This morning BlackBerry announced their Q1 fiscal 2016 earnings report. For those unfamiliar, the fiscal year and calendar year don’t often line up. BlackBerry’s fiscal 2016 first quarter was the three months ending May 30, 2015.
Despite many media reports to the contrary, BlackBerry isn’t dead, nor are they going anywhere any time soon. They had a 150% increase in software and licensing revenue over the same quarter in the previous fiscal year. CEO John Chen has repeatedly said that the future of BlackBerry is going to be in software.
From the earnings report press release:
- Software and technology licensing revenue of $137 million, a 150% increase over Q1 FY15
- Positive free cash flow of $123 million in the quarter
- Cash and investments balance of $3.32 billion at the end of the fiscal quarter, an increase of $50 million
over Q4 FY15
- Non-GAAP loss of ($0.05) per share, improving on a loss per share of ($0.11) in Q1 FY15
- Basic GAAP earnings of $0.13 per share
- Non-GAAP operating loss of ($7) million, improving on a non-GAAP operating loss of ($41) million in Q1
- Non-GAAP gross margin of 50.3% and GAAP gross margin of 47.1%
- Adjusted EBITDA of $157 million, a 5% increase over Q1 FY15
- Acquired WatchDox, a leader in high-security document synchronization, sharing and management
- Launched the BlackBerry Leap in April, with availability in 22 markets
- Entered into joint development deals with Wistron and Compal for devices, in addition to the Company’s
existing partnership with Foxconn
Also from the earnings report:
Revenue for the first quarter of fiscal 2016 was $658 million. The revenue breakdown for the quarter was
approximately 40% for hardware, 38% for services and 21% for software and technology licensing. BlackBerry had 2,600 enterprise customer wins in the quarter. Approximately 45% of the licenses associated with these deals are cross-platform. During the first quarter, the Company recognized hardware revenue on approximately 1.1 million BlackBerry smartphones with an ASP of $240.
While BlackBerry is by no means out of the woods yet, John Chen definitely has them moving in the right direction. While hardware sales are still low, it will be interesting to see what an Android-powered BlackBerry device could do to boost those hardware numbers. If they release a Bold or Classic styled phone running Android, I will be in line on day one.
Any of our readers have a special place in their heart for BlackBerry? Would an Android-powered ‘Berry woo you? Let us know in the comments.