2015 Q1 BlackBerry Fiscal Report

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Press Release

BlackBerry Reports 2015 Fiscal First Quarter GAAP Profitability

WATERLOO, ONTARIO–(Marketwired – June 19, 2014) – BlackBerry Limited (NASDAQ:BBRY)(TSX:BB), a global leader in mobile communications, today reported financial results for the three months ended May 31, 2014 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Q1 Highlights: Cash and investments balance of $3.1 billion at the end of the fiscal first quarter, up from $2.7 billion in the prior quarter Adjusted Q1 gross margin of 48%, up from 43% in the prior quarter Reduced adjusted operating expenses by 57% year over year and 13% quarter over quarter Successfully launched the new Z3 device in Indonesia; 8 additional countries to follow EZ Pass Program resulted in a total of 1.2 million licenses issued for BES10, including more than 10% of total licenses traded in from competitors’ Mobile Device Management platforms Launched Project Ion focused on the “Internet of Things” market

Q1 Results Revenue for the first quarter of fiscal 2015 was $966 million, down $10 million or 1% from $976 million in the previous quarter. The revenue breakdown for the quarter was approximately 39% for hardware, 54% for services and 7% for software and other revenue. During the first quarter, the Company recognized hardware revenue on approximately 1.6 million BlackBerry smartphones compared to approximately 1.3 million BlackBerry smartphones in the previous quarter. During the first quarter, approximately 2.6 million BlackBerry smartphones were sold through to end customers, which included shipments made and recognized prior to the first quarter and which reduced the Company’s inventory in channel.

GAAP net income for the first quarter was $23 million, or $0.04 earnings per share (“EPS”). The net income includes non-cash income associated with the change in the fair value of the Debentures of $287 million (the “Q1 Fiscal 2015 Debentures Fair Value Adjustment”) and pre-tax restructuring charges of $226 million related to the Cost Optimization and Resource Efficiency (“CORE”) program. Excluding these items, adjusted loss for the first quarter was $60 million, or $0.11 per share. These impacts on GAAP net income and EPS are summarized in the table below.

The total of cash, cash equivalents, short-term and long-term investments was $3.1 billion as of May 31, 2014, compared to $2.7 billion at the end of the previous quarter – a net increase of $429 million. Excluding receipt of a tax refund of $397 million and proceeds on the sale of real estate of $287 million, the Company used $255 million in the first quarter. This represents a decrease from $784 million used last quarter, after excluding proceeds of $250 million related to convertible debt issuance. Purchase obligations and other commitments amounted to approximately $1.8 billion as at May 31, 2014, with purchase orders with contract manufacturers representing approximately $317 million of the total.

“Our performance in fiscal Q1 demonstrates that we are firmly on track to achieve important milestones, including our financial objectives and delivering a strong product portfolio,” said John Chen, Executive Chairman and Chief Executive Officer of BlackBerry. “Over the past six months, we have focused on improving efficiency in all aspects of our operations to drive cost reductions and margin improvement. Looking forward, we are focusing on our growth plan to enable our return to profitability.”

Outlook

The Company anticipates maintaining its strong cash position, while increasingly looking for opportunities to prudently invest in growth. The Company is targeting break-even cash flow results by the end of fiscal 2015.

Reconciliation of GAAP gross margin, gross margin percentage, loss before income taxes, and net income to adjusted gross margin, adjusted gross margin percentage, adjusted loss before income taxes, adjusted net loss and adjusted loss per share: (United States dollars, in millions except per share data)

BlackBerry Reports 2015 Fiscal First Quarter GAAP Profitability

Note: Adjusted gross margin, adjusted gross margin percentage, adjusted loss before income taxes, adjusted net loss and adjusted loss per share do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company’s operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of the Company’s GAAP results.

(1) During the first quarter of fiscal 2015, the Company reported GAAP gross margin of $451 million or 47% of revenue. Excluding the impact of the CORE charges included in cost of sales, the adjusted gross margin was $463 million, or 48%.

(2) During the first quarter of fiscal 2015, the Company incurred charges related to the CORE program of $226 million pre-tax, or $204 million after tax, of which $12 million were included in cost of sales, $41 million were included in research and development and $173 million were included in selling, marketing, and administration expenses.

(3) During the first quarter of fiscal 2015, the Company recorded the Q1 Fiscal 2015 Debentures Fair Value Adjustment of $287 million. This adjustment was presented on a separate line in the Consolidated Statement of Operations.

Supplementary Geographic Revenue Breakdown

Conference Call and Webcast A conference call and live webcast will be held beginning at 8 am ET, which can be accessed by dialing 1-877-974-0445 or through your BlackBerry® 10 smartphone, personal computer or BlackBerry® PlayBook™ tablet here. A replay of the conference call will also be available at approximately 10 am by dialing (+1)416-640-1917 and entering pass code 4680440# or by clicking the link above on your BlackBerry® 10 smartphone, personal computer or BlackBerry® PlayBook™ tablet. This replay will be available until midnight ET July 4, 2014.

