UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of September, 2014

Commission File Number 000-29898

 

 

BlackBerry Limited

(Translation of registrant’s name into English)

 

 

2200 University Avenue East,

Waterloo, Ontario, Canada

N2K 0A7

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ¨            Form 40-F  x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

 

 

 


DOCUMENTS INCLUDED AS PART OF THIS REPORT

 

Document

   
1   BlackBerry Narrows Non-GAAP Loss per Share to ($0.02) on
  Broad-Based Operational Progress in Fiscal 2015 Second Quarter
2   BlackBerry Supplemental Financial Information

This Report on Form 6-K is incorporated by reference into the Registration Statements on Form S-8 of the Registrant, which were originally filed with the Securities and Exchange Commission on March 28, 2002 (File No. 333-85294), October 21, 2002 (File No. 333-100684), April 28, 2008 (File No. 333-150470), October 3, 2011 (File No. 333-177149), July 10, 2013 (File No. 333-189880), December 20, 2013 (File Nos. 333-192986 and 333-192987) and on July 25, 2014 (File No. 333-197636).


Document 1


September 26, 2014

FOR IMMEDIATE RELEASE

BlackBerry Narrows Non-GAAP Loss per Share to ($0.02) on Broad-Based Operational Progress in Fiscal 2015 Second Quarter

Waterloo, ON – BlackBerry Limited (NASDAQ: BBRY; TSX: BB), a global leader in mobile communications, today reported financial results for the three months ended August 30, 2014 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Q2 Highlights:

 

    Cash and investments balance of $3.1 billion at the end of the fiscal quarter, up $11 million from the prior quarter

 

    Normalized cash use of $36 million in the quarter, compared to $255 million in the prior quarter

 

    Non-GAAP gross margin of 47.5%, driven by positive non-GAAP hardware gross margin

 

    Breakeven non-GAAP operating margin

 

    The EZ Pass Program has resulted in a total of 3.4 million licenses issued for BES10, a nearly three-fold increase from last quarter, with 25% of total licenses traded in from competitors’ Mobile Device Management platforms

 

    91 million monthly active BBM users, up from 85 million in the prior quarter

 

    Created the BlackBerry Technology Solutions unit, encompassing QNX (embedded software), Certicom (cryptography), Paratek (antenna tuning), the patent portfolio and the Internet of Things strategy

 

    Announced an agreement to acquire Secusmart, a leader in high-security voice and text encryption, and recently announced the acquisition of Movirtu, a provider of virtual SIM solutions, after the end of the quarter

Q2 Results

Revenue for the second quarter of fiscal 2015 was $916 million. The revenue breakdown for the quarter was approximately 46% for hardware, 46% for services and 8% for software and other revenue. During the second quarter, the Company recognized hardware revenue on approximately 2.1 million BlackBerry smartphones. During the second quarter, approximately 2.4 million BlackBerry smartphones were sold through to end customers, which included shipments made and recognized prior to the second quarter and which reduced the Company’s inventory in channel.

Non-GAAP loss for the second quarter was $11 million, or $0.02 per share. GAAP net loss for the second quarter was $207 million, or a $0.39 loss per share. The GAAP net loss includes a non-cash charge associated with the change in the fair value of the Debentures of $167 million (the “Q2 Fiscal 2015 Debentures Fair Value Adjustment”) and pre-tax restructuring charges of $33 million related to the restructuring program. The impact of these adjustments on GAAP net loss and loss per share is summarized in a table below.

Total cash, cash equivalents, short-term and long-term investments was $3.1 billion as of August 30, 2014. The Company used $36 million in the second quarter, excluding net receipts of $47 million related to non-strategic operations during the quarter. Purchase obligations and other commitments amounted to approximately $1.6 billion as of August 30, 2014, with purchase orders with contract manufacturers representing approximately $344 million of the total.

“We delivered a solid quarter against our key operational metrics, and we are confident that we will achieve breakeven cash flow by the end of FY15,” said John Chen, Executive Chairman and CEO, BlackBerry. “Our workforce restructuring is now complete, and we are focusing on revenue growth with judicious investments to further our leadership position in enterprise mobility and security, driving us towards non-GAAP profitability during FY16.”


