BlackBerry(US:BB)2025-06-25 20:52Revenue and Income - Revenue for the three months ended May 31, 2025, was $121.7 million, a slight decrease of 1.4% compared to $123.4 million for the same period in 2024[21] - Operating income for the quarter was $2.0 million, a significant improvement from an operating loss of $12.9 million in the same quarter last year[21] - Net income for the three months ended May 31, 2025, was $1.9 million, compared to a net loss of $41.4 million in the same period of 2024[21] - The company reported a comprehensive income of $8.3 million for the quarter, compared to a comprehensive loss of $41.7 million in the prior year[23] - For the three months ended May 31, 2025, the net income from continuing operations was $1.9 million, compared to a net loss of $16.5 million for the same period in 2024[94] - The company achieved net income of $1.9 million in Q1 Fiscal 2026, a significant improvement of $43.3 million from a net loss of $41.4 million in Q1 Fiscal 2025[166] Cash and Assets - Cash and cash equivalents increased to $276.0 million as of May 31, 2025, up from $266.7 million at the end of February 2025[16] - Total assets decreased to $1,210.4 million as of May 31, 2025, down from $1,295.6 million as of February 28, 2025[16] - The company’s total shareholders' equity increased to $725.1 million as of May 31, 2025, compared to $719.9 million at the end of February 2025[18] - The company had cash, cash equivalents, and investments totaling $381.9 million as of May 31, 2025, including common shares of Arctic Wolf valued at $24.6 million[137] - The company had restricted cash and cash equivalents of $16.5 million as of May 31, 2025, up from $13.6 million as of February 28, 2025[62] Expenses and Costs - Research and development expenses were $25.0 million, down from $30.6 million in the same quarter last year, indicating a focus on cost management[21] - Operating expenses decreased by 14.6% to $88.3 million compared to $102.9 million in Q1 Fiscal 2025[166] - Total restructuring charges incurred for the three months ended May 31, 2025, were $2.9 million, down from $7.3 million for the same period in 2024[80] - The amortization expense related to intangible assets for the three months ended May 31, 2025, was $4.2 million, significantly lower than $11.0 million for the same period in 2024[72] - Sales and marketing expenses increased by $2.6 million to $13.3 million from $10.7 million year-over-year[213] Segment Performance - QNX segment revenue increased to $57.5 million in Q1 2025 from $53.2 million in Q1 2024, representing a growth of 4.5%[115] - Secure Communications segment revenue was $59.5 million for the three months ended May 31, 2025, compared to $64.2 million in the same period last year, reflecting a decline of 7.3%[115] - Licensing segment revenue decreased to $4.7 million in Q1 2025 from $6.0 million in Q1 2024, a decline of 21.7%[115] - Total segment revenue for the company was $121.7 million, down 1.7% from $123.4 million in the previous year[213] - Segment adjusted EBITDA for Q1 Fiscal 2026 was $26.1 million, up from $22.9 million in Q1 Fiscal 2025, indicating a 3.2 million increase[169] Financial Outlook and Projections - The Company expects total BlackBerry revenue to be in the range of $508 million to $538 million for fiscal 2026, an increase from previous expectations[205] - The Company expects Secure Communications revenue to be in the range of $234 million to $244 million for fiscal 2026, reflecting stronger than expected performance[200] - The company expects to recognize revenue from unsatisfied performance obligations over the next 12 months, although specific amounts are not disclosed[124] Accounting and Compliance - The company plans to adopt new accounting standards related to income tax disclosures effective after December 15, 2024, and is currently evaluating the impact on its disclosures[36] - The company is in the process of evaluating new accounting standards related to expense disaggregation disclosures, effective after December 15, 2026[37] - The company has not adopted any new accounting standards during fiscal 2026 to date[34] Shareholder Actions - The company repurchased 2.6 million common shares at a cost of $10 million during the three months ended May 31, 2025[91] - A share buyback program was announced for the repurchase of up to 27,855,153 common shares[164] Other Notable Points - The company recognized a gain on the sale of its Cylance endpoint security assets amounting to $10.4 million before taxes in Q4 fiscal 2025[39] - The company is owed a deferred cash payment of approximately $38.6 million from Arctic Wolf as part of the sale of its Cylance endpoint security assets[135] - The company believes its financial resources will be sufficient to meet current commitments and future operating expenditures based on current projections[138]