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At the end of 3Q18 earnings call, CEO John Chen confirmed that $BB will participate in the Detroit Auto Show during Jan. 2018. Chen will deliver a keynote presentation on Jan. 15, 2018 in the Detroit Auto Show, and he is expected to unveil a BlackBerry product that will help to shape and secure the future of connected and self-driving cars.
Based on the customer wins so far in the fiscal year, $BB confirmed its outlook for FY18. Non-GAAP revenue is expected to be in the mid to high range of the previously provided outlook ($920-950MM). BlackBerry also maintained the previous expectations of hitting 10-15% growth in software and services revenue and achieving positive non-GAAP EPS.
$BB reported a wider net loss in 3Q18, hurt by Nokia arbitration charges of $149MM. Net loss expanded to $275MM or $0.52 per share from a net loss of $118MM or $0.22 per share in the prior year quarter. GAAP revenue dropped 22% to $226MM, while non-GAAP EPS rose 50% to $0.03 from the year-ago quarter.
$BB loses a dispute to $NOK and will pay $137MM, which will be recorded as a one-time GAAP charge, as the International Court of Arbitration ruled against BlackBerry. The dispute is related to a patent license contract between the erstwhile kings of mobiles. BlackBerry plans to continue the legal remedies against its rival in the US and Germany.
$BBRY agrees to drop the patent lawsuit against BLU Products. As per the confidential patent license agreement, BlackBerry will receive ongoing payments from BLU. In Aug. 2016, BlackBerry filed patent infringement case against BLU Products accusing that without the former’s permission, the latter used BlackBerry’s patents for producing mobiles.
$BBRY, which reported its 2Q18 results on Sept. 28, plans to move from NASDAQ to NYSE and will start trading under the new ticker symbol "BB" from Oct. 16 in NYSE. Representatives of BlackBerry would ring the NYSE opening bell on Oct. 16. The Canadian tech firm will continue to trade with the same ticker symbol "BB" in Toronto Stock Exchange (TSX).
$BBRY has signed a deal with Tokyo-based semiconductor firm Tokyo Electron Device Ltd to provide Japanese manufacturers access to BlackBerry's QNX Software Development Platform 7.0. BlackBerry's QNX is a 64-bit OS that increases security and performance in medical devices, surgical robots, and other safety and mission critical applications.
John Chen, who joined $BBRY as its CEO in 2013 and shifted the company's focus from hardware to software, stated that the enterprise software business has got global footprint. Since BlackBerry has got strong employee base in North America and Europe, the company plans to expand in Middle East and Asia.
$BBRY's hardware partners, TCL from China and BB Merah Putih from Indonesia, started shipping BlackBerry branded devices. Optiemus in India is expected to start selling devices in 3Q18. The company also partnered with NTD of China and Equiis of Switzerland to deliver white label smartphones to carrier customers in Africa, Asia, and Latin America.
For FY18, $BBRY aims to achieve total non-GAAP revenue in the range of $920-950MM. “Based on our progress thus far in FY18, we are on track to achieve software and services revenue growth in the range of 10-15% and profitability for the full year,” said CEO John Chen.
$BBRY, which had lost its smartphone market share to $AAPL and Samsung, reported a net income of $19MM in 2Q18 versus a loss of $372MM a year ago, aided by 34% jump in Software and Services revenue. On a per share basis, loss narrowed to $0.07 from the $0.71 loss reported in 2Q17. Revenue plunged 29% to $238MM while non-GAAP EPS stood at $0.05.
$BBRY and auto supplier Delphi enters into a partnership. BlackBerry QNX, $BBRY's embedded software platform on the autonomous vehicle market, to be used in Delphi's self-driving cars. As per the deal, Delphi and BlackBerry QNX will collaborate to enhance the software performance and safety in self-driving cars.
$DLPH, a technology company in the automotive sector, has entered into a partnership with $BBRY to develop the operating system for its autonomous driving system. As per the deal, Delphi and BlackBerry QNX will collaborate to enhance software performance and safety so as to improve the autonomous driving technology.
In the next year or two, $BBRY anticipates growth in sales and marketing more than the growth in R&D. The company plans to be more aggressive in marketing by doing traditional advertising, running developer conferences and security conferences, and meeting customers.
$BBRY launched two smartphones (BlackBerry Aurora and BlackBerry KEYone) in 1Q18. KEYone was launched in UK, Germany and North America at the end of 1Q18. BlackBerry added that the initial receptivity and demand for KEYone has been quite good. Aurora device has been rolled out to 655 retail locations in Indonesia.
Later in 2017, $BBRY plans to bring the vehicle management portal to provide cyber-security solution for automobiles. This will target a large and growing automotive technology service market. Initially, the solution would be provided to OEMs, and then BlackBerry plans to expand the distribution through a subscription based recurring revenue model.