BlackBerry Posts Q2 Beat, Signs First Secure Licensing Deal – Shares Up 8% Pre-Bell

BlackBerry (BBRY) shares were up almost 8% pre-market Thursday after the company reported fiscal Q2 adjusted EPS of $0.05 per share, five cents above the consensus of analysts polled by Capital IQ, and separately unveiled the signing of its first secure licensing deal.

The deal was sealed with Yangzhou New Telecom Science and Technology, a Yangzhou- and Beijing-based developer and manufacturer of smartphones and IoT devices.

The licensing agreement means Yangzhou New Telecom Science and Technology will develop devices that will be branded by OEMs, carriers and local smartphone brands and marketed as “BlackBerry Secure” due to the use of BlackBerry’s security software.

The first product from the partnership will be an all-touch smartphone, which will use BlackBerry software security and technology from Equiis Technologies Switzerland of Zurich. The new phone is expected to ship early in 2018.

On a reported basis, the company posted a Q2 loss of $0.07 per share, narrowing from a loss of $0.71 per share a year earlier.

The company reported Q2 adjusted revenues of $249 million, which beat expectations for $221.2 million. Reported revenues were $238 million, down from $334 million a year earlier.

The company noted that its software and services revenue gained 26% on the year on an adjusted basis, and 34% on the year on a GAAP basis, to $196 million and $185 million, respectively.

For full fiscal 2018, the company is expecting total non-GAAP revenues in the range of $920 million to $950 million; total non-GAAP software and services revenue growth in the range of 10% to 15%, and positive non-GAAP EPS for the full year. Analysts are expecting FY adjusted revenues of $920.5 million.

Leave a Comment