UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________________________________________
FORM 6-K
_________________________________________________________________
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934
For the month of, June 2017
_________________________________________________________________  
Commission File Number 000-29898
_________________________________________________________________  
BlackBerry Limited
(Translation of registrant’s name into English)
_________________________________________________________________ 
2200 University Avenue East, Waterloo, Ontario, Canada N2K 0A7
(Address of principal executive offices)
_________________________________________________________________ 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40F:
Form 20-F   ¨             Form 40-F   x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   ¨

DOCUMENTS INCLUDED AS PART OF THIS REPORT
Document
 
1
BlackBerry Reports Profitability in Fiscal 2018 First Quarter  
2
BlackBerry Supplemental Financial Information









Document 1

IMAGE0.JPG

June 23, 2017

BlackBerry Reports Profitability in Fiscal 2018 First Quarter
Q1 non-GAAP EPS of $0.02 vs. $0.00 a year ago; GAAP EPS of $1.23 vs. ($1.28) loss a year ago
Waterloo, Ontario   - BlackBerry Limited (NASDAQ: BBRY; TSX: BB), a global software leader in securing, connecting and mobilizing enterprises, today reported financial results for the three months ended May 31, 2017 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).
Q1 Highlights
Q1 non-GAAP total revenue of $244 million; GAAP total revenue of $235 million
Q1 non-GAAP Company total software and services revenues of $169 million; GAAP Company total software and services revenues of $160 million
Q1 non-GAAP gross margin of 67%; GAAP gross margin of 64%
Total cash balance increased to $2.6 billion at the end of the fiscal first quarter
Awarded $940 million from the positive outcome of the Qualcomm arbitration
Launched AtHoc ACCOUNT, a new FedRAMP-authorized solution that enables government agencies and large organizations to account for personnel in real time; BlackBerry AtHoc is the only platform to achieve FedRAMP authorization for crisis communications
TCL initiated shipments of the BlackBerry KEYone, as part of the Company’s licensing program
BB Merah Putih initiated shipments of the BlackBerry Aurora, as part of the Company’s licensing program
Launched BlackBerry SHIELD, an assessment tool for cybersecurity risk management; partnered with Allied World to make the tool available to its cyber insurance policyholders
After the quarter, launched QNX Hypervisor 2.0, which enables the partitioning and isolation of safety critical environments in connected cars
After the quarter, announced that Qualcomm is adopting QNX Hypervisor 2.0 in support of its digital cockpit solutions
After the quarter, BlackBerry named a “Leader” in the Gartner Magic Quadrant for Enterprise Mobility Management Suites
After the quarter, announced the general availability of BBM Enterprise SDK to address the Communications Platform as a Service (CPaaS) market; more than 60 ISVs are using the tool to develop mobile apps for iOS and Android
Q1 Results
Non-GAAP revenue for the first quarter of fiscal 2018 was $244 million with GAAP revenue of $235 million. Approximately 79% of first quarter software and services revenue (excluding IP licensing and professional services) was recurring. BlackBerry had over 3,000 enterprise customer orders in the quarter.

Non-GAAP operating income was $14 million, and non-GAAP earnings per share was $0.02. GAAP operating income was $536 million. GAAP net income for the quarter was $671 million, or $1.23 per fully diluted share. GAAP net income includes $25 million in amortization of acquired intangibles, $17 million in restructuring charges, $218 million of fair value adjustment related to the debentures, $815 million in expense recovery and $139 million in investment income related to the positive outcome of the Qualcomm arbitration, and other amounts as summarized in a table below.






Total cash, cash equivalents, short-term and long-term investments increased by $855 million to approximately $2.6 billion as of May 31, 2017. This reflects free cash flow of $860 million, which includes cash flow from operations of $863 million. Excluding $605 million in the face value of the Company’s debt, the net cash balance at the end of the quarter was approximately $1.9 billion. There were no purchase orders with contract manufacturers at the end of the first quarter, or at the end of the fourth quarter of fiscal 2017, down from $150 million a year ago.
 
“In Q1, we made great progress strengthening our strategic position in emerging growth markets, most notably in cybersecurity and the Enterprise of Things,” said John Chen, Executive Chairman and CEO, BlackBerry. “We secured key design wins in high growth segments of automotive technology, including advanced driver assist, digital instrument cluster and our hypervisor solution. Our ecosystem is growing with Qualcomm and NVIDIA adopting BlackBerry technology for their automotive platforms. Furthermore, we have been recognized once again as a leader in Gartner’s Magic Quadrant on the strength of our BlackBerry Secure platform.”

