BlackBerry Q2 Earnings Call Recap

BB Chen

Thanks to Gnomesane and Web99 for catching the key points below:

– “A very solid quarter” according to CEO John Chen
– Starting to make investments in growth, including hardware
– Hardware turns profit for first time in five quarters
– Z3 is available in more countries now and demand is now outpacing supply
– More than 200,000 orders for the Passport by the end of the day (sold out in 6 hours on shopblackberry and 10 hours on Amazon). Chen says right now the device is profitable.
– The engineering team is working on the classic and the roadmap beyond the classic
– EZ Pass considered a success, they may end EZ Pass program earlier
– Enterprise and EZ Pass now has 3500 customers (up 900 from previous quarter), 2.2 million new licenses
– 25% of licenses for BES traded in from competitors
– Chen introduced Blend, Blend is free on iTunes and Google Play
– Identity management software releasing later
– Planned expansion or release of BBM Protected, BBM Meetings, BBM Money
– Strategic acquisitions: Secusmart, Movirtu
– Monetization through BlackBerry Technology solutions using patents… sell and license
– BES 12 launch November 13
– Software earnings $250M, expected to double to 500M
– 3.1 billion cash balance not expected to fall below 2.5 billion

From Q&A
– No more production runs of BlackBerry Bold 9900 expected
– Chen discussing winning people back by instilling confidence
– Chen thinks he can monetize value-added services in BB10 and BES10 to make up for losing revenue from legacy services
– Restructuring is over, BlackBerry to focus on growth. BTS, IoT, QNX – QNX to be a major part of IoT
– North America revenues increase – mostly devices
– Believes BBM could bring in $100 million in revenue
– Sales BB10 : 1.4 million and BBOS 700,000
–  Growth in QNX
– On track for profitability by next fiscal year
– Investment in hardware for devices beyond the Classic

You can find a full play-by-play on the Financial Post

Details on the fiscal results are on here on UTBBlogs

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