BlackBerry earnings are on tap for tomorrow!

By Chris Umiastowski on 18 Jun 2014 04:05 pm EDT
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First thing tomorrow morning BlackBerry will report Q1 results. It should be a great conference call since the company has officially launched the Jakarta phone and they've announced support for Amazon's app store in OS 10.3, which I think could go a long way to resolving many of the most common consumer complaints. But more on that in a separate piece.

As a reminder, last quarter BlackBerry had device sell through of about 3.4 million units (only 1.3 million devices on which they recognized revenue), and BlackBerry 10 made up about 1.1 million units in the quarter. So it will be interesting to see if they reveal any metrics around the sale of OS 10 devices this quarter.

Gross margin was 43% last quarter, primarily because hardware dropped as a percentage of sales, but they also had some decent cost reductions. Despite this, cash flow from operations was negative $553 million last quarter, and their cash balance was $2.7 billion at quarter end. We need to see that number start to stabilize, and recall that Chen promised to get the company to cash flow break-even by the end of the year.

Analysts expect BlackBerry to report revenue of $976 million tomorrow, which is the same as last quarter's number. It all boils down to revenue recognition on hardware, which can be tricky to estimate given sell in vs. sell through and the changes in carrier inventory levels. I think it will be more important to look at stabilization of sell-through on devices and get a sense of potential customer traction on the upcoming BES 12 release expected for November.

Speaking of which … nothing terribly exciting is happening that will drive the financials much between now and November, so I expect the most interesting part of tomorrow to be the analyst Q&A session rather than the actual financial report.

Right after the earnings release BlackBerry also holds their shareholder annual general meeting. We'll be covering the story, so stay tuned.

Topics: BBRY Editorial

Reader comments

BlackBerry earnings are on tap for tomorrow!

104 Comments

Definitely another BIG day tomorrow with first quarter earnings to be reported. I both get excited for and fear these earnings calls...

Feeling like we have some positive momentum this week going into it. Thumbs crossed things go smooth!

Was stuck on a conference call so couldn't reply right away. Nice thing about channels though is that as long as people leave the conversations open, I can reply later, which I did. So anybody who pinged me I still got back to.

I think he running with a Valentine 1...staying one step ahead of the COPs...because of the warning arrows and bogey counter.

Murray Squire Marr

I'll take it as a message from Kevin that it's okay to have fun now and then.

Using Z10, wanting Z30, eyeing Windermere

Nope. But I am running push notifications on my desktop (in development). So if I'm sitting at the computer, I know a post is made the second it goes up. Easy to click the link and be in the running for first comment. :)

I echo the reserved excitement and fear.. I've been asking myself all day, why announce the amazon app store today rather then tomorrow.. It's definitely a good news piece.. so if tomorrow's financial news was going to be bad, which I think we expect right now.. then why not temper it even slightly with this afterwards?

But what if the news tomorrow is good.. what if it's so good they thought this might get lost? could it be?

LOL...

Whatever happens happens.

A good rule of thumb is to assume the worst. We've had situations before where it looked like *all signs* pointed to an awesome earnings call and then got beaten down by shockingly surprising and horrific results.

For example: Maybe part of the deal with Amazon was for BlackBerry to announce this today (since Amazon launched its new cell phone today as well).

Good signs don't seem to have any relation to what a BlackBerry earnings call will be like.

Posted via CB10

Hey...

 

Glass half FULL man.. LOL

 

I'll be down at the investors meeting to see the delight or the carnage first hand. Let's just hope there isn't a riot ;)

Exactly, expect the worst. You can rest assure, no matter happens, BlackBerry is definitely here for the long haul.

BBM CHANNEL - "BB POWERED " C001C1D66

Please tell me you're joking. Umi made a statement that a lot of former BlackBerry users have also made. From today's announcement it sounds like BlackBerry has been listening.

Posted via CB10

Feeling betrayed by Chris & CB about that post isn't an uncommon feeling. There's a difference between how one feels about his OPINION and how one feels about him POSTING that opinion on CrackBerry.

I don't care at all if Kevin hates BlackBerry devices or Chris feels he needs services not available on BB10 devices to be productive: I DO care if the site that is supposed to "champion" BlackBerry pulls the rug out from under them for no good reason: and no, no "good" was done by Chris' post. It's been discussed to death elsewhere, but don't pretend this is just about Chris' opinion: it's about what CrackBerry did to the BlackBerry community in posting that pointless "editorial".