“Our financial foundation is solid,” continued Chen. “We reported non-GAAP profitability for the third consecutive quarter, and our balance sheet continues to strengthen. More importantly, we are better positioned to invest in our strategic areas of focus to drive long-term sustainable growth, while returning capital through share repurchases to further enhance shareholder value.”

“Our outlook for fiscal 2018 is unchanged. We expect growth at or above the overall market in software and services. We also expect to be profitable on a non-GAAP basis and to generate positive free cash flow for the full year, excluding the benefit of the Qualcomm arbitration award.”
 







Reconciliation of GAAP revenue, gross margin, gross margin percentage, income before income taxes, net income and basic earnings per share to Non-GAAP revenue, gross margin, gross margin percentage, income before income taxes, net income and basic earnings per share:
(United States dollars, in millions except per share data)

Q1 Fiscal 2018 Non-GAAP Adjustments
 
For the Three Months Ended May 31, 2017
(in millions)
 
Income statement location
 
Revenue
 
Gross margin (before taxes)
 
Gross margin % (before taxes)
 
Income before income taxes
 
Net income
 
Basic earnings per share
As reported
 
 
$
235

 
$
150

 
63.8
%
 
$
672

 
$
671

 
$
1.26

Debentures fair value adjustment (2)
Debentures fair value adjustment
 

 

 
%
 
218

 
218

 
 
RAP charges (3)
Cost of sales
 

 
3

 
1.3
%
 
3

 
3

 
 
RAP charges (3)
Research and development
 

 

 
%
 
3

 
3

 
 
RAP charges (3)
Selling, marketing and administration
 

 

 
%
 
11

 
11

 
 
Software deferred revenue acquired (4)
Revenue
 
9

 
9

 
1.3
%
 
9

 
9

 
 
Stock compensation expense (5)
Cost of sales
 

 
1

 
0.3
%
 
1

 
1

 
 
Stock compensation expense (5)
Research and development
 

 

 
%
 
4

 
4

 
 
Stock compensation expense (5)
Selling, marketing and administration
 

 

 
%
 
8

 
8

 
 
Acquired intangibles amortization (6)
Amortization
 

 

 
%
 
25

 
25

 
 
Business acquisition and integration costs (7)
Selling, marketing and administration
 

 

 
%
 
11

 
11

 
 
Qualcomm arbitration
award (8)

Qualcomm arbitration award

 

 

 
%
 
(815
)
 
(815
)
 
 
Qualcomm arbitration
award (8)

Investment income
 

 

 
%
 
(139
)
 
(139
)
 
 
 
 
 
$
244

 
$
163

 
66.8
%
 
$
11

 
$
10

 
$
0.02


Note: Non-GAAP revenue, non-GAAP gross margin, non-GAAP gross margin percentage, non-GAAP income before income taxes, non-GAAP net income and non-GAAP income 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 2018 , the Company reported GAAP gross margin of $150 million or 63.8% of revenue. Excluding the impact of the resource alignment program (“RAP”) charges and stock compensation expense included in cost of sales and software deferred revenue acquired included in revenue, the non-GAAP gross margin was $163 million , or 66.8% of revenue.
(2)
During the first quarter of fiscal 2018 , the Company recorded the Q1 Fiscal 2018 Debentures Fair Value Adjustment of $218 million . This adjustment was presented on a separate line in the Consolidated Statements of Operations.
(3)
During the first quarter of fiscal 2018 , the Company incurred charges related to the RAP of approximately $17 million , of which $3 million was included in cost of sales, $3 million was included in research and development expense and $11 million was included in selling, marketing and administration expense.
(4)
During the first quarter of fiscal 2018 , the Company recorded software deferred revenue acquired but not recognized due to business combination accounting rules of $9 million , which was included in enterprise software and services revenue.





(5)
During the first quarter of fiscal 2018 , the Company recorded stock compensation expense of $13 million , of which $1 million was included in cost of sales, $4 million was included in research and development, and $8 million was included in selling, marketing and administration expenses.
(6)
During the first quarter of fiscal 2018 , the Company recorded amortization of intangible assets acquired through business combinations of $25 million , which was included in amortization expense.
(7)
During the first quarter of fiscal 2018 , the Company recorded business acquisition and integration costs incurred through business combinations of $11 million , which was included in selling, marketing and administration expenses.
(8)
During the first quarter of fiscal 2018 , the Company recorded the Qualcomm arbitration award of $954 million , of which $815 million was presented on a separate line in the Consolidated Statements of Operations, and $139 million was included in investment income.

