BlackBerry reports fiscal year 2019 Q3 results

BlackBerry today announced their fiscal year 2019 third-quarter results highlighting Non-GAAP total software and services revenue of $228 million with GAAP revenue of $226 million. Total non-GAAP software and services revenue of $219 million, up 10% year-over-year.

"We delivered another solid quarter of performance, resulting in year-over-year double-digit percentage growth for total software and services revenue, earnings per share, and free cash flow" said John Chen, Executive Chairman and CEO, BlackBerry. "I'm excited about the pending Cylance acquisition as it will extend our strategy with cutting-edge AI cybersecurity capabilities and, combined with BlackBerry's capabilities, present the opportunity for revenue acceleration in our businesses, including UEM, QNX and Spark."

To go along with the announcement, you can check out the conference call which kicks off at 8AM ET dialing 1- 866-393-4306 or by registering via the BlackBerry Investors site. A replay of the conference call will be available at approximately 11 a.m. ET on December 20, 2018, by dialing 800-585-8367 and entering Conference ID #3276343. If you're looking for the full table breakdowns, they can be found on the BlackBerry Investors website in addition to the supplemental financial information as well as the transcript once it has been uploaded.

BlackBerry Reports Fiscal Year 2019 Third Quarter Results

Non-GAAP total company revenue of $228 million; GAAP total company revenue of $226 million
Record high non-GAAP total software and services revenue of $219 million; GAAP total software and services revenue of $217 million
Continued strong double-digit revenue growth year-over-year for BlackBerry Technology Solutions, driven by the automotive vertical
Non-GAAP earnings per basic and diluted share of $0.05; GAAP earnings per basic share of $0.11 and GAAP loss per diluted share of $0.01
Free cash flow of $39 million, before considering the impact of restructuring and legal proceedings; free cash flow of $57 million, as reported

WATERLOO, Ontario, Dec. 20, 2018 /PRNewswire/ -- BlackBerry Limited (NYSE: BB;TSX: BB) today reported financial results for the three months ended November 30, 2018 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Third Quarter Fiscal 2019 Results

Total company non-GAAP revenue for the third quarter of fiscal 2019 was $228 million with GAAP revenue of $226 million. Total non-GAAP software and services revenue of $219 million, up 10% year-over-year. Total GAAP software and services revenue was $217 million, up 14% year-over-year. Approximately 88% of third quarter software and services revenue (excluding IP licensing and professional services) was recurring after including perpetual licenses that are now recognized ratably. Non-GAAP gross margin was 76% and GAAP gross margin was 75%.
Non-GAAP operating income was $27 million, and positive for the eleventh consecutive quarter. GAAP operating income was $58 million. Non-GAAP earnings per share was $0.05 (basic and diluted). GAAP net income for the quarter was $0.11 per basic share and a GAAP net loss of $0.01 per diluted share. GAAP net income includes $20 million for acquired intangibles amortization expense, $15 million in stock compensation expense, $1 million in restructuring charges, a benefit of $69 million related to the fair value adjustment on the debentures, and other amounts as summarized in a table below.
Total cash, cash equivalents, short-term and long-term investments was $2.4 billion as of November 30, 2018. Free cash flow, before considering the impact of restructuring and legal proceedings, was positive $39 million. Cash generated from operations was $62 million and capital expenditures were $5 million. Excluding $605 million in the face value of the company's debt, the net cash balance at the end of the quarter was $1.8 billion.

Outlook

BlackBerry re-affirms its outlook for fiscal 2019 with software and services billings and revenue growth, profitability and positive cash flow, as follows:

Total company software and services billings growth is expected to be double-digits
Total software and services revenue growth of between 8% to 10% year-over-year
Non-GAAP earnings per share is expected to be positive
Free cash flow is expected to be positive for the full year

Conference Call and Webcast

A conference call and live webcast will be held today beginning at 8 a.m. ET, which can be accessed by dialing 1- 866-393-4306 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 1-800-585-8367 and entering Conference ID #3276343 and at the link above.

About BlackBerry

BlackBerry enables the Enterprise of Things by providing the technology that allows endpoints to trust one another, communicate securely, and maintain privacy. Based in Waterloo, Ontario, BlackBerry was founded in 1984 and operates globally. The Company trades under the ticker symbol "BB" on the Toronto Stock Exchange and the New York Stock Exchange. For more information visit BlackBerry.com, and follow the company on LinkedIn, Twitter and Facebook.