Blackberry FY 2Q16 Earnings Call Notes

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BlackBerry’s (BBRY) CEO John Chen on Q2 2017 Results

Exiting hardware development business

“Coming out of Q2, I feel that we are reaching a good inflection point where our financial picture is stable and our pivot to software taking hold. In line with this pivot, we are announcing a new strategic direction in our mobility solutions business, focused on developing and licensing of our security device software as well as the BlackBerry brand. As part of this strategy, we have decided to discontinue all the handset hardware development, only hardware, and to leverage third-party partners to provide that function, I’ll provide some details little later.”

New CFO

“You are all aware by now that James Yersh has decided to leave BlackBerry for personal reasons. James has been with the company since 2008 and our CFO since November 2013 when I came on board.”

What the announcement means

“We really have not outsourced all our development – hardware development or handset development effort. We are taking one or two products outsource it to others, but we’ve been developing our own handset also. So with what I announced today, we will end that activity and rely completely on partners. So working with partners, relying is too strong a word, and working with them to make sure their hardware portfolio is up to spec and competitive, is of course reduce a lot of expenses, not only on operating expenses, but capital that we talk about, we don’t have inventory we need to carry anymore. So it’s a long list of savings, you know, people, equipment and so forth.”