BlackBerry In Partnership with Amazon

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Rumour has it that today is the day that Amazon unveils its new entry into the cell phone or rather “sell” phone market. What this means for market share by various OEMs remains to be seen. With both BlackBerry and Microsoft at near 3% of the USA market share, a new agreement with direct access to the Amazon App Store between BlackBerry and Amazon might be what is needed for BlackBerry to break away from Microsoft. Here is the press release:

Press Release

Waterloo, ON – BlackBerry Limited (NASDAQ: BBRY; TSX: BB), a world leader in mobile communications, today announced that the Amazon Appstore will be available with the launch of the BlackBerry 10.3 operating system this fall, greatly expanding access to thousands of the most popular apps and games to BlackBerry customers.

With more than 240,000 Android applications in the Amazon Appstore worldwide, BlackBerry 10 device customers will gain access to popular apps such as Groupon, Netflix, Pinterest, Candy Crush Saga and Minecraft.

The strategic move also enables BlackBerry to align its developer program with its renewed focus on delivering the most secure, end-to-end mobile enterprise solutions, by placing more emphasis on the development of vital enterprise and productivity applications.

“Making the Amazon Appstore available on BlackBerry 10 devices will help BlackBerry continue to meet two essential needs: greater app availability for our smartphone users and enhanced productivity solutions for enterprises,” said BlackBerry Executive Chairman and CEO John Chen. “We’ve listened to our customers and have taken this important step to deliver on their needs, while executing on our strategy.”

BlackBerry and Amazon will be working with the BlackBerry application developer community to help them migrate their apps to the Amazon Appstore in preparation for the 10.3 launch, where they will benefit from the store’s powerful promotional tools that enable maximum discoverability and profitability. This will include Appstore Developer Select, which provides enhanced merchandising, as well as Amazon Coins incentives, the Developer Promotions Console, which enables real-time pricing adjustments and specials, and the popular Free App of the Day program.

BlackBerry will unveil a new enterprise application partner program for corporate developers, ISVs and systems integrators, designed to expand the number of enterprise applications that leverage BlackBerry 10 to deliver business-class functionality and enhance users’ productivity, communication and collaboration.

Fettuccine Topped With A Calamari Tomato Sauce

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Serves 4 to 6 easily

Ingredienti

1 lb of calamari
1 large sweet onion
several cloves of garlic
1 can (32oz) of crushed tomatoes
4 scalions
extra virgin olive oil
salt and pepper to taste
cumen to taste
bay leaves

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Procedure

Finely chop the garlic
Dice the onion, sscalions
Add About 1/4 inch coating of olive oil to a medium sized sauce pan
Stir fry the garlic, onion, and scalions until golden
Add the calamari and stir fry covered for no more than 8 minutes
Add the crushed tomatoes, salt, pepper, other spices, bay leaves and bring to a boil before reducing heat to simmer for 20 minutes

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Bring a large soup pot of water to a boil, add 2lbs fettucine or linguini,  add salt to elevate the temperature, bring back to a boil and cook according to package instructions for al dente or your preferred texture
Strain pasta and toss in the sauce in the large pot
Plate and top with freshly grated parmigiano romano and enjoy!

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NYC Subway

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The NYC Subway is a microcosm of life in NY. One finds entertainment, distractions amusement in the variety of people and the diaspora they represent. One can be a famous player. Several years ago I sat across from Sting on the A train. One can be from Harlem or from the Bronx to Brooklyn, and ride on the number 2 line. The different lines travel different hoods with their own line culture, but all of NY intermingled on the subway with tourists from all over the world. 

One, indeed, can be immersed in a distinct cultural oasis where French, German, Italian, Chinese, and almost any other language can be heard.

You cannot get a real feel of NYC, without embarking on the NYC Subway.

The #NYC #subway is a #microcosm of #life. #Peddlers #players and #pumps!

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BlackBerry Battles Google

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Recently, we have seen Alec Saunders discuss BlackBerry and its project ION as it races to develop an iOT standard and platform: http://wp.me/p381yl-1ds

Alec stated, “BlackBerry is in the best position to provide the technological building blocks, applications and services needed to deliver on the vision of IoT.”

An interesting article elaborates on this:

M2M FEATURE
May 27, 2014
BlackBerry Battles Google for the Internet of Things: Let’s Hope BlackBerry Wins

  
By Rob Enderle
President and Principal Analyst, Enderle Group

The war for smartphones is not over, but it is rapidly moving on to the Internet of Things, where most of the appliances, vehicles and devices around us are both connected to the Web and to each other. But there is an inherent problem in this market — while there are interconnect standards, there has been no platform that has emerged as dominant, and the standards that do exist haven’t yet fully addressed the emerging need to manage or secure these devices.  

