BlackBerry Limited (NYSE:BB) Q1 2020 Earnings Conference Call - Final Transcript

Jun 26, 2019 • 08:00 am ET

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BlackBerry Limited (NYSE:BB) Q1 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. We will now begin the question and answer session. [Operator Instructions]. We'll pause for just a moment to allow everyone an opportunity to signal for questions. We request that you limit yourself to one question and one follow-up.

And our first question comes from Daniel Chan from TD Securities. Your line is open.

Analyst
Daniel Chan

Well, hi. Good morning.

Executive
John Chen

Good morning.

Analyst
Daniel Chan

John, any early surprises from the Cylance integration, either positive or negative, that you hadn't anticipated seven months ago?

Executive
John Chen

The positive -- there are a lot of good positive things. The most positive thing is the technology side. The team works extremely well together. We put our integration plan in putting the technology together wonderfully, putting AI capability onto UEM endpoints to differentiate ourselves. That goes very well; progress made. We set up the team on both ends and things are just moving along very nicely. As I said earlier in my script, we expect that to be done within this fiscal year. Will be done meaning to be released as a product, so that's reasonably record time.

The next team that has launched is to look into putting Cylance AI technology onto the Automotive platform on the QNX. That is going on very well, too. Lots of ideas exchanged. A little behind in terms of launching that, partly because QNX have a pretty full schedule for the two products that I mentioned earlier, and that will come shortly after. I think on the technological side it's very, very positive.

The sales, we're starting slow. As I said a couple of quarters ago, BlackBerry is a mobile first company, so all our product runs are Mobility. Cylance is more for focus on PC and routers and servers in fixed point assets, so it's important that we align our product roadmap to cover end-to-end, from Mobile all the way to server and routers, and when we do that -- which is, again, within a year that we are talking about -- then I think there will be a lot more synergies kicked in from the sales side, on the revenue side.

Analyst
Daniel Chan

That sounds good. I'm also wondering if you had any thoughts on what you think might be weighing on the stock price. We've seen the shares underperform the overall market and I think the CrowdStrike IPO has some positive readthrough for you. Does anything come up in your discussions that may explain it?

Executive
John Chen

Hey. Good question. We obviously pay attention to the stock price, especially it seems it is weaker than the market, and in discussing with our shareholders I think their concerns is -- one concern we eliminated by the CrowdStrike IPO. Their concern is, A, has BlackBerry overpaid Cylance? Paid too much for Cylance? And B, could BlackBerry really integrate the business? This is a good opportunity, and thanks for asking the question, number one, I think this is a completely undervalued asset. If you look at what we paid for Cylance, you will see that it will