Agreed. If his article was posted in the forums, he would have been promptly redirected to the "Switching to another device?" thread. But I guess he's special.

I disagree. As any other blog post it is an opinion piece. Good on him for posting it.

Posted via CrackBerry App

Lmao.... I think Android Central called; they are looking for you Chris!

 BlackBerry Q10  Keep The Faith 

Why does Crackberry tolerate people that post insulting comments? Too much negative energy in comments like these.

Just wait until Birdman shows up to spread his "dose of reality"... aka negativity and snide remarks about BBRY.

Posted via CB10 from my amazing Q10

Hopefully the market doesnt respond too badly.

I dont think device sales will be anywhere good.

Signature - Google wants your info. What are you gonna do about it?

I guess a BlackBerry classic or BlackBerry windermere launch wouldn't count as exciting? Lol (they're supposed to come out before November)

Posted via CB10

That's not going to have any incredible effect on how much money they have in the bank though during that time, it'll take time for money to come in off those devices. Plus, HOPEFULLY they'll be spending money when those devices are released to some proper marketing.

I'm not sure I want the general public to see the Windermere... Maybe do direct marketing to businesses.

The design of that device is...

Well, I'll just leave it at that LOL

Posted via CB10

Umi, anything to read into the Amazon announcement today? I'm assuming it was proably agreed to some time ago and was thinking maybe it was a balance against what might be seen as ho-hum Z3 numbers out of Indonesia. I don't know anything about those, so trying to figure out how wildly I'm speculating...

Amazon, BBM Protect, and Canadian Mobile Payment deal and Z3 in India.

BlackBerry has announced a lot in the last couple of weeks, helping to add almost 13% to the stock value....

Stock value is temporary unless all these announcements translate into cold hard cash somehow.

If they don't, that stock value could disappear in an instant.

Posted via CB10

Fired? Why fire him when he barely contributes. Especially since he doesn't even use a blackberry. Look at his post. It basically reads, "Um...I really don't care either way what happens tomorrow. Could be good, could be bad. We'll see...". What great keen insight to the complex financial workings of the markets. Traitor!!

I suspect with the announcements lately, tomorrow will have some new one-time write off charges for winding up the music and movies section, any other layoffs asset write-downs etc. Unfortunately due to the timing some of these things might not hit the books until next quarter. But that should be it. This quarter and a little next quarter and then JC will not be given the same latitude for poor results. Take the big bath now and look forward to the good news. And if it's not as bad as all that... then maybe BBRY is already starting to turn the corner?? But I think the smart money is on Q3 and Q4 for better results. Well more Q4 since the new phones won't launch with any time to make an impact in Q3.

I doubt movies and music has any bearing, that was all powered by 7Digital and the terms are either up or they have separation agreements. Simple cut and dry there. 7Digital powered it, took most of (if any profits) and BlackBerry got to offer music and videos for a bit. A lot of stuff is nothing more than a white labeled 7Digital solution.

Bingo.....music and videos can come from anywhere......you don't need itunes etc. in the least. Unless Apple tells you that you do!

Posted via CB10

Fingers crossed for BlackBerry. Don't think much will change but hopefully revenues increase slightly and 2.6 Billion in the bank!

That would be incredibly amazing!

Posted using the best phone ever, the Z30!

Chris U is has been hired because of his understanding of the stock market, of how analysts so their thing. I respect his knowledge and skill in that area, but it obviously does not carry over into his choice of phones. ;)

Chris is here to help us unwashed uneducated masses understand quarterly meeting speak.

Posted via CB10 via my Z10

I have good hopes for tomorrow, don't get me wrong, don't expect profit tomorrow or positive cash flow but I guess they are doing better than expected, why? Just a hunch.

And if Chile beat Spain today anything is possible ;)

I always like ro read Cris posts... Sometimes I agree, sometimes I don't... That's life!
Stop being such childish... I wouldn't trade any of my BB10 for any iThingy or any Androidy... If he did it's his problem...
As for the earnings... They will show things getting more stable. Not great just yet, but getting better.
New revenue sources, and Increasing BB10 phones sales... Maybe decreasing overall sales in phones.
Increasing QNX income, Increasing BES10 adoption, Increasing BBM Adoption and revenue (Yes, stickers!).
And maybe we can have the amount of Z3 sold in Indonesia, just to have an idea of what's to come! :)

Chris is here to write up the bad news to further shore up his android stance. Regardless of the quarter, BB10 mounted on the z30 is the best device I have ever owned. As long as this beast is ticking, no need to go elsewhere.