Supplementary Geographic Revenue Breakdown
 
BlackBerry Limited
(United States dollars, in millions)
Revenue by Region

 
 
For the quarters ended
 
 
May 31, 2017
 
February 28, 2017
 
November 30, 2016
 
August 31, 2016
 
May 31, 2016
North America
 
$
127

 
54.0
%
 
$
166

 
58.0
%
 
$
167

 
57.8
%
 
$
190

 
56.9
%
 
$
177

 
44.3
%
Europe, Middle East and Africa
 
70

 
29.8
%
 
83

 
29.0
%
 
87

 
30.1
%
 
100

 
29.9
%
 
166

 
41.5
%
Latin America
 
4

 
1.7
%
 
5

 
1.8
%
 
7

 
2.4
%
 
13

 
3.9
%
 
10

 
2.5
%
Asia Pacific
 
34

 
14.5
%
 
32

 
11.2
%
 
28

 
9.7
%
 
31

 
9.3
%
 
47

 
11.8
%
Total
 
$
235

 
100.0
%
 
$
286

 
100.0
%
 
$
289

 
100.0
%
 
$
334

 
100.0
%
 
$
400

 
100.0
%

Supplementary Revenue by Product and Service Type Breakdown
 
BlackBerry Limited
(United States dollars, in millions)
Revenue by Product and Service Type

 
US GAAP
 
Adjustments
 
Non-GAAP
 
Three months ended
 
Three months ended
 
Three months ended
 
May 31, 2017
 
May 31, 2016
 
May 31, 2017
 
May 31, 2016
 
May 31, 2017
 
May 31, 2016
Enterprise software and services
$
92

 
$
82

 
$
9

 
$
24

 
$
101

 
$
106

BlackBerry Technology Solutions
36

 
35

 

 

 
36

 
35

Licensing, IP and other
32

 
25

 

 

 
32

 
25

Handheld devices
37

 
152

 

 

 
37

 
152

SAF
38

 
106

 

 

 
38

 
106

Total
$
235

 
$
400

 
$
9

 
$
24

 
$
244

 
$
424








Conference Call and Webcast
A conference call and live webcast will be held beginning at 8 a.m. ET, which can be accessed by dialing 1-844-309-0607 or by logging on at http://ca.blackberry.com/company/investors/events.html . A replay of the conference call will also be available at approximately 11 a.m. ET by dialing 1-855-859-2056 or 1-404-537-3406 and entering Conference ID #23915085 or by clicking the link above.


About BlackBerry
BlackBerry is a mobile-native security software and services company dedicated to securing people, devices, processes and systems for today’s enterprise. Based in Waterloo, Ontario, the Company was founded in 1984 and operates in North America, Europe, Asia, Middle East, Latin America and Africa. 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 .

Investor Contact:
BlackBerry Investor Relations
+1-519-888-7465
investor_relations@blackberry.com

Media Contact:
BlackBerry Media Relations
(519) 597-7273
mediarelations@blackberry.com

###

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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 BlackBerry’s expectations regarding anticipated demand for, and the timing of, product and service offerings, including the BlackBerry Secure platform for the Enterprise of Things and BlackBerry Radar; BlackBerry’s expectations with respect to the strength of its financial resources; BlackBerry’s expectations regarding the generation of software and services revenue growth; and BlackBerry’s expectations regarding its non-GAAP earnings per share and free cash flow.

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. 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 the following risks: 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, achieve sustained profitability or offset the decline in BlackBerry’s service access fees; the intense competition faced by BlackBerry; risks related to BlackBerry’s ability to attract new personnel, retain existing key personnel and manage its staffing effectively; BlackBerry’s dependence on its relationships with resellers and distributors; the occurrence or perception of a breach of BlackBerry’s security measures, or an inappropriate disclosure of confidential or personal information; the risk that sales to large enterprise customers and to customers in highly regulated industries and governmental entities can be highly competitive and require compliance with stringent regulation; risks related to BlackBerry’s products and





