BlackBerry beats by $0.46, misses on revs; reports 2.3 mln Blackberry 7 devices sold; co targeting break even cash flow results by the end of FY15
Reports Q4 (Feb) loss of $0.08 per share, excluding non-recurring items, $0.46 better than the Capital IQ Consensus Estimate of ($0.54); revenues fell 63.6% year/year to $976 mln vs the $1.13 bln consensus.
The revenue breakdown for the quarter was ~37% for hardware, 56% for services and 7% for software and other revenue. During the fourth quarter, the Company recognized hardware revenue on ~1.3 mln BlackBerry smartphones compared to ~1.9 mln BlackBerry smartphones in the previous quarter. During the fourth quarter, ~3.4 mln BlackBerry smartphones were sold through to end customers, which included shipments made and recognized prior to the fourth quarter and which reduced the Company's inventory in channel. Of the BlackBerry smartphones sold through to end customers in the fourth quarter, ~2.3 mln were BlackBerry 7 devices.
The company reported adjusted Q4 gross margin of 43%, up from 34% in the prior quarter.
Co reported channel inventory down 30% from the prior quarter.
Cash Position: The total of cash, cash equivalents, short-term and long-term investments was ~$2.7 bln as of March 1, 2014, compared to $3.2 bln at the end of the previous quarter. Cash flow used in operations in the fourth quarter was ~$553 mln. Cash flows provided by financing activities in the fourth quarter were ~$251 mln, which includes the additional issuance of $250 mln of convertible debentures.
Outlook: The Company anticipates maintaining its strong cash position and continuing to look for opportunities to streamline operations. The Company is targeting break even cash flow results by the end of fiscal 2015.