<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The company’s earnings beat expectations, prompting an after-hours surge of about 5%. However, that gain was quickly wiped out on Wednesday and Thursday as the shares plunged further to trade at $3.31, down from Tuesday’s close of $4.12. This came after analysts revised their revenue outlook down to $990 million compared to an earlier estimate of $1.2 billion. BlackBerry is now down more than 76% since the start of 2018.” data-reactid=”13″>The company’s earnings beat expectations, prompting an after-hours surge of about 5%. However, that gain was quickly wiped out on Wednesday and Thursday as the shares plunged further to trade at $3.31, down from Tuesday’s close of $4.12. This came after analysts revised their revenue outlook down to $990 million compared to an earlier estimate of $1.2 billion. BlackBerry is now down more than 76% since the start of 2018.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="BlackBerry’s management did not provide a financial outlook for 2021 as a result of the coronavirus pandemic. ” data-reactid=”20″>BlackBerry’s management did not provide a financial outlook for 2021 as a result of the coronavirus pandemic.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The company is arguably famous for what did not work out after its BlackBerry phones and tablets failed to match competition. This resulted in a complete change in the industry of operation. BlackBerry now focuses on enterprise software and the internet of things (IoT). ” data-reactid=”21″>The company is arguably famous for what did not work out after its BlackBerry phones and tablets failed to match competition. This resulted in a complete change in the industry of operation. BlackBerry now focuses on enterprise software and the internet of things (IoT).
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The company’s competition has since switched from the likes of Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Ltd (XKRX:005930) to enterprise software companies that include Salesforce.com Inc. (NYSE:CRM), SAP SA (NYSE:SAP) and Microsoft Corp. (MSFT), among others. Nonetheless, the grass has not proven to be any greener yet, with Blackberry still struggling to establish stable top-line growth.” data-reactid=”22″>The company’s competition has since switched from the likes of Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Ltd (XKRX:005930) to enterprise software companies that include Salesforce.com Inc. (NYSE:CRM), SAP SA (NYSE:SAP) and Microsoft Corp. (MSFT), among others. Nonetheless, the grass has not proven to be any greener yet, with Blackberry still struggling to establish stable top-line growth.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Earnings highlights” data-reactid=”23″>Earnings highlights
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In fiscal 2020, BlackBerry posted non-GAAP revenue of $1.1 billion, which reflected about 20% growth from 2019. GAAP revenue also increased by 15% to $1.04 billion. ” data-reactid=”24″>In fiscal 2020, BlackBerry posted non-GAAP revenue of $1.1 billion, which reflected about 20% growth from 2019. GAAP revenue also increased by 15% to $1.04 billion.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="On the other hand, non-GAAP earnings of 13 cents per share beat the management’s guidance of 8 cents per share. The company reported $26 million in cash from operations. Capital expenditure of $12 million resulted in free cash flow of $14 million.” data-reactid=”25″>On the other hand, non-GAAP earnings of 13 cents per share beat the management’s guidance of 8 cents per share. The company reported $26 million in cash from operations. Capital expenditure of $12 million resulted in free cash flow of $14 million.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In the most recent quarter, non-GAAP revenue grew 13% to $290 million, slightly higher than the GAAP revenue of $282 million, which gained 11% from the prior-year quarter.” data-reactid=”26″>In the most recent quarter, non-GAAP revenue grew 13% to $290 million, slightly higher than the GAAP revenue of $282 million, which gained 11% from the prior-year quarter.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The company’s quarterly GAAP net loss of $152 million was a huge slide from a net profit of $93 million posted a year ago. The company spent $35 million for the acquisition of intangibles amortization expense, $27 million in goodwill and long-term asset impairment charges and $17 million in stock compensation expense. There was also a charge of $5 million related to the fair value adjustment on the debentures. All these contributed to the massive difference between the non-GAAP earnings of 9 cents and GAAP net loss of 7 cents per share.” data-reactid=”27″>The company’s quarterly GAAP net loss of $152 million was a huge slide from a net profit of $93 million posted a year ago. The company spent $35 million for the acquisition of intangibles amortization expense, $27 million in goodwill and long-term asset impairment charges and $17 million in stock compensation expense. There was also a charge of $5 million related to the fair value adjustment on the debentures. All these contributed to the massive difference between the non-GAAP earnings of 9 cents and GAAP net loss of 7 cents per share.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Looking forward” data-reactid=”28″>Looking forward
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="BlackBerry is still in a transition phase. The company is developing products that will play a key role in its long-term future. Following the release of the fiscal 2020 earnings results, Executive Chairman and CEO John Chen said that during the year, the company "released over 30 new products and made strong progress on developing BlackBerry’s zero-trust architecture as part of the Spark platform." ” data-reactid=”29″>BlackBerry is still in a transition phase. The company is developing products that will play a key role in its long-term future. Following the release of the fiscal 2020 earnings results, Executive Chairman and CEO John Chen said that during the year, the company “released over 30 new products and made strong progress on developing BlackBerry’s zero-trust architecture as part of the Spark platform.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Spark platform is a data processing framework designed to process tasks quickly on large data sets. It also distributes data sets on multiple computing platforms on its own or together with other computing tools. BlackBerry is targeting the rapidly growing IoT market, which gels well with its enterprise software services business.” data-reactid=”30″>The Spark platform is a data processing framework designed to process tasks quickly on large data sets. It also distributes data sets on multiple computing platforms on its own or together with other computing tools. BlackBerry is targeting the rapidly growing IoT market, which gels well with its enterprise software services business.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The company’s stock currently has a forward 12-month price-earnings ratio of about 33.22 and a trailing 12-month price-sales ratio of 2.56. This appears significantly expensive compared to the likes of SAP’s ratios of 18.02 and 1.54 and IBM (NYSE:IBM), which trades at a forward price-earnings ratio of 8.28 and a price-sales ratio of 1.28. ” data-reactid=”31″>The company’s stock currently has a forward 12-month price-earnings ratio of about 33.22 and a trailing 12-month price-sales ratio of 2.56. This appears significantly expensive compared to the likes of SAP’s ratios of 18.02 and 1.54 and IBM (NYSE:IBM), which trades at a forward price-earnings ratio of 8.28 and a price-sales ratio of 1.28.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Disclosure: No positions.” data-reactid=”32″>Disclosure: No positions.
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