services being dependent upon the interoperability with rapidly changing systems provided by third parties; BlackBerry’s ability to successfully generate revenue and profitability through the licensing of security software and services or the BlackBerry brand to device manufacturers; the risk that network disruptions or other business interruptions could have a material adverse effect on BlackBerry’s business and harm its reputation; risks related to acquisitions, divestitures, investments and other business initiatives; the risk that failure to protect BlackBerry’s intellectual property could harm its ability to compete effectively and BlackBerry may not earn the revenues it expects from intellectual property rights; BlackBerry’s reliance on third parties to manufacture and repair its hardware products; BlackBerry’s ability to obtain rights to use software or components supplied by third parties; the substantial asset risk faced by BlackBerry, including the potential for additional charges related to its long-lived assets and goodwill; the risk that BlackBerry’s ability to maintain or increase its liquidity; risks related to BlackBerry’s indebtedness; the risk that BlackBerry could be found to have infringed on the intellectual property rights of others; the risk that litigation against BlackBerry may result in adverse outcomes; risks related to government regulations applicable to BlackBerry’s products and services, including products containing encryption capabilities; risks related to the use and management of user data and personal information; risks related to foreign operations, including fluctuations in foreign currencies; risks associated with any errors in BlackBerry’s products and services; the risk of a negative impact on BlackBerry’s business as a result of actions of activist shareholders; risks related to fostering an ecosystem of third-party application developers; risks related to the failure of BlackBerry’s suppliers, subcontractors, third-party distributors and representatives to use acceptable ethical business practices or comply with applicable laws; risks related to health and safety and hazardous materials usage regulations, and product certification risks; costs and other burdens associated with regulations regarding conflict minerals; risks related to BlackBerry possibly losing its foreign private issuer status under U.S. federal securities laws; the potential impact of copyright levies in numerous countries; risks related to tax provision changes, the adoption of new tax legislation, or exposure to additional tax liabilities; risks related to the fluctuation of BlackBerry’s quarterly revenue and operating results; the volatility of the market price of BlackBerry’s common shares; risks related to adverse economic and geopolitical conditions; market and credit risk associated with BlackBerry’s cash, cash equivalents and short-term or long-term investments; the risk that future issuances of common shares by BlackBerry will be dilutive to existing shareholders; and the potential consequences for BlackBerry’s shareholders in the United States if BlackBerry is or was a passive foreign investment company. These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry’s Annual Information Form, which is included in its Annual Report on Form 40-F 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. 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®, BBM™, QNX®, Good® and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the United States and countries around the world. All other trademarks are the property of their respective owners.


###






BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions except share and per share amounts) (unaudited)

Consolidated Statements of Operations  
 
 
For the three months ended
 
 
May 31, 2017
 
February 28, 2017
 
May 31, 2016
Revenue
 
$
235

 
$
286

 
$
400

Cost of sales
 
85

 
114

 
246

Gross margin
 
150

 
172

 
154

Gross margin %
 
63.8
%
 
60.1
%
 
38.5
%
Operating expenses
 
 
 
 
 
 
Research and development
 
61

 
57

 
89

Selling, marketing and administration
 
110

 
143

 
132

Amortization
 
40

 
45

 
54

Impairment of goodwill
 

 

 
57

Impairment of long-lived assets
 

 

 
501

Debentures fair value adjustment

 
218

 
(16
)
 
(24
)
Qualcomm arbitration award
 
(815
)
 

 

 
 
(386
)
 
229

 
809

Operating income (loss)
 
536

 
(57
)
 
(655
)
Investment income (loss), net
 
136

 
8

 
(15
)
Income (loss) before income taxes
 
672

 
(49
)
 
(670
)
Provision for (recovery of) income taxes
 
1

 
(2
)
 

Net income (loss)
 
$
671

 
$
(47
)
 
$
(670
)
Loss per share
 
 

 
 

 
 

Basic
 
$
1.26

 
$
(0.09
)
 
$
(1.28
)
Diluted
 
$
1.23

 
$
(0.10
)
 
$
(1.28
)
 
 
 
 
 
 
 
Weighted-average number of common shares outstanding (000’s)
 
 

 
 

 
 

Basic
 
531,096

 
530,352

 
521,905

Diluted
 
544,077

 
590,852

 
521,905

Total common shares outstanding (000’s)
 
531,476

 
530,497

 
522,517







BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions except per share data) (unaudited)

Consolidated Balance Sheets
As at
 
May 31, 2017
 
February 28, 2017
Assets
 
 
 
 
Current
 
 
 
 
Cash and cash equivalents
 
$
933

 
$
734

Short-term investments
 
1,278

 
644

Accounts receivable, net
 
152

 
181

Other receivables
 
30

 
34

Inventories
 
11

 
26

Income taxes receivable
 
12

 
17

Other current assets
 
48

 
55

 
 
