
|
204
|
|
|
$
|
246
|
|
|
|
|
|
|
Selling, marketing
and administration
|
|
$
|
344
|
|
|
$
|
493
|
|
Restructuring
charges
|
|
2
|
|
|
5
|
|
Software deferred
commission expense acquired
|
|
(13)
|
|
|
(16)
|
|
Stock compensation
expense
|
|
36
|
|
|
45
|
|
Business acquisition
and integration costs
|
|
—
|
|
|
4
|
|
Adjusted selling,
marketing and administration
|
|
$
|
319
|
|
|
$
|
455
|
|
|
|
|
|
|
Amortization
|
|
$
|
182
|
|
|
$
|
194
|
|
Acquired intangibles
amortization
|
|
129
|
|
|
141
|
|
Adjusted
amortization
|
|
$
|
53
|
|
|
$
|
53
|
|
Adjusted operating income, adjusted EBITDA, adjusted operating
income margin percentage and adjusted EBITDA margin percentage for
the years ended February 28, 2021 and
February 29, 2020 are reflected in
the table below.
For the Year
Ended (in millions)
|
|
February 28,
2021
|
|
February 29,
2020
|
Operating
loss
|
|
$
|
(1,107)
|
|
|
$
|
(149)
|
|
Non-GAAP adjustments
to operating loss
|
|
|
|
|
Software deferred
revenue acquired
|
|
26
|
|
|
59
|
|
Restructuring
charges
|
|
2
|
|
|
10
|
|
Stock compensation
expense
|
|
52
|
|
|
63
|
|
Debenture fair value
adjustment
|
|
372
|
|
|
(66)
|
|
Software deferred
commission expense acquired
|
|
(13)
|
|
|
(16)
|
|
Acquired intangibles
amortization
|
|
129
|
|
|
141
|
|
Business acquisition
and integration costs
|
|
—
|
|
|
4
|
|
Goodwill impairment
charge
|
|
594
|
|
|
22
|
|
LLA impairment
charge
|
|
43
|
|
|
10
|
|
Total non-GAAP
adjustments to operating loss
|
|
1,205
|
|
|
227
|
|
Adjusted operating
income
|
|
98
|
|
|
78
|
|
Amortization
|
|
198
|
|
|
212
|
|
Acquired intangibles
amortization
|
|
(129)
|
|
|
(141)
|
|
Adjusted
EBITDA
|
|
$
|
167
|
|
|
$
|
149
|
|
|
|
|
|
|
Adjusted revenue
(per above)
|
|
$
|
919
|
|
|
$
|
1,099
|
|
Adjusted operating
income margin % (1)
|
|
11
|
%
|
|
7
|
%
|
Adjusted EBITDA
margin % (2)
|
|
18
|
%
|
|
14
|
%
|
______________________________
|
(1)
Adjusted operating income margin % is calculated by dividing
adjusted operating income by adjusted revenue
|
(2)
Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA
by adjusted revenue
|
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SOURCE BlackBerry Limited