JS Conference Call Notes BBRY

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Jeremy S., an investment analyst in Southern California, has started to contribute to Avondale’s company notes database. Below are quotes from some of the calls that Jeremy has read this week.

 

Blackberry (BBRY) is attempting to shift its strategy from a legacy phone manufacturer to a software firm under CEO John Chen.  For those unfamiliar with John Chen’s background, he is the former CEO of Sybase which he sold to SAP in 2010 for $5.8 billion, ultimately generating a 28 percent compounded annual growth rate during his 13 years as CEO at Sybase.  He also currently sits on the Board of Directors at Disney & Wells Fargo.  Chen believes a profitable turnaround and strategy shift at Blackberry is within reach next year and outlined his steps to simplify and streamline the business.  

“On the handset front, we are taking steps to get the business to profitability. A few key actions were taken in the quarter. Number one, we have reduced our spending in hardware through some level of reorganization. Number two, we moved some hardware resources to our software and our Internet of Things efforts.”

Blackberry CEO John Chen went on to emphasize the firm’s emphasis on security

“So I would like to say a few words about security, as it related to cyber security and our mobile security software. In the quarter we made a lot of progress investing in the security strategy, starting with the acquisition of WatchDox. To put this acquisition in context, BlackBerry focuses to expand our leadership in mobile security connectivity and communications. WatchDox expands our portfolio, allows us to protect documents on any device at rest or in transit, even after they left the network.”

Blackberry CEO John Chen said their QNX connected car platform continues to gain momentum

“Lastly, the number of smart cars now on the road using QNX solution is now over 60 million. And in the quarter we also released our features on over the air, the OTA, and I think this represents a very large opportunity for that product.”

Blackberry CEO John Chen said governments continue to embrace the Blackberry platform as security is of the highest importance in that particular sector

“A lot of our customers are in highly regulated industries that are not willing for us to use their name, especially in government agencies. And it’s safe to say, most of all the Canadian government agency users are BES.”