An employee owns a new BlackBerry Ltd. Leap smartphone
Pau Barrena / Bloomberg
The stock traded lower late Tuesday after the company posted disappointing results for the fourth fiscal quarter ended February 28.
For the quarter, the former wireless company, now focused on software for security and the automotive market, had revenue of $ 215 million on a non-GAAP basis – or $ 210 million on a generally accepted accounting basis. The GAAP number was down 26% year over year and was below the Street consensus forecast of $ 245 million.
In announcing the results, BlackBerry (ticker: BB) announced that it had entered negotiations with an unidentified “North American company” during the quarter to purchase part of its patent portfolio for mobile devices, messaging and wireless networks. In light of these negotiations, the company announced that it had limited patent monetization activity during the quarter. BlackBerry said if it hadn’t, license revenues would have been higher.
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The company posted non-GAAP earnings of 3 cents per share for the quarter, based on Street estimates. On a GAAP basis, the company lost 56 cents per share, mainly due to a non-cash accounting adjustment of its convertible bonds of around 46 cents per share.
For the full year, BlackBerry had revenue of $ 919 million on a non-GAAP basis or $ 893 million on a GAAP basis.
“It’s been an exceptional year for navigation, but we look forward to the continued recovery of QNX [a reference to the company’s operating system software for the automotive market]Despite new challenges due to global chip scarcity, “John Chen, CEO of BlackBerry, said in a statement. “QNX has now achieved design wins with 23 of the world’s top 25 electric vehicle original equipment manufacturers (OEMs) and remains on track to return to normal sales by mid-fiscal 2022.
In a conference call with analysts, the company announced that it expects software and services revenue to range between $ 675 million and $ 715 million, an increase of between 9 and 15 percent. This does not include royalty revenue in light of the company’s discussions about the sale of a substantial portion of its patent portfolio.
BlackBerry stock in late trading was down 4.7% to $ 8.90.
Write to Eric J. Savitz at [email protected]