BlackBerry announces Q2 Fiscal Year 2021 results

BlackBerry Reports Strong Fiscal 2021 Second Quarter Results, Beating Both Revenue And EPS Expectations

• Total company non-GAAP revenue of $266 million; total company GAAP revenue of $259 million, both reporting sequential and year-on-year growth.
• Non-GAAP earnings per basic and diluted share of $0.11; GAAP loss per basic and diluted share of $0.04.
• Net cash generated from operating activities of $31 million.

Waterloo, Ontario - BlackBerry Limited (NYSE: BB; TSX: BB) today reported financial results for the three months ended August 31, 2020 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

"We are pleased to report sequential and year-over-year revenue growth this quarter, exceeding expectations, despite the ongoing challenges from COVID-19," said John Chen, Executive Chairman & CEO, BlackBerry. "Continued demand for our secure, 'Work from Anywhere', solutions remains a major driver for our BlackBerry Spark business, which performed well this quarter. Some signs of recovery in auto production point to sequential revenue growth and a return to a normal run rate for QNX by early next year. Continued QNX design wins and significant cybersecurity partnerships position the business strongly for the future. We are also seeing positive signs from our focus on the key components of our go-to-market strategy, including: strong channel partnerships, marketing, customer success and investing in new talent for our sales force."

Second Quarter Fiscal 2021 Financial Highlights

• Total company non-GAAP revenue for the second quarter of fiscal 2021 was $266 million. Total company GAAP revenue for the second quarter of fiscal 2021 was $259 million.
• Recurring non-GAAP software product revenue continues to be approximately 90%.
• Non-GAAP gross margin was 78% and GAAP gross margin was 77%.
• Non-GAAP operating earnings were $63 million. GAAP operating loss was $22 million.
• Non-GAAP earnings per share was $0.11 (basic and diluted). GAAP net loss per share was $0.04 (basic and diluted).
• Total cash, cash equivalents, short-term and long-term investments were $977 million.
• Net cash generated from operating activities was $31 million.
• Following quarter-end successfully redeemed existing $605 million of convertible debentures and issued $365 million of new convertible debentures – reducing level of debt by $240 million and saving $16 million of interest expense on an annualized basis.

Second Quarter Achievements

• BlackBerry QNX and Desay SV Automotive together developed the autonomous driving domain controller for Xpeng Motor's new P7 high-performance electric vehicle.
• BlackBerry QNX technology to be used by StradVision, in ADAS and autonomous vehicle systems from South Korean automakers
• Customer wins for new BlackBerry Spark Suites continue to build, including the US Air Force, the UK's Ministry of Defence, the Royal Canadian Mint, Rolls Royce and Lloyds Bank.
• BlackBerry UEM became the only unified endpoint management system approved to be included on DoDIN Approved Products List (APL).
• BlackBerry SecuSUITE for Government received accreditation from Government of Canada.
• BlackBerry Secusmart technology now used by 17 governments around the globe.
• Strong progress in various parts of go-to-market strategy, including recently announced partnership with TELUS to resell BlackBerry AtHoc, the most secure critical event management solution, across Canada. Adds to previous announcements with Bell and Vodafone.

Outlook

BlackBerry will provide fiscal year 2021 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 8:00 a.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 11 a.m. ET by dialing +1 (800) 585-8367 and entering Conference ID #1797999 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 solutions, and is a leader in the areas of endpoint security management, encryption, and embedded systems. BlackBerry's vision is clear - to secure a connected future you can trust. BlackBerry. Intelligent Security. Everywhere.