Canadian handset manufacturer BlackBerry Limited BBRY, reported fourth-quarter fiscal 2015 financial results wherein the bottom line outpaced the Zacks Consensus Estimate but the top line missed.
Results in Detail
GAAP loss from continuing operations in the fourth quarter of fiscal 2015 came in at $28 million or 5 cents per share compared with $423 million or loss of 80 cents per share in the year-ago quarter. However, adjusted net income per share of 4 cents compared favorably with the Zacks Consensus Estimate of a loss of 3 cents per share.
Total revenue in the reported quarter stood at $660 million against $976 million in the year-ago period. The top line also lagged the Zacks Consensus Estimate of $833 million. Segment-wise, Hardware revenues contributed approximately 42%, Services revenues 47% and the remaining 10% came from Software and other sources.
Geographically, North America contributed 31% of the total revenue while Europe, the Middle East and Africa accounted for 43% of the figure. Similarly, Latin America and Asia Pacific generated 9% and 17% of the total revenue in the reported quarter, respectively.
In the fourth quarter, BlackBerry sold 1.6 million smartphones to the end customers. Quarterly operating loss stood at $106 million compared with $537 million in the year-ago quarter.
At the end of fiscal 2015, BlackBerry generated $813 million of cash from operations against $159 million cash consumed in the same period last year. Free cash flow, in the reported quarter, stood at $726 million compared with a negative free cash flow of $442 million in the year-ago quarter.
Cash and marketable securities were $2,891 million as against $2,529 million at the end of fiscal 2014. Long-term debt during the quarter totaled $1,707 million versus $1,627 million in the prior-year quarter.
BlackBerry currently has a Zacks Rank #3 (Hold).
Outlook
BlackBerry expects to generate positive free cash flow and non-GAAP earnings in 2016.
Our Take
Ever since Apple Inc.’s AAPL iPhone hit the market, BlackBerry and Nokia Corp. NOK have been facing intense competitive pressure. The situation worsened with the launch of Google Inc.’s GOOG Android software, which was an instant hit.
Lately, BlackBerry has been exploring several alternate business options which should help the company offset escalating losses in its smartphone business. BlackBerry’s BES12 platform is increasingly gaining traction and the company’s latest deal with Sprint Corp. also testifies its growing popularity. As per the deal, BlackBerry will deliver secure management solutions to Sprint’s devices from other mobile platforms.
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