RESTRUCTURING
Patrizia Licata
Blackberry recorded in the financial statements a net loss of $ 89 million in the third fiscal quarter ended November 28, a result widely anticipated by the market and that does not obscure the return to revenue growth on a quarterly basis for the first time in two years, a figure which analysts interpreted as a sign of recovery. In fact, the revenues, $ 548 million, although down 31% from a year ago, increased by 12% over the second quarter, after nine consecutive quarters of decline.
The loss reported by the Group of Waterloo, in Ontario, in the third quarter (89 million US dollars or 17 cents per share, which compares to a net loss of 148 million, or $ 28 per share, a year ago), reflecting a number of expenses that has weighed on the Canadian producer: $ 38 million in restructuring charges and acquisition, 18 million in amortization of purchased intangible assets, $ 14 million for employee stock option awards, 5 million for adjustments in the value of some debts. Removed restructuring costs and one-time items, on a non-GAAP net loss of Blackberry stops at $ 15 million (3 cents per share).
About 70% of the turnover of Blackberry in the third quarter is related to recurring revenue. The revenues are distributed between hardware (40%), rates of access to services (31%) and software and services (29%). The adjusted EBITDA amounted to $ 114 million and free cash flow amounted to 15 million. The company, which has completed the acquisition of ATHOC and Good Technology in the last quarter, still expects free cash flow and adjusted EBITDA positive for the coming quarters .
The improvement in revenue is due to the strong increase in revenue from software sales and licenses for patents and a higher average selling price for phones. In particular, advances in revenue from software managed to fight for the first time losses on rates of access to legacy systems. The results reported by Blackberry have been well received by the market after the announcement of the quarterly report, the shares have guardagnato 13%.
“ Blackberry has reached numbers in the sales of software that investors have been waiting for,” said the analyst of Morningstar Brian Colello . “I think that investments in security software and is the right move.”
The Executive Chairman and CEO John Chen said he was pleased with the progress made by Blackberry in the priority areas and strategic, noting for example the good reception of the smartphone Priv slider , based on system Android , launched in November. The sequential growth of revenues of 12% in the third quarter, indicated Chen , reflects this positive trend, especially in areas that Blackberry cencentra most of his efforts, such as software enterprise, which have accelerated their growth.
“To continue to support the results, we are increasing investments for further growth in the software and introduce new models of the Priv ,” said Chen . “I expect that this will produce sequential growth in our business software, hardware and messaging in the fourth quarter. “ Blackberry think you can to break even in the current quarter, although it will not be easy because of the continuous investments that serve to raise sales both in software and in hardware, explained Chen . The CEO still sees a return to “sustainable profitability,” in fiscal 2017, which begins next March 1.
© ALL RIGHTS RESERVED 21 December 2015
tag: Blackberry, ATHOC, Good Technology, Morningstar, Brian Colello, John Chen, Priv slider, Android
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