Outlook

The Company continues to anticipate maintaining its strong cash position, while increasingly looking for opportunities to prudently invest in growth. The Company continues to target break-even cash flow results by the end of fiscal 2015.

Reconciliation of GAAP gross margin, gross margin percentage, loss before income taxes, and net loss to Non-GAAP gross margin, gross margin percentage, loss before income taxes, net loss and loss per share:

(United States dollars, in millions except per share data)

 

     Gross
margin(1)
(before
taxes)
     Gross margin
%(1) (before
taxes)
    Loss before
income
taxes
    Net loss     Loss per
share
 

As reported

   $ 425         46.4   $ (218   $ (207   $ (0.39

Adjustments:

           

Restructuring charges (2)

     10         1.1     33        29     

Q2 Fiscal 2015 Debenture Fair Value Adjustment (3)

     —           —       167        167     
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted

   $ 435         47.5   $ (18   $ (11   $ (0.02
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Note: Non-GAAP gross margin, non-GAAP gross margin percentage, non-GAAP loss before income taxes, non-GAAP net loss and non-GAAP loss per share do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company’s operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of the Company’s GAAP results.

 

(1) During the second quarter of fiscal 2015, the Company reported GAAP gross margin of $425 million or 46.4% of revenue. Excluding the impact of the restructuring charges included in cost of sales, the non-GAAP gross margin was $435 million, or 47.5%.
(2) During the second quarter of fiscal 2015, the Company incurred charges related to the restructuring program of $33 million pre-tax, or $29 million after tax, of which $10 million were included in cost of sales, $19 million were included in research and development and $4 million were included in selling, marketing, and administration expenses.
(3) During the second quarter of fiscal 2015, the Company recorded the Q2 Fiscal 2015 Debentures Fair Value Adjustment of $167 million. This adjustment was presented on a separate line in the Consolidated Statement of Operations.

Supplementary Geographic Revenue Breakdown

(United States dollars, in millions except per share data)

 

     For the quarter ended  
     August 30, 2014     May 31, 2014     March 1, 2014     November 30, 2013     August 31, 2013  

North America

   $ 297         32.4   $ 276         28.6   $ 297         30.4   $ 340         28.5   $ 414         26.3

Europe, Middle East and Africa

     368         40.2     414         42.9     412         42.2     549         46.0     686         43.6

Latin America

     111         12.1     125         12.9     127         13.0     135         11.3     196         12.5

Asia Pacific

     140         15.3     151         15.6     140         14.4     169         14.2     277         17.6
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 916         100.0   $ 966         100.0   $ 976         100.0   $ 1,193         100.0   $ 1,573         100.0
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 


Conference Call and Webcast

A conference call and live webcast will be held beginning at 8 am ET, which can be accessed by dialing 1-888-503-8168 or by logging on at http://ca.blackberry.com/company/investors/events.html. A replay of the conference call will also be available at approximately 10 am by dialing 1-647-436-0148 and entering pass code 8015758# or by clicking the link above. This replay will be available until midnight ET October 10th, 2014.

About BlackBerry

A global leader in mobile communications, BlackBerry® revolutionized the mobile industry when it was introduced in 1999. Today, BlackBerry aims to inspire the success of our millions of customers around the world by continuously pushing the boundaries of mobile experiences. Founded in 1984 and based in Waterloo, Ontario, BlackBerry operates offices in North America, Europe, Middle East and Africa, Asia Pacific and Latin America. The Company trades under the ticker symbols “BB” on the Toronto Stock Exchange and “BBRY” on the NASDAQ. For more information, visit www.BlackBerry.com.