2,464

 
1,691

Long-term investments
 
294

 
269

Restricted cash and cash equivalents
 
48

 
51

Property, plant and equipment, net
 
81

 
91

Goodwill
 
563

 
559

Intangible assets, net
 
569

 
602

Deferred income tax asset
 

 

 
 
$
4,019

 
$
3,263

Liabilities
 
 

 
 

Current
 
 

 
 

Accounts payable
 
$
48

 
$
103

Accrued liabilities
 
204

 
258

Deferred revenue
 
211

 
245

 
 
463

 
606

Long-term debt
 
809

 
591

Deferred income tax liability
 
9

 
9

 
 
1,281

 
1,206

Shareholders’ equity
 
 
 
 

Capital stock and additional paid-in capital
 
2,528

 
2,512

Retained earnings (deficit)
 
227

 
(438
)
Accumulated other comprehensive loss
 
(17
)
 
(17
)
 
 
2,738

 
2,057

 
 
$
4,019

 
$
3,263







BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions except per share data) (unaudited)

Consolidated Statements of Cash Flows
 
 
For the three months ended
 
 
May 31, 2017
 
May 31, 2016
Cash flows from operating activities
 
 
 
 
Net income (loss)
 
$
671

 
$
(670
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
Amortization
 
51

 
72

Deferred income taxes
 

 
32

Stock-based compensation
 
13

 
12

Loss on disposal of property, plant and equipment
 

 
1

Impairment of goodwill
 

 
57

Impairment of long-lived assets
 

 
501

Other-than-temporary impairment on cost-based investments
 

 
7

Debentures fair value adjustment
 
218

 
(24
)
Other
 
1

 
3

Net changes in working capital items:
 
 
 
 
Accounts receivable, net
 
29

 
73

Other receivables
 
4

 
(4
)
Inventories
 
15

 
16

Income taxes receivable
 
(1
)
 
(25
)
Other current assets
 
6

 
8

Accounts payable
 
(55
)
 
8

Income taxes payable
 

 
(9
)
Accrued liabilities
 
(55
)
 
(53
)
Deferred revenue
 
(34
)
 
(66
)
Net cash provided by (used in) operating activities
 
863

 
(61
)
Cash flows from investing activities
 
 
 
 
Acquisition of long-term investments
 
(25
)
 
(163
)
Proceeds on sale or maturity of long-term investments
 

 
32

Acquisition of property, plant and equipment
 
(3
)
 
(4
)
Proceeds on sale of property, plant and equipment
 
1

 

Acquisition of intangible assets
 
(7
)
 
(9
)
Acquisition of short-term investments
 
(1,015
)
 
(389
)
Proceeds on sale or maturity of short-term investments
 
378

 
875

Net cash provided by (used in) investing activities
 
(671
)
 
342

Cash flows from financing activities
 
 
 
 
Issuance of common shares
 
3

 
3

Payment of contingent consideration from business acquisitions
 

 
(15
)
Effect of foreign exchange loss on restricted cash and cash equivalents
 

 
(3
)
Transfer from restricted cash
 
3

 

Net cash used in financing activities
 
6

 
(15
)
Effect of foreign exchange gain on cash and cash equivalents
 
1

 
2

Net decrease in cash and cash equivalents during the period
 
199

 
268

Cash and cash equivalents, beginning of period
 
734

 
957

Cash and cash equivalents, end of period
 
$
933

 
$
1,225

 
 
 
 
 
As at
 
May 31, 2017
 
February 28, 2017
Cash and cash equivalents
 
$
933

 
$
734

Short-term investments
 
1,278

 
644

Long-term investments
 
294

 
269

Restricted cash
 
48

 
51

 
 
$
2,553

 
$
1,698







Document 2

BlackBerry Investor Relations Income Statement Summary
GAAP Income Statement (Three Months Ended)
Q2 FY16
 
Q3 FY16
 
Q4 FY16
 
FY16
 
Q1 FY17
 
Q2 FY17
 
Q3 FY17
 
Q4 FY17
 
FY17
 
Q1 FY18
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software and services
$
73

 
$
155

 
$
131

 
$
497

 
$
142

 
$
138

 
$
160

 
$
182

 
$
622

 
$
160

Handheld devices
206

 
220

 
190

 
884

 
152

 
105

 
62

 
55

 
374

 
37

Service access fees
211

 
173

 
143

 
779

 
106

 
91

 
67

 
49

 
313

 
38

Revenue
490

 
548

 
464

 
2,160

 
400

 
334

 
289

 
286

 
1,309

 
235

Cost of sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
301

 
303

 
251

 
1,183

 
200

 
139

 
94

 
110

 
542

 
85

Inventory write-down
4

 
9

 
3

 
36

 
46

 
97

 
2

 
4

 
150

 

