Financial Data and Key Metrics Changes - Total company revenue for Q3 was $141.8 million, exceeding the high end of guidance [5][16] - Adjusted EBITDA was $28.7 million, representing a 20% margin, with GAAP net income improving to $13.7 million, up $24.2 million year over year [5][17] - Operating cash flow was $17.9 million, up over 200% year over year, reflecting strong execution and disciplined cost management [5][19] Business Line Data and Key Metrics Changes - QNX achieved record quarterly revenue of $68.7 million, a 10% year-over-year growth, driven by royalties and professional services [6][17] - Secure communications revenue was $67 million, exceeding guidance, with annual recurring revenue increasing to $216 million [10][11] - Licensing revenue was $6.1 million, in line with expectations, and adjusted EBITDA for the division was $5.3 million [14][18] Market Data and Key Metrics Changes - QNX is now powering over 275 million vehicles on the road, a 20 million increase year over year, indicating significant market presence [9] - The secure communications division demonstrated a dollar-based net retention rate of 92%, indicating strong customer retention [11] Company Strategy and Development Direction - The company is focusing on expanding its QNX business into automotive and general embedded markets, with strategic investments in go-to-market activities and partnerships [6][30] - The introduction of the QNX General Embedded Development Platform (GEDP) aims to accelerate time to market for developers, with positive feedback from customers [10] - The company is also targeting higher pricing per vehicle through a vehicle software platform co-developed with Vector, indicating a shift towards higher-value offerings [8][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of QNX, expecting revenue for Q4 to be in the range of $71-$77 million, setting another record [21][22] - The secure communications division is expected to see increased revenue in Q4, with guidance raised for the full fiscal year [22][23] - Management highlighted the importance of mission-critical software solutions during the U.S. government shutdown, indicating resilience in the business model [49] Other Important Information - The company repurchased $5 million worth of shares, totaling 8.8 million shares bought back this fiscal year, to offset potential dilution [20] - The company expects to generate over $80 million in cash in Q4, further strengthening its balance sheet [25] Q&A Session Summary Question: Investment needs in GEM opportunity for fiscal 2027 - Management indicated that investments will focus on go-to-market activities and partnerships to gain critical mass in key end markets [30] Question: Factors leading to luxury China EV win - Cost savings, weight savings, and superior software functionality were highlighted as key factors in winning the deal [32] Question: Progress towards vehicle platform award - Management noted significant focus on integrating QNX and middleware, with more updates expected at CES [34] Question: Trends in QNX growth rates - Management expressed optimism about double-digit growth and strong backlog conversion into revenue [40][42] Question: Future of Secusmart business - Management acknowledged a strong pipeline within Secure Communications and expressed confidence in converting it into solid performance [44][45] Question: Government shutdown impact - Management noted that mission-critical software solutions were less impacted by the shutdown than initially feared [49] Question: Robotics technology demand - Management indicated that QNX technology is well-suited for high-performance robotics applications, with more details to be shared in the future [51]

Core Insights - Malaysia has expanded the deployment of BlackBerry's secure communication solutions, AtHoc and SecuSUITE, to enhance security during the ASEAN Summits in 2025 [1][5] - The use of these technologies aims to protect sensitive communications and improve coordination among various government agencies involved in the Summits [3][4] Company Update - BlackBerry AtHoc is utilized for secure emergency notifications and incident response, facilitating real-time coordination across agencies [4] - BlackBerry SecuSUITE is a military-grade secure voice and messaging solution that safeguards sensitive conversations from interception [4][5] - The deployment of these solutions is part of Malaysia's efforts to set a new standard for sovereign secure communications during high-profile events [5][8] Operational Details - During the 46th ASEAN Summit, 100 liaison officers used BlackBerry AtHoc for secure, location-based alerts and coordination [6] - For the upcoming 47th Summit, the number of liaison officers will increase to 150, all equipped with AtHoc and SecuSUITE on mobile devices [6][7] - The technology used is comparable to that employed during the G7 Summits, highlighting its effectiveness in ensuring operational resilience and inter-agency collaboration [8]

Core Insights - Critical Infrastructure Technologies Ltd. (CiTech) has signed two three-way Confidentiality Agreements (NDAs) with global partners to enhance secure communications for the Nexus 20 platform, as requested by the Ukrainian Ministry of Defence [1][2]. Group 1: Agreements and Collaborations - The NDAs involve partnerships with Babcock Land Defence Limited, Nokia Solutions and Networks Oy, and Ericsson Limited, focusing on the design and integration of 4G/5G telecommunications systems into the Nexus 20 [2]. - Nokia and Ericsson have been chosen as preferred suppliers for advanced telecommunications hardware, which includes the delivery of 50 Nexus 20 platforms [2]. Group 2: Strategic Importance - The collaboration aims to ensure that industry leaders can work in a secure environment to deliver advanced communications systems that meet the operational needs of the Ukrainian Ministry of Defence [3]. - The Nexus 20 program highlights the critical need for resilient, secure, and high-capacity communications in modern defense operations, moving closer to deployment with the execution of these NDAs [3]. Group 3: Company Overview - CiTech is focused on developing autonomous, high-capacity, rapidly deployable technology for sectors such as mining, defense, border security, and emergency services [5]. - The company's first product, the Nexus 16, aims to provide essential mobile telecommunications, addressing limitations of current communication solutions [5].

Core Viewpoint - L3Harris Technologies Inc. is demonstrating stability and growth in the defense sector, with a focus on long-term contracts and diversified defense capabilities [2][4][23] Financial Performance - As of early June, L3Harris shares were trading at approximately $242, reflecting a modest year-over-year decline of around 3.2%, while its market cap stands at roughly $44.87 billion [3] - The company reported $5.52 billion in revenue for Q1 2025 and raised its cost-saving target to $1.2 billion for the year [12] Valuation Metrics - L3Harris has a P/E ratio of 28.71, which is positioned between Lockheed Martin at 20.60 and RTX Corp. at 40.78, indicating it is neither the cheapest nor the most expensive in the sector [5] - The dividend yield is 1.98%, slightly ahead of RTX but behind Lockheed Martin's 2.76% [6] Growth Drivers - L3Harris is building momentum across various defense segments, including space systems, tactical communications, and classified defense work, which are increasingly prioritized by the market [8][11][16] - Recent contracts include a $90 million deal with the U.S. Space Force and nearly $300 million from the Army for mission-critical communications gear, reinforcing its role in next-gen defense infrastructure [14][15] Strategic Positioning - The company's focus aligns with U.S. and NATO priorities around modernization and readiness, positioning it well for future defense spending [17][18] - L3Harris is diversifying its portfolio across critical areas such as space systems, secure communications, and AI-integrated battlefield technologies, reducing reliance on any single program [16][23] Market Perception - Despite its strong fundamentals and growth potential, L3Harris is currently trading at a discount compared to peers, suggesting that the market may be mispricing its value [4][23] - The company’s steady contract flow and focus on core military needs provide a clearer path forward in a defense-heavy environment [15]