Blackberry 2Q15 Earnings Call Notes

posted in: Notes | 0

CEO John Chen

We continue to lead in mobile security

“The key takeaway here is really that we continue to lead in mobile security and now we are bringing the BlackBerry security know-how into the Android ecosystems. As a result, we believe we can address a larger and growing segment of the enterprise space and we believe we could be a leader in this space.”

Directly addressing analyst research

“I need to clarify two misperceptions from reading the research notes from our Good announcement.”

Discussion of contract manufacturers taking on “unique parts exposure”

” we have both arrangements. We have ones that we will take inventory, or at least parts — I call it the unique parts exposure. Then we have one that we don’t, as you well know. So this, of course, will continue, whether it’s an Android device or a BlackBerry 10 device. So there’s no difference here.”

We’ve stabilized cash flow, now we have to stabilize revenue

“Remember, we all said about a year ago, we were talking about stabilizing the company, the business, and focusing on cash flow from operation. I think we have accomplished that. This year, as we said, we’re going to stabilize the revenue, and unfortunately, we have a really low point here. But we do expect Q3 to level up and maybe even up a little bit, and then Q4 to go up from that level, and as I pointed out, I think we are all very focused on one key psychological win which is our software revenue eventually will cover these — the growth will cover the decline of the SAF and those two equations will converge, maybe that’s a way to put it. And that we expect in Q4.”

We’re still on plan

“We have some very exciting products that we are developing in house here. We haven’t seen the full impact of our IoT investment and that will come. So yes, I’m still on my plan.”


CFO

Changing some financial reporting

“Before I dive into our details, as you probably noticed, we are changing our non-GAAP income statement presentation to exclude purchase accounting deferred revenue write-down, stock based compensation expense, and amortization of purchased or acquired intangibles as part of the M&A transactions.”