BlackBerry Ltd (NASDAQ:BBRY) Q1 2018 Earnings Conference Call - Preliminary Transcript

Jun 23, 2017 • 08:00 am ET


BlackBerry Ltd (NASDAQ:BBRY) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Welcome to the BlackBerry's Fiscal 2018 First Quarter Conference Call. [Operator Instructions] I'll turn call over to Charlie Chen, Vice President of Investor Relations for BlackBerry.

Charlie Chen

Thank you, operator. Welcome to BlackBerry's Fiscal 2018 first quarter results conference call. With me on the call today are Executive Chairman and Chief Executive Officer, John Chen; and Chief Financial Officer, Steve Capelli. After I read our cautionary note regarding forward-looking statements, John will provide a business update and Steve will then review the first quarter results. We will then open up the call for a 30 minute Q&A session. In order to let as many people as possible ask questions, please limit yourself to one question. This call is available to the general public via call-in numbers and via webcast in the Investor Relations section at A replay will also be available on the website.

Some of the statements we will be making today constitute forward-looking statements and are made pursuant to the safe harbor provisions of applicable U.S. and Canadian Securities laws. We will indicate forward-looking statements by using words such as expect, will, should, model, intend, believe and similar expressions. Forward-looking statements are based on estimates and assumptions made by the company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the company believes are relevant.

Many factors could cause the company's actual results or performance to differ materially from those expressed or implied by the forward-looking statements, including the risk factors that are discussed in the company's Annual Information Form, which is included in our annual report on Form 40-F and in our MD&A. You should not place undue reliance on the company's forward-looking statements. The company has no intention and undertakes no obligation to update or revise any forward-looking statements, except as acquired by law.

I will now turn the call over to John.

John Chen

Thank you. Thank you, Charlie. Good morning, everybody, and welcome to our call. As customary, I will reference non-GAAP number in my summary of our quarterly results. There is a reconciliation table of GAAP to non-GAAP results in the press release.

In the first quarter, we made good progress in strengthening our strategic position in high-growth emerging markets and particularly, the connected car and the cybersecurity space. We secured key design wins and expanded our ecosystem to set the stage for long-term growth. I'll provide some highlights later in the script here.

Notably, our balance sheets continue to strengthen with the completion of our transition to a software business model and the increase of cash-- as well as the increase of cash from the positive outcome of the Qualcomm arbitration. This gives us increased capacity for driving shareholder value, both short term and long-term. Again, I'll come back-- I have a brief update on that later on.

First, let me now provide summary of our Q1 results. Total revenue was $244 million. Total company software and services revenue was