BlackBerry Limited (NYSE:BB) Q3 2018 Earnings Conference Call Transcript
Dec 20, 2017 • 08:00 am ET
Good morning, and welcome to BlackBerry's Fiscal 2018 Third Quarter Conference Call. (Operator Instructions) I will now turn the call over to Phil Kurtz, VP, Deputy General Counsel and Assistant Corporate Secretary for BlackBerry.
Thank you, operator. Welcome to BlackBerry's Fiscal 2018 Third Quarter Results Conference Call. With me on the call today are Executive Chairman and CEO, John Chen; and CFO and COO, Steve Capelli.
After I read our cautionary note regarding forward-looking statements, John will provide a business update and Steve will then review the third quarter results. We will then open up the call for a 30-minute Q&A session. (Operator Instructions) This call is available to the general public via call-in numbers and via webcast in the Investor Information section at blackberry.com. A replay will also be available on the blackberry.com website.
(Forward-Looking Cautionary Statements)
I will now turn the call over to John.
Thank you, Phil. Good morning, everybody, and welcome to the BlackBerry Fiscal 2018 Third Quarter Results Conference Call. As been customary, during the call, I will reference to non-GAAP numbers in my summary of our quarter results and there is a reconciliation table of GAAP to non-GAAP in the press release.
We had a very strong quarter, and I'm very pleased with our results. We delivered record software and services revenue of $199 million, which represent 85% of our total company revenue and led to a record gross margin on the company level of 77%. We made progresses in expanding our channels across our key growth area. We have significant wins in regulated industry. These accomplishments strengthen our foundation for future growth. In our enterprise business, we continue to see strong momentum in Q3. The enterprise team execute very well and deliver double-digit billings growth year-over-year. In the BlackBerry technology solutions business, which including better software and assets tracking, we again delivered key design wins. We will obviously translate these with the design wins in future revenue.
I would share additional details of our business accomplishment in the quarter later on the call. First, I will provide summary of our Q3 results. You have the press release in front of you. Total company revenue came in at $235 million. Total software and services revenue was a record $199 million, which represents 16% year-over-year growth and broke the record -- the revenue record that we set last quarter. Gross margin reached a record high of 77% and broke the record that we -- again, broke the record that we set last quarter of 76%. Operating income was $16 million and operating margin was 7% versus 4% a year ago. This is the seventh consecutive quarter of positive operating income. EPS came in at $0.03. Total ending cash was $2.5 billion.
Now I will cover a few of our significant business accomplishments. In Q3, we maintained our track records of delivering good progress on our strategy across all our four synergistic growth area. Let me remind everybody what they are. One, obviously -- the first one