Investor Contact:

BlackBerry Investor Relations

+1-519-888-7465

investor_relations@blackberry.com

###

This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements regarding: BlackBerry’s expectations regarding maintaining its strong cash position while investing in growth opportunities, and the anticipated opportunities and challenges in fiscal 2015; BlackBerry’s ability to achieve break-even cash flow results by the end of fiscal 2015 and reach profitability in fiscal 2016; BlackBerry’s plans, strategies and objectives, including the anticipated benefits of recently announced strategic initiatives; anticipated demand for and the timing of, new product and service introductions, and BlackBerry’s plans and expectations relating to its existing and new product and service offerings, including BES 10, BES 12, BlackBerry 10 smartphones, services related to BBM and QNX software products; the ability to achieve further reductions in operating expenditures and maintain the cost savings realized through the restructuring program; BlackBerry’s anticipated levels of decline in service revenue in the third quarter of fiscal 2015; BlackBerry’s expectations for software revenue in fiscal 2015 and 2016; BlackBerry’s expectations regarding adjusted gross margin percentage for the next several quarters; BlackBerry’s anticipated income tax recovery rate for the remainder of fiscal 2015; BlackBerry’s expectations with respect to the sufficiency of its financial resources; BlackBerry’s estimates of purchase obligations and other contractual commitments; and assumptions and expectations described in BlackBerry’s critical accounting estimates and significant accounting policies. The terms and phrases “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “intend”, “believe”, “plan” and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances. Many factors could cause BlackBerry’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the “Risk Factors” section of BlackBerry’s Annual Information Form, including: risks related to BlackBerry’s ability to implement and realize the benefits of its strategic initiatives, including a return to its core strengths of enterprise and security, changes to its Devices business, including the partnership with Foxconn, and the planned transition to an operating unit organizational structure consisting of the Devices business, Enterprise Services, BlackBerry Technology Solutions, including the QNX embedded business, and Messaging; BlackBerry’s ability to maintain existing enterprise customer relationships and to transition such customers to the BES 10 and BES 12 platforms and deploy BlackBerry 10 smartphones, and the risk that current BES 10 and BES 12 test installations may not convert to commercial installations; BlackBerry’s ability to enhance its current products and services, or develop new products and services in a timely manner or at competitive prices, including risks related to new product introductions; risks related to acquisitions, divestitures and investments which may negatively affect the Company’s results of operations; risks related to intense competition, rapid change and significant strategic alliances within BlackBerry’s industry, including recent and potential future strategic transactions by its competitors or carrier partners, which could continue to weaken its competitive position; risks related to BlackBerry’s ability to adapt to, and realize the anticipated benefit of, recent management changes; and the risk that uncertainty relating to BlackBerry’s previously disclosed announcements concerning its operational restructuring, recent management changes and workforce reductions, may adversely impact BlackBerry’s business, existing and future relationships with business partners and end customers of its products and services, and its ability to attract and retain key employees. These risk factors and others relating to BlackBerry are


discussed in greater detail in the “Risk Factors” section of BlackBerry’s Annual Information Form, which is included in its Annual Report on Form 40-F and the “Cautionary Note Regarding Forward-Looking Statements” section of BlackBerry’s MD&A (copies of which filings may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on BlackBerry’s forward-looking statements. BlackBerry has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The BlackBerry family of related marks, images and symbols are the exclusive properties and trademarks of BlackBerry Limited. BlackBerry, BBM, QNX and related trademarks are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries. All other brands, product names, Company names, trademarks and service marks are the properties of their respective owners.


BlackBerry Limited

Incorporated under the Laws of Ontario

(United States dollars, in millions except share and per share amounts) (unaudited)

Consolidated Statements of Operations

 

     For the three months ended     For the six months ended  
     August 30,
2014
    May 31,
2014
    August 31,
2013
    August 30,
2014
    August 31,
2013
 

Revenue

   $ 916      $ 966      $ 1,573      $ 1,882      $ 4,644   

Cost of sales

          

Cost of sales

     484        494        1,013        978        3,042   

Inventory write-down

     7        21        627        28        627   

Supply commitment charges

     —          —          307        —          307   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     491        515        1,947        1,006        3,976   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     425        451        (374     876        668   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin %

     46.4     46.7     (23.8 )%      46.5     14.4

Operating expenses

          

Research and development

     186        237        360        423        718   

Selling, marketing and administration

     195        400        527        595        1,200   

Amortization

     75        81        171        156        351   

Debentures fair value adjustment

     167        (287     —          (120     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     623        431        1,058        1,054        2,269   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     (198     20        (1,432     (178     (1,601

Investment loss, net

     (20     (26     (6     (46     (1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (218     (6     (1,438     (224     (1,602

Recovery of income taxes

     (11     (29     (473     (40     (553
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (207   $ 23      $ (965   $ (184   $ (1,049
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) per share

          

Basic

   $ (0.39   $ 0.04      $ (1.84   $ (0.35   $ (2.00
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ (0.39   $ (0.37   $ (1.84   $ (0.41   $ (2.00
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average number of common shares outstanding (000’s)

          

Basic

     527,218        526,742        524,481        526,980        524,320   

Diluted

     527,218        658,228        524,481        651,980        524,320   

Total common shares outstanding (000’s)

     527,430        526,908        524,639        527,430        524,639   


BlackBerry Limited

Incorporated under the Laws of Ontario

(United States dollars, in millions except per share data) (unaudited)

Consolidated Balance Sheets

 

As at

   August 30,
2014
    March 1,
2014
 

Assets

    

Current

    

Cash and cash equivalents

   $ 1,523      $ 1,579   

Short-term investments

     1,178        950   

Accounts receivable, net

     658        972   

Other receivables

     162        152   

Inventories

     113        244   

Income taxes receivable

     124        373   

Other current assets

     297        505   

Deferred income tax asset

     38        73   

Assets held for sale

     31        35   
  

 

 

   

 

 

 
     4,124        4,883   

Long-term investments

     329        129   

Restricted cash

     68        —     

Property, plant and equipment, net

     582        1,101   

Intangible assets, net

     1,433        1,439   
  

 

 

   

 

 

 
   $ 6,536      $ 7,552   
  

 

 

   

 

 

 

Liabilities

    

Current

    

Accounts payable

   $ 217      $ 474   

Accrued liabilities

     870        1,214   

Deferred revenue

     435        580   
  

 

 

   

 

 

 
     1,522        2,268   

Long term debt

     1,507        1,627   

Deferred income tax liability

     32        32   
  

 

 

   

 

 

 
     3,061        3,927   
  

 

 

   

 

 

 

Shareholders’ Equity

    

Capital stock and additional paid-in capital

     2,438        2,418   

Treasury stock

     (173     (179

Retained earnings

     1,210        1,394   

Accumulated other comprehensive income (loss)

     —          (8
  

 

 

   

 

 

 
     3,475        3,625   
  

 

 

   

 

 

 
   $ 6,536      $ 7,552   
  

 

 

   

 

 

 


BlackBerry Limited

Incorporated under the Laws of Ontario

(United States dollars, in millions except per share data) (unaudited)

Consolidated Statements of Cash Flow

 

     Six Months Ended  
     August 30,
2014
    August 31,
2013
 

Cash flows from operating activities

    

Net loss

   $ (184   $ (1,049

Adjustments to reconcile net loss to net cash provided by operating activities:

    

Amortization

     362        756   

Deferred income taxes

     35        (32

Income taxes payable

     —          (3

Stock-based compensation

     22        38   

Loss on disposal of property, plant and equipment

     119        29   

Debentures fair value adjustment

     (120     —     

Other

     13        10   

Net changes in working capital items:

    

Accounts receivable, net

     314        610   

Other receivables

     (10     49   

Inventories

     131        (338

Income taxes receivable

     249        135   

Other current assets

     199        (231

Accounts payable

     (257     66   

Accrued liabilities

     (311     154   

Deferred revenue

     (145     292   
  

 

 

   

 

 

 

Net cash provided by operating activities

     417        486   
  

 

 

   

 

 

 

Cash flows from investing activities

    