Total cost of sales
305

 
312

 
254

 
1,219

 
246

 
236

 
96

 
114

 
692

 
85

Gross margin
185

 
236

 
210

 
941

 
154

 
98

 
193

 
172

 
617

 
150

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Research and development
122

 
100

 
108

 
469

 
89

 
85

 
75

 
57

 
306

 
61

Selling, marketing and administration
157

 
170

 
166

 
653

 
129

 
138

 
141

 
144

 
553

 
109

Amortization
67

 
68

 
77

 
277

 
54

 
44

 
43

 
45

 
186

 
40

Impairment of goodwill

 

 

 

 
57

 

 

 

 
57

 

Impairment of long-lived assets

 

 

 

 
501

 

 

 

 
501

 

Loss on sale, disposal and abandonment of long-lived assets
34

 
7

 
140

 
195

 
3

 
124

 
46

 
(1
)
 
171

 
1

Debentures fair value adjustment
(228
)
 
(5
)
 
(40
)
 
(430
)
 
(24
)
 
62

 
2

 
(16
)
 
24

 
218

Qualcomm arbitration award

 

 

 

 

 

 

 

 

 
(815
)
Total operating expenses
152

 
340

 
451

 
1,164

 
809

 
453

 
307

 
229

 
1,798

 
(386
)
Operating income (loss)
33

 
(104
)
 
(241
)
 
(223
)
 
(655
)
 
(355
)
 
(114
)
 
(57
)
 
(1,181
)
 
536

Investment income (loss), net
(12
)
 
(16
)
 
(15
)
 
(59
)
 
(15
)
 
(16
)
 
(4
)
 
8

 
(27
)
 
136

Income (loss) before income taxes
21

 
(120
)
 
(256
)
 
(282
)
 
(670
)
 
(371
)
 
(118
)
 
(49
)
 
(1,208
)
 
672

Provision for (recovery of) income taxes
(30
)
 
(31
)
 
(18
)
 
(74
)
 

 
1

 
(1
)
 
(2
)
 
(2
)
 
1

Net income (loss)
$
51

 
$
(89
)
 
$
(238
)
 
$
(208
)
 
$
(670
)
 
$
(372
)
 
$
(117
)
 
$
(47
)
 
$
(1,206
)
 
$
671

Earnings (loss) per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings (loss) per share
$
0.10

 
$
(0.17
)
 
$
(0.45
)
 
$
(0.40
)
 
$
(1.28
)
 
$
(0.71
)
 
$
(0.22
)
 
$
(0.09
)
 
$
(2.30
)
 
$
1.26

Diluted earnings (loss) per share
$
(0.24
)
 
$
(0.17
)
 
$
(0.45
)
 
$
(0.86
)
 
$
(1.28
)
 
$
(0.71
)
 
$
(0.22
)
 
$
(0.10
)
 
$
(2.30
)
 
$
1.23

Weighted-average number of common shares outstanding (000’s)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
526,314

 
525,103

 
524,627

 
526,303

 
521,905

 
522,826

 
526,102

 
530,352

 
525,265

 
531,096

Diluted
667,321

 
525,103

 
524,627

 
651,303

 
521,905

 
522,826

 
526,102

 
590,852

 
525,265

 
544,077

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Adjustments (Three Months Ended, Pre-Tax and After Tax)
Q2 FY16
 
Q3 FY16
 
Q4 FY16
 
FY16
 
Q1 FY17
 
Q2 FY17
 
Q3 FY17
 
Q4 FY17
 
FY17
 
Q1 FY18
LLA impairment charge
$

 
$

 
$

 
$

 
$
501

 
$

 
$

 
$

 
$
501

 
$

Goodwill impairment charge

 

 

 

 
57

 

 

 

 
57

 

Inventory write-down

 

 

 

 
41

 
96

 

 
4

 
141

 

Debentures fair value adjustment
(228
)
 
(5
)
 
(40
)
 
(430
)
 
(24
)
 
62

 
2

 
(16
)
 
24

 
218

Write-down of assets held for sale

 

 

 

 

 
123

 
42

 

 
165

 