BlackBerry actually has the missing parts pretty well in hand and is planning to take its QNX platform, already dominant in automobiles, to the Internet of Things as an alternative to Google’s similar effort.

 

more here:

http://www.m2mevolution.com/topics/m2mevolution/articles/379711-blackberry-battles-google-the-internet-things-lets-hope.htm

BlackBerry and Project ION

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05.21.14 / Alec Saunders

We’re at a tipping point.

Billions of everyday devices will soon be connected to the Internet. Today thermostats and smartphones have the capability to talk to each other. Tomorrow virtually all of our devices will be connected. We’re already starting to see trends – imagine a world where your contact lenses can measure glucose levels, your car has always-on 4G LTE and even dairy cows are connected to the Internet to make sure they’re as healthy as possible.

Data has become an integral part of the products we use. As every human being and the products, companies and services they interact with become connected, we believe that how companies collect and interpret that data is going to transform how modern business is done. This is the Internet of Things (IoT).

Unfortunately, the traditional machine-to-machine technology used for today’s IoT is expensive, usually proprietary, custom built and often confined by the boundaries of the enterprise firewall. Not to mention these technologies are outdated by our present standards.

So there’s a need – today – for a secure public applications platform for the Internet of Things that operates at a global scale.

Our CEO John Chen has talked about it before and I want to show you what we’ve been working on. Today at O’Reilly Solid in San Francisco, a new conference exploring the convergence of our physical and digital worlds, I unveiled Project Ion. It’s a codename that we’ve been using internally for our vision for the Internet of Things where the customer is at the center of a connected IoT experience that offers tools and resources to securely connect millions of devices and distill information for real-time decisions.

Project Ion consists of three initiatives where we will explore many components and ideas to act on our vision. The first is a cloud-based product from QNX Software Systems that enables companies and developers to quickly and securely take part in the IoT. We’re moving fast to support our vision and today announced that select companies and partners will soon have the opportunity to access an early version of the product. It’s a secure platform that can scale globally to handle the millions of transactions and exabytes of data generated by these objects every single day.

As our second initiative, we’re building out an IoT ecosystem that consists of partners, carriers and application developers. The third component of Project Ion includes important new partnerships, including memberships in the Industrial Internet Consortium and the Application Developer Alliance, which help drive IoT industry dialogue and innovation forward.

We believe BlackBerry is in the best position to provide the technological building blocks, applications and services needed deliver on the vision of IoT. We’ll have more to share as Project Ion moves forward, but in the meantime I want to hear from you. Will IoT change everything? Visit blackberry.com/project-ion to tell us what IoT means to you or how you’re using it today.

As I said before, this is just the beginning of a new connected world – and we’re glad you’re with us for the ride.

Source:

http://blogs.blackberry.com/2014/05/internet-of-things/

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Rogers Launches “Suretap” NFC Payment

Press Release

Rogers customers can change the way they pay with the launch of the suretap(TM) wallet

Canada NewsWire TORONTO, April 11, 2014 Customers can now leave their cash at home and use their smartphones to make everyday purchases

TORONTO, April 11, 2014 /CNW/ – Canadians are about to think differently about cash, cards and their bulky wallets. Today, Rogers is launching the suretap wallet, a new application that lets customers use their smartphones to make payments at tens of thousands of retailers across the country. With the suretap wallet, customers can safely store eligible payment cards on their smartphone and make purchases by simply holding it up to contactless payment terminals, just like they do today with plastic credit and debit cards.

“Our customers are inseparable from their smartphones, and we know they are ready and want to use them to make payments. With the suretap wallet, their smartphones and wallets will now be one and the same,” said Jeppe Dorff, Vice-President, Transaction Services, Rogers Communications. “Now thousands of our customers across the country can make simple, secure and fast payments using their smartphones instead of fumbling through their wallets to find their payment cards.”

Starting today, customers can add multiple cards to their suretap wallet including a Rogers Prepaid MasterCard that can be topped up with funds for mobile payments. Also available for purchase are gift cards from leading Canadian food and beverage merchants and retailers including Swiss Chalet, Milestones Grill and Bar, Montana’s Cookhouse, Harvey’s, Kelsey’s, Indigo, Earls Restaurants, Ardene, and Spafinder Wellness 365. In the future, the suretap wallet application will offer more retailer gift cards, as well as store loyalty cards, coupons and ID cards.

Within the suretap wallet application, customers can add funds to their prepaid card, check account balances, view transaction history and use location-based features to find retailers nearby that accept contactless payments. The application is available for download on select Android and BlackBerry 10 smartphones that include near-field-communications capabilities.

Customers can have the peace of mind that their payment information and passcodes are securely stored on the suretap wallet’s SIM card. The wallet is backed by technology that lets customers make payments anywhere in the world that contactless payments are accepted. For merchants and retailers, accepting mobile payments with the suretap wallet means no additional or new fees.

To learn more about the suretap application including suretap-ready devices and the features and functionality of the wallet, visit http://www.rogers.com/suretap.