Acquisition of long-term investments

     (214     (220

Proceeds on sale or maturity of long-term investments

     14        180   

Acquisition of property, plant and equipment

     (48     (200

Proceeds on sale of property, plant and equipment

     348        5   

Acquisition of intangible assets

     (266     (603

Business acquisitions, net of cash acquired

     (9     (7

Acquisition of short-term investments

     (1,252     (917

Proceeds on sale or maturity of short-term investments

     1,024        930   
  

 

 

   

 

 

 

Net cash used in investing activities

     (403     (832
  

 

 

   

 

 

 

Cash flows from financing activities

    

Issuance of common shares

     4        —     

Tax deficiencies related to stock-based compensation

     —          (2

Purchase of treasury stock

     —          (16

Transfer to restricted cash

     (68     —     
  

 

 

   

 

 

 

Net cash used in financing activities

     (64     (18
  

 

 

   

 

 

 

Effect of foreign exchange loss on cash and cash equivalents

     (6     (4
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents during the period

     (56     (368

Cash and cash equivalents, beginning of period

     1,579        1,549   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 1,523      $ 1,181   
  

 

 

   

 

 

 

As at

   August 30,
2014
    May 31,
2014
 

Cash and cash equivalents

   $ 1,523      $ 1,710   

Short-term investments

     1,178        975   

Long-term investments

     329        333   

Restricted cash

     68        69   
  

 

 

   

 

 

 
   $ 3,098      $ 3,087   
  

 

 

   

 

 

 


Document 2


LOGO    BlackBerry Investor Relations Income Statement Summary  

 

GAAP Income Statement (Three Months Ended)                                                       
     Q1 FY14     Q2 FY14     Q3 FY14     Q4 FY14           FY14           Q1 FY15     Q2 FY15  

Hardware

     2,181        770        476        358             3,785             379        417   

Service

     794        724        632        548             2,698             519        424   

Software

     60        63        56        56             235             54        59   

Other

     36        16        29        14             95             14        16   
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Revenue

     3,071        1,573        1,193        976             6,813             966        916   
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Cost of Sales

                        

Cost of sales

     2,029        1,013        865        551             4,458             494        484   

Inventory write-down

     —          627        1,081        (93          1,615             21        7   

Supply commitment charges

     —          307        511        (35          783             —          —     
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Total cost of sales

     2,029        1,947        2,457        423             6,856             515        491   
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Gross profit

     1,042        (374     (1,264     553             (43          451        425   
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Operating expenses

                        

Research and development

     358        360        322        246             1,286             237        186   

Selling, marketing and administration

     673        527        548        355             2,103             400        195   

Amortization

     180        171        148        107             606             81        75   

Impairment of long-lived assets

     —          —          2,748        —               2,748             —          —     

Debentures fair value adjustment

     —          —          (5     382             377             (287     167   
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Total operating expenses

     1,211        1,058        3,761        1,090             7,120             431        623   
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Operating income (loss)

     (169     (1,432     (5,025     (537          (7,163          20        (198
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Investment income (loss), net

     5        (6     —          (20          (21          (26     (20
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes

     (164     (1,438     (5,025     (557          (7,184          (6     (218

Provision for (recovery of) income taxes

     (80     (473     (624     (134          (1,311          (29     (11
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Net income (loss)

     (84     (965     (4,401     (423          (5,873          23        (207
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Earnings (loss) per share

                        
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Basic earnings (loss) per share

   $ (0.16   $ (1.84   $ (8.37   $ (0.80        $ (11.18        $ 0.04      $ (0.39
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Diluted earnings (loss) per share

   $ (0.16   $ (1.84   $ (8.37   $ (0.80        $ (11.18        $ (0.37   $ (0.39
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Weighted-average number of common shares outstanding (000’s)

                        

Basic

     524,160        524,481        525,656        526,374             525,168             526,742        527,218   

Diluted

     524,160        524,481        525,656        526,374             525,168             658,228        527,218   
   
Non-GAAP Adjustments (Three Months Ended, Pre-Tax)                                                       
     Q1 FY14     Q2 FY14     Q3 FY14     Q4 FY14           FY14           Q1 FY15     Q2 FY15  