RAP charges (including patent abandonments)
79

 
33

 
180

 
344

 
25

 
24

 
24

 
25

 
99

 
17

CORE program charges (recoveries)
6

 
(6
)
 
2

 
11

 
(2
)
 
(2
)
 
(2
)
 

 
(7
)
 

Software deferred revenue acquired
1

 
9

 
23

 
33

 
24

 
18

 
12

 
11

 
65

 
9

Stock compensation expense
14

 
14

 
17

 
60

 
12

 
18

 
15

 
15

 
60

 
13

Acquired intangibles amortization
11

 
18

 
28

 
66

 
28

 
28

 
28

 
28

 
112

 
25

Business acquisition and integration


 
11

 
10

 
22

 
7

 
4

 
5

 
3

 
19

 
11

Qualcomm arbitration award

 

 

 

 

 

 

 

 

 
(954
)
Total Non-GAAP Adjustments (Three Months Ended, Pre-Tax and After Tax)
$
(117
)
 
$
74

 
$
220

 
$
106

 
$
669

 
$
371

 
$
126

 
$
70

 
$
1,236

 
$
(661
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Gross Profit
Q2 FY16
 
Q3 FY16
 
Q4 FY16
 
FY16
 
Q1 FY17
 
Q2 FY17
 
Q3 FY17
 
Q4 FY17
 
FY17
 
Q1 FY18
GAAP revenue
$
490

 
$
548

 
$
464

 
$
2,160

 
$
400

 
$
334

 
$
289

 
$
286

 
$
1,309

 
$
235

Software deferred revenue acquired
1

 
9

 
23

 
33

 
24

 
18

 
12

 
11

 
65

 
9

Non-GAAP revenue
491

 
557

 
487

 
2,193

 
424

 
352

 
301

 
297

 
1,374

 
244

Total cost of sales
(305
)
 
(312
)
 
(254
)
 
(1,219
)
 
(246
)
 
(236
)
 
(96
)
 
(114
)
 
(692
)
 
(85
)
Non-GAAP adjustments to cost of sales
15

 
5

 
4

 
45

 
48

 
103

 
5

 
11

 
167

 
4

Non-GAAP Gross Profit
$
201

 
$
250

 
$
237

 
$
1,019

 
$
226

 
$
219

 
$
210

 
$
194

 
$
849

 
$
163

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA
Q2 FY16
 
Q3 FY16
 
Q4 FY16
 
FY16
 
Q1 FY17
 
Q2 FY17
 
Q3 FY17
 
Q4 FY17
 
FY17
 
Q1 FY18
GAAP operating income (loss)
$
33

 
$
(104
)
 
$
(241
)
 
$
(223
)
 
$
(655
)
 
$
(355
)
 
$
(114
)
 
$
(57
)
 
$
(1,181
)
 
$
536

Non-GAAP adjustments to operating income (loss)
(117
)
 
74

 
220

 
106

 
669

 
371

 
126

 
70

 
1,236

 
(522
)
Non-GAAP operating income (loss)
(84
)
 
(30
)
 
(21
)
 
(117
)
 
14

 
16

 
12

 
13

 
55

 
14

Amortization
163

 
162

 
127

 
616

 
72

 
57

 
53

 
57

 
239

 
51

Acquired intangibles amortization
(11
)
 
(18
)
 
(28
)
 
(66
)
 
(28
)
 
(28
)
 
(28
)
 
(28
)
 
(112
)
 
(25
)
Adjusted EBITDA
$
68

 
$
114

 
$
78

 
$
433

 
$
58

 
$
45

 
$
37

 
$
42

 
$
182

 
$
40

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation from GAAP Net Income (Loss) to Non-GAAP Net Loss and Non-GAAP Loss per Share
Q2 FY16
 
Q3 FY16
 
Q4 FY16
 
FY16
 
Q1 FY17
 
Q2 FY17
 
Q3 FY17
 
Q4 FY17
 
FY17
 
Q1 FY18
GAAP Net Income (Loss)
$
51

 
$
(89
)

$
(238
)
 
$
(208
)
 
$
(670
)
 
$
(372
)
 
$
(117
)
 
$
(47
)
 
$
(1,206
)
 
$
671

Total Non-GAAP adjustments (three months ended, after-tax)
(117
)
 
74

 
220

 
106

 
669

 
371

 
126

 
70

 
1,236

 
(661
)
Non-GAAP Net Income (Loss)
$
(66
)
 
$
(15
)
 
$
(18
)
 
$
(102
)
 
$
(1
)
 
