BlackBerry Limited BBRY reported breakeven earnings in fiscal first-quarter 2018 (ended May 31) on an adjusted basis, better than a loss of 2 cents per share in the year-ago period. The Zacks Consensus Estimate was of a loss of 2 cents per share. The bottom-line was boosted by the receipt of the arbitration payment of $940 million from U.S. chipmaker Qualcomm Inc. QCOM .
Results in Detail
Total revenue in the reported quarter was $244 million, down 39% year over year. The top line missed the Zacks Consensus Estimate of $264 million. The revenue miss disappointed investors. Consequently shares of the Zacks Rank #3 (Hold) company declined significantly in pre-market trading . You can see t he complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Segment-wise, Enterprise software and services generated approximately 41.4% of the revenues, while BlackBerry Technology Solutions contributed 14.7%. Licensing, IP and other generated 13.1% of the revenues, whereas Handheld devices contributed 15.2%. Services access fees revenues accounted for the balance. Also, the company had over 3,000 enterprise clients in the reported quarter.
Geographically, North America has contributed 54% to the total revenue. While Europe, the Middle East and Africa accounted for 29.8%. Similarly, the Latin America and the Asia-Pacific regions have generated 1.7% and 14.5%respectively, of the total revenue in fiscal first quarter.
Quarterly operating income (on a reported basis) came in at $536 million. However, the company had reported a loss of $655 million in the year-ago quarter.
The company exited first-quarter fiscal 2018 with cash and cash equivalents of $933 million compared with $734 at the end of fiscal 2017. Long-term debt in fiscal first quarter is $809 million as against $591 million at the fiscal 2017-end.
BlackBerry Limited Price, Consensus and EPS Surprise
BlackBerry's expectation for fiscal 2018 remains unchanged. The company expects its software business to either outperform or at least perform on par with the overall market in fiscal 2018. It anticipates profitability (on an adjusted basis) in fiscal 2018 as well as also expects to generate a free cash flow in the same.
Developments in the First Quarter
BlackBerry, whose peers include technology heavyweights like Apple Inc. AAPL , has made a remarkable progress in first quarter, especially in cybersecurity and the Enterprise of Things. Qualcomm and NVIDIA NVDA will be adopting BlackBerry's technology for their automotive platforms, thereby enhancing the company's ecosystem in turn.
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