Blackberry FY 1Q14 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“Revenue for the first quarter of fiscal 2014 was $3.1 billion, up 15% from the fourth quarter, and up approximately 9% from one year ago.”

“We shipped 6.8 million smartphones in the first quarter, compared to 6 million in the fourth quarter, which represented a 13% increase. Approximately 40% of these devices were Blackberry 10 devices”

“Europe, Middle East, Africa, our largest region, represented 43% of revenue in Q1, and was up 9%. North America represented 25% of revenue, and was up 30%. Asia-Pacific represented 17% of revenue, and grew 35%, and Latin America represented 15% of our revenue, but was down 6% due to service revenues in Venezuela”

“For the second question of how do we feel about Blackberry 10 and the launch, I think I said this in my script. We’re doing what we said we would do, right? We are launching BES 10, Q10, Q5, more to come. We’re in the middle of it, right?

So it’s really too early to say. We’re building a portfolio right now. Against what my expectation was in Q1, we are performing, and from that perspective, I’m confident in the future of Blackberry 10.

But there’s lots of work to do, there’s lots of new products to be built, there are lots of new products to be launched. There’s lots of marketing campaigns to be generated. So it’s going to be ongoing effort. It’s not automatic.

I know sometimes you guys look at, you know, where is this one product that kills everything else? I tell you, it’s not out there. It is a very competitive market, it has several players. And you’ve got to be on your tippy toes all the time to perform, and that’s what we’re doing.

But we’re not ignoring competition either. And what we have done with Blackberry 10 is build a fantastic, differentiated user experience that users now latch onto. And that doesn’t happen from one week to the other. It doesn’t happen from one month to the other. And it actually doesn’t happen from one quarter to the other.

This a marathon, right? And we are ready, with the financials that we have under our belt, and we’re ready to run that marathon. And that’s what we’re doing. So I’m not looking at the short term. It’s important for me how the BB10 penetrates. It’s important for me how the BES 10 penetrates, and it’s important how is the BBM cross-platform coming along.”

“I love my board, but it’s the C levels in Blackberry that run the operations. And you know, we’re absolutely bang-on with what we wanted to do with the product. We’re executing as we speak. And, you know, whatever’s being discussed in the board room, I probably wouldn’t discuss that on public earnings call.

But I can tell you that we are in sync with our board. We all know what we’re up for here. We’re all together in this fight. And you know, we’re executing, and the last quarter has shown that we execute against what we say we would do in that very quarter. And that’s the only thing that matters at the moment to the board and to the executive management of Blackberry.”