Revenues from this segment rose 29%
So far in this series, we’ve noted that BlackBerry (BB) reported sales of $214.0 million in its second quarter of fiscal 2019.[1. fiscal Q2 2019 ended August 31] Its GAAP revenues totaled $210.0 million. BlackBerry’s major business segments are Enterprise Software & Services, BlackBerry Technology Solutions (or BTS), and Licensing, IP and Other.
The revenues from BlackBerry Technology Solutions rose 29.0% year-over-year to $49.0 million and accounted for 23.0% of the company’s total revenues in the second quarter of fiscal 2019. This was the third consecutive quarter in which BTS sales approached 30.0%.
These revenues were driven primarily by BlackBerry QNX, the company’s Unix-based operating system. The company noted that its revenue growth was broad-based across its applications. BlackBerry experienced growth in its infotainment systems and non-infotainment systems such as Advanced Driver Assistance (or ADAS).
In the above chart, we can see that the company’s BTS sales rose 12.0% to $151.0 million in fiscal 2017 and rose 8.0% to $163.0 million in fiscal 2018.
Traction via BlackBerry QNX
During the company’s earnings call on September 28, BlackBerry’s CEO John Chen stated, “A notable design win in the quarter was for next-generation digital cockpit for a multi-national auto OEM through our Tier 1 partners Yanfeng Visteon.”
BlackBerry remains optimistic about applications for its QNX technology, driven by its safety certification and security capabilities. The company increased the number of qualified worldwide channel partners for BlackBerry QNX to 48, an increase of 20.0% in the last six months.
Channel partners were added in South Korea, China (FXI), Japan (EWJ), and the United States. BlackBerry has QNX licensing agreements with companies such as Jaguar Land Rover, Baidu (BIDU), and Qualcomm (QCOM).