Posted via CB10

Sounds interesting, anyone going to rock that Amazon Android Beast?

Dynamic Perspective is a custom-designed sensor system that responds to how you hold, view, and move Fire phone
Firefly Technology lets you instantly identify and take action on printed web and email addresses, phone numbers, QR, and bar codes, and over 100 million movies, songs, and products
Mayday - free, live on-device video tech support with an Amazon expert, 24x7, 365 days a year
Limited-time offer: includes a full year of Amazon Prime
Technical Details
Free unlimited cloud storage for all Amazon content and photos taken with Fire Phone
2.2 GHz quad-core Snapdragon 800 processor
64 GB Storage on-board
13MP rear-facing camera with optical image stabilization and smooth 1080p HD videos
Dual stereo speakers with Dolby Digital Plus
Nine bands of LTE, four bands of GSM, five bands of UMTS
4.7-inch HD display
1-year limited warranty and service included

RedBerry Z10 #00167 10.2.1.3175

The 3d stuff is cool, but I don't care for the tilt to scroll idea. It seems like there'd be a good amount of accidental scrolling, but I suppose that'd need to be tested. Firefly is cool too, but I don't use Shazam at all (nor Soundhound), nor do I see myself taking pictures or listening to sound to buy stuff on Amazon. It'd be a limited use. Mayday is pretty compelling. Definitely something that's good for non-technical smartphone users. So that might help them a lot with getting new phone buyers.

So it doesn't wow me and certainly these features don't offset what I like about BB10. I hope it has some success though because then that helps the Amazon Appstore and now with that deal in place, it'll help BB indirectly with the ecosystem. I agree with John Chen that Amazon's phone is targeted to a completely different demographic.

I wonder if GM has advisers that drive a Ford as their car of choice?

I wonder if The Globe and Mail has a writer that only subscribes to the Toronto Star?

I wonder if Rogers has board member that uses Bell as their choice of providers?

Posted via CB10

Save it, mister, they don't even begin to understand how bad they looked when Kevin had to go on BGR, or wherever the hell the other article was to defend Umi's dumb comments on CB....

Sad really...

Founding Member of "Club Z30 "..... the most exclusive club in mobile

Let's hope for some positive news, of course ignoring all the doom and gloom generated by speculators, sharks, pundits and all - around parasites...

Cartman says: Screw you guys I'm going home!

I think Chris' article was fantastic. Honest and what he wrote reflects why so many people are going to Android. There has to be room here for realism. Not every article can be made for the BlackBerry does no wrong crowd. I'm surprised people don't want Kevin to leave because he uses devises other than BlackBerry. Or maybe they do and I've missed it.

Z30 / STA100-5 / 10.2.1.3175 / T-Mobile USA

CrackBerry is now a place where people can write why they don't use BlackBerry anymore right? No one was saying don't have an opinion, don't put it here as a post is all. I've never seen anything like it on Ac or im.

On a second note android boy with opinion (CU) does a great job writing about stock, helps me understand and many others I'm sure what is what.

Photos captured using BlackBerry devices - C00016D81

Personally, only my own business experience, BlackBerry is at their last chance to show the money, or money soon to be next quarter. Otherwise, we, you, myself and I, done for good with BlackBerry. So, expect tomorrow to be the best day ever in BlackBerry's life, something amazing about to happens and to make all of us RUN for celebration. John Chen knows how the market works, and he will squeeze the short like no one ever did before.

@BB..Tommorow is going to be all about how Chen and his new team are about to cash in ,the street believes in him and he really works hard,he flies all over to meet customers in economy class,who doesn't love a guy like that?keep the faith!!

Let's hope cash reserves are north of 2.4 billion. I think that would be viewed as a win.

Posted via CB10

I'm not sure the next several months will be as uninteresting as indicated in this article. Looks like lots are planned for the enterprise front, the Z3 will continue its rollout, we will find out what the purpose of the Windermere is and who knows what else. So I'm going to stay tuned to see how this plays out. Oh, any finally, perhaps Express will come out of Beta and we will see some other neat enterprise apps that will make my professional life a whole lot easier.

Posted via CB10

Eh, I won't be able to listen in if I sleep in. :P
Hoping for the best.

Posted via CrackBerry 10 (CB10) application using my BlackBerry Q10.