Invest to secure future: BlackBerry Ltd (NYSE: BB)

On Friday, BlackBerry Ltd (NYSE: BB) remained among the day gainers losers and traded with change of -1.9% on volume of 3103727 shares in the last session as compared to average volume of 4337986 shares. During last trade its minimum price was $4.6 and it gained highest price of $4.7. BB has total market capitalization of $2.64B. Its closing value stands at $4.65.

BlackBerry Limited (BB) recently stated financial results for the three months ended May 31, 2020 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

“BlackBerry QNX was influenced by macro headwinds in the auto and other embedded sectors but we are starting to see signs of a recovery,” stated John Chen, Executive Chairman and CEO, BlackBerry.  “On the enterprise front, we saw good demand from consumers who recognized the necessity for BlackBerry’s security, business continuity, and productivity solutions in an increasingly remote working environment.  BlackBerry is capitalizing on the secular trends of securing and connecting endpoints.”

First Quarter Fiscal 2021 Highlights

Total company non-GAAP revenue for the first quarter of fiscal 2021 was $214M versus $267M last year. Total company GAAP revenue for the first quarter of fiscal 2021 was $206M versus $247M last year.

Recurring non-GAAP software product revenue was over 90%.

Non-GAAP gross margin was 71% versus 75% last year and GAAP gross margin was 69% versus 72% last year.

Non-GAAP operating earnings were $3M versus non-GAAP operating earnings of $5M last year. GAAP operating loss was $645M versus GAAP operating loss of $36M last year.

Non-GAAP earnings per share was $0.02 (basic and diluted) versus non-GAAP earnings per share of $0.01 (basic and diluted) last year. GAAP net loss per share was $1.14 (basic and diluted) versus GAAP net loss per share of $0.06 (basic) and $0.09 (diluted) last year.

First quarter fiscal 2021 GAAP net loss includes $594M in a non-cash, one-time goodwill impairment charge primarily related to the impairment of the BlackBerry Spark® reporting unit, $33M for purchased intangibles amortization expense, $14M in stock compensation expense, a charge of $1M related to the fair value adjustment on the debentures, and other amounts as summarized in the table below.

At May 31, 2020, total cash, cash equivalents, short-term and long-term investments were $955M. Net cash used by operating activities of $31M and capital expenditures of $1M.

Its earnings per share (EPS) expected to touch remained -281.90%for this year. BB has a gross margin of 73.40% and an operating margin of -75.90% while its profit margin remained -75.40% for the last 12 months.

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