BlackBerry’s Performance in Fiscal 3Q17



Revenue of $301.0 million

On December 20, 2016, BlackBerry (BBRY) announced its fiscal 3Q17 results. It reported non-GAAP (generally accepted accounting principles) revenue of $301.0 million and GAAP revenue of $289.0 million. Its GAAP revenue fell 47.0% YoY (year-over-year), from $548.0 million in fiscal 3Q16. The company achieved non-GAAP EPS (earnings per share) of $0.02 and a GAAP EPS loss of $0.22 in the quarter.

The Software and Services segment accounted for 56.0% of BlackBerry’s total revenue, followed by Service Access Fees (or SAF) at 23.0% and Hardware at 21.0%. In its fiscal 3Q17 earnings call on December 20, BlackBerry said the company had more than 3,000 enterprise customer wins in the quarter. It also said that 80.0% of the revenue in its Software and Services segment was recurring in nature.

John Chen, BlackBerry’s CEO (chief executive officer), said, “We firmly believe that the move to a software business model will be positive for revenue growth going forward, sustainable profitability and overall shareholder value.”

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What did analysts expect in fiscal 3Q17?

Analysts estimated that BlackBerry would post revenues of ~$331.9 million for fiscal 3Q17, which ended in November 2016. Their low estimate was ~$311.5 million, and their high estimate was ~$347.0 million.

The company’s EPS (earnings per share) was estimated at -$0.01, with a high estimate of $0.04 and a low estimate of -$0.03.

While BlackBerry beat the earnings estimate, the company’s revenue fell short of analyst expectations.


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