Debentures fair value adjustment

   $ —        $ —        $ —        $ 382           $ 382           $ (287   $ 167   

CORE program charges & strategic review

     26        72        266        148             512             226        33   

Inventory charge (recovery)

     —          934        1,592        (149          2,377             —          —     

LLA impairment charge

     —          —          2,748        —               2,748             —          —     
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Total Non-GAAP Adjustments (Three Months Ended, Pre-Tax)

   $ 26      $ 1,006      $ 4,606      $ 381           $ 6,019           $ (61   $ 200   
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 
   
Non-GAAP Adjustments (Three Months Ended, After-
Tax)
                                                      
     Q1 FY14     Q2 FY14     Q3 FY14     Q4 FY14           FY14           Q1 FY15     Q2 FY15  

Debentures fair value adjustment

   $ —        $ —        $ —        $ 382           $ 382           $ (287   $ 167   

CORE program charges & strategic review

     17        51        225        105             398             204        29   

Inventory charge (recovery)

     —          666        1,347        (106          1,907             —          —     

LLA impairment charge

     —          —          2,475        —               2,475             —          —     
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Total Non-GAAP Adjustments (Three Months Ended, After-Tax)

   $ 17      $ 717      $ 4,047      $ 381           $ 5,162           $ (83   $ 196   
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 
Reconciliation from GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) and Non-GAAP Loss per Share        
     Q1 FY14     Q2 FY14     Q3 FY14     Q4 FY14           FY14           Q1 FY15     Q2 FY15  

GAAP Net Income (Loss)

   $ (84   $ (965   $ (4,401   $ (423        $ (5,873        $ 23      $ (207

Total Non-GAAP adjustments (three months ended, after-tax)

     17        717        4,047        381             5,162             (83     196   
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 

Non-GAAP Net Income (Loss)

     (67     (248     (354     (42          (711          (60     (11
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 
   

Non-GAAP Loss per Share

   $ (0.13   $ (0.47   $ (0.67   $ (0.08        $ (1.35        $ (0.11   $ (0.02
  

 

 

   

 

 

   

 

 

   

 

 

        

 

 

        

 

 

   

 

 

 
   

Shares outstanding for Non-GAAP Loss per Share reconciliation

     524,160        524,481        525,656        526,374             525,168             526,742        527,218   

 

 

Adjusted loss before income taxes, adjusted net loss and adjusted loss per share do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company’s operating results relative to its operating results in prior periods and improves the comparability of the information presented. This non-GAAP information should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. You are encouraged to review the Company’s filings on SEDAR and EDGAR. The Company makes no commitment to update the information above subsequently.


LOGO    BlackBerry Investor Relations Pre-Tax CORE Charge Details  

 

     Q1 FY14      Q2 FY14      Q3 FY14      Q4 FY14          FY14          Q1 FY15      Q2 FY15  

Total cost of sales

   $ —         $ 10       $ 76       $ 17          $ 103          $ 12       $ 10   

Research and development

     10         8         37         21            76            41         19   

Selling, marketing and administration

     16         54         153         110            333            173         4   
  

 

 

    

 

 

    

 

 

    

 

 

       

 

 

       

 

 

    

 

 

 

Total CORE charges

   $ 26       $ 72       $ 266       $ 148          $ 512          $ 226       $ 33   
  

 

 

    

 

 

    

 

 

    

 

 

       

 

 

       

 

 

    

 

 

 

 

 

The information above is supplied to provide meaningful supplemental information regarding the Company’s operating results because such information excludes amounts that are not necessarily related to its operating results. The Company believes that the presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company’s operating results relative to its operating results in prior periods and improves the comparability of the information presented. This non-GAAP information should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. You are encouraged to review the Company’s filings on SEDAR and EDGAR. The Company makes no commitment to update the information above subsequently.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: September 26, 2014

 

BlackBerry Limited
(Registrant)
By:  

/s/ James Yersh

  James Yersh
  Chief Financial Officer