$
(1
)
 
$
9

 
$
23

 
$
30

 
$
10

Non-GAAP Income (Loss) per Share
$
(0.13
)
 
$
(0.03
)
 
$
(0.03
)
 
$
(0.19
)
 
$
0.00

 
$
0.00

 
$
0.02

 
$
0.04

 
$
0.06

 
$
0.02

Shares outstanding for Non-GAAP Income (Loss) per share reconciliation
526,314

 
525,103

 
524,627

 
526,303

 
521,905

 
522,826

 
526,102

 
530,352

 
525,265

 
531,096


Non-GAAP revenue, non-GAAP income (loss) before income taxes, non-GAAP net income (loss), non-GAAP gross profit, adjusted EBITDA and non-GAAP earnings (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. This non-GAAP information should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. You are encouraged to review the Company’s filings on SEDAR and EDGAR. The Company makes no commitment to update the information above subsequently .
























BlackBerry Investor Relations Pre-Tax CORE Charge (Recovery) Details
 
Q2 FY16
 
Q3 FY16
 
Q4 FY16
 
FY16
 
Q1 FY17
 
Q2 FY17
 
Q3 FY17
 
Q4 FY17
 
FY17
 
Q1 FY18
Research and development

 

 

 
2

 

 

 

 

 

 

Selling, marketing and administration
6

 
(6
)
 
2

 
9

 
(2
)
 
(2
)
 
(2
)
 

 
(7
)
 

Total CORE charges (recoveries)
$
6

 
$
(6
)
 
$
2

 
$
11

 
$
(2
)
 
$
(2
)
 
$
(2
)

$

 
$
(7
)
 
$

BlackBerry Investor Relations Pre-Tax RAP Charge Details
 
Q2 FY16
 
Q3 FY16
 
Q4 FY16
 
FY16
 
Q1 FY17
 
Q2 FY17
 
Q3 FY17
 
Q4 FY17
 
FY17
 
Q1 FY18
Cost of sales
$
14

 
$
5

 
$
4

 
$
44

 
$
7

 
$
7

 
$
5

 
$
6

 
$
25

 
$
3

Research and development
14

 
2

 
18

 
47

 
2

 

 
(1
)
 
3

 
4

 
3

Selling, marketing and administration
51

 
26

 
158

 
253

 
16

 
140

 
62

 
16

 
235

 
11

Total RAP charges
$
79

 
$
33

 
$
180

 
$
344

 
$
25

 
$
147

 
$
66


$
25

 
$
264

 
$
17

BlackBerry Investor Relations Amortization of Intangibles and Property, Plant and Equipment Details
 
Q2 FY16
 
Q3 FY16
 
Q4 FY16
 
FY16
 
Q1 FY17
 
Q2 FY17
 
Q3 FY17
 
Q4 FY17
 
FY17
 
Q1 FY18
In cost of sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment
$
10

 
$
13

 
12

 
$
51

 
$
12

 
$
12

 
$
10

 
$
9

 
$
43

 
$
7

Intangible assets
86

 
81

 
38

 
288

 
6

 
1

 

 
3

 
10

 
4

Total in cost of sales
96

 
94

 
50

 
339

 
18

 
13

 
10

 
12

 
53

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In operating expenses amortization
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment
22

 
16

 
15

 
73

 
12

 
8

 
6

 
7

 
33

 
5

Intangible assets
45

 
52

 
62

 
204

 
42

 
36

 
37

 
38

 
153

 
35

Total in operating expenses amortization
67

 
68

 
77

 
212

 
54

 
44

 
43

 
45

 
186

 
40

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total amortization
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment
32

 
29

 
27

 
124

 
24

 
20

 
16


16

 
76

 
12

Intangible assets
131

 
133

 
100

 
492

 
48

 
37

 
37


41

 
163

 
39

Total amortization
$
163

 
$
162

 
$
127

 
$
616

 
$
72

 
$
57

 
$
53


$
57

 
$
239

 
$
51


The information above is supplied to provide meaningful supplemental information regarding the Company’s operating results because such information excludes amounts that are not necessarily related to its operating results. 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. This non-GAAP information should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. You are encouraged to review the Company’s filings on SEDAR and EDGAR. The Company makes no commitment to update the information above subsequently.






SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
 
BlackBerry Limited
 
(Registrant)
 
Date:
 
06/23/2017
 
 
By: 
 
         /s/ Steven Capelli
 
Name: 
Steven Capelli
Title:
Chief Financial Officer



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