Welcome!

.NET Authors: Pat Romanski, Srinivasan Sundara Rajan, ChandraShekar Dattatreya, Jayaram Krishnaswamy, Jim Kaskade

News Feed Item

BlackBerry Reports Fourth Quarter and Year-End Results for Fiscal 2014

BlackBerry Reports Fiscal Fourth Quarter Adjusted Loss Per Share of $0.08 vs. $0.67 in Previous Quarter

WATERLOO, ONTARIO -- (Marketwired) -- 03/28/14 -- BlackBerry Limited (NASDAQ: BBRY)(TSX: BB), a global leader in mobile communications, today reported financial results for the three months and fiscal year ended March 1, 2014 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Q4 Highlights:


--  Cash and investments balance of $2.7B at the end of the fiscal fourth
    quarter
--  Adjusted Q4 gross margin of 43%, up from 34% in the prior quarter
--  Channel inventory down 30% from the prior quarter
--  Reduced adjusted operating expenses by approximately 51% from Q1FY14
--  Revenue for the fourth quarter of approximately $976 million

Q4 Results

Revenue for the fourth quarter of fiscal 2014 was approximately $976 million, down $217 million or 18% from approximately $1.2 billion in the previous quarter and down 64% from $2.7 billion in the same quarter of fiscal 2013. The revenue breakdown for the quarter was approximately 37% for hardware, 56% for services and 7% for software and other revenue. During the fourth quarter, the Company recognized hardware revenue on approximately 1.3 million BlackBerry smartphones compared to approximately 1.9 million BlackBerry smartphones in the previous quarter. During the fourth quarter, approximately 3.4 million 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, approximately 2.3 million were BlackBerry 7 devices.

GAAP loss from continuing operations for the fourth quarter was $423 million, or $0.80 per share diluted. The loss includes a non-cash charge associated with the change in the fair value of the Debentures of approximately $382 million (the "Q4 Fiscal 2014 Debentures Fair Value Adjustment"), a pre-tax recovery of previously recorded inventory charges of approximately $149 million (the "Q4 Fiscal 2014 Inventory Recovery") and pre-tax restructuring charges of approximately $148 million related to the Cost Optimization and Resource Efficiency ("CORE") program. This compares with a GAAP loss from continuing operations of $4.4 billion, or $8.37 per share diluted in the prior quarter, and GAAP income from continuing operations of $94 million, or $0.18 per share diluted, in the same quarter last year.

Adjusted loss from continuing operations for the fourth quarter was $42 million, or $0.08 per share diluted. Adjusted loss from continuing operations and adjusted diluted loss per share exclude the impact of the non-cash Q4 Fiscal 2014 Debentures Fair Value Adjustment of approximately $382 million ($382 million after tax), the Q4 Fiscal 2014 Inventory Recovery of approximately $149 million ($106 million after tax), and pre-tax restructuring charges of approximately $148 million ($105 million after tax) related to the CORE program incurred in the fourth quarter of fiscal 2014. These impacts on GAAP loss from continuing operations and diluted loss per share from continuing operations are summarized in the table below.

The total of cash, cash equivalents, short-term and long-term investments was approximately $2.7 billion as of March 1, 2014, compared to $3.2 billion at the end of the previous quarter. Cash flow used in operations in the fourth quarter was approximately $553 million. Cash flows provided by financing activities in the fourth quarter were approximately $251 million, which includes the additional issuance of $250 million of convertible debentures. Cash flows used in investing activities included intangible asset additions of approximately $243 million. Purchase obligations and other commitments amounted to approximately $1.9 billion as at March 1, 2014, with purchase orders with contract manufacturers representing approximately $586 million of the total.

"I am very pleased with our progress and execution in fiscal Q4 against the strategy we laid out three months ago. We have significantly streamlined operations, allowing us to reach our expense reduction target one quarter ahead of schedule," said John Chen, Executive Chairman and Chief Executive Officer of BlackBerry. "BlackBerry is on sounder financial footing today with a path to returning to growth and profitability."

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.

Reconciliation of GAAP gross margin, gross margin percentage, loss from continuing operations before income taxes, loss from continuing operations and diluted loss per share from continuing operations to adjusted gross margin, adjusted gross margin percentage, adjusted loss from continuing operations before income taxes, adjusted loss from continuing operations and adjusted diluted loss per share from continuing operations:


(United States dollars, in millions except per share data)


                                          Loss from
                                         continuing                  Diluted
                     Gross       Gross   operations                 loss per
                Margin(1)  Margin %(1)       before    Loss from  share from
                   (before     (before       income   Continuing  continuing
                    taxes)      taxes)        taxes   Operations  operations
              --------------------------------------------------------------
As reported    $      553         57%  $      (557) $      (423) $    (0.80)
Adjustments:
CORE charges
 (2)                   17          2%          148          105        0.20
Q4 Fiscal 2014
 Debenture
 Fair Value
 Adjustment
 (3)                                           382          382        0.73
Q4 Fiscal 2014
 Inventory
 Recovery (4)        (149)       (15)%        (149)        (106)      (0.20)
              --------------------------------------------------------------
Adjusted       $      421         43%  $      (176) $       (42) $    (0.08)
              --------------------------------------------------------------
              --------------------------------------------------------------

Note: Adjusted gross margin, adjusted gross margin percentage, adjusted loss from continuing operations before tax, adjusted loss from continuing operations and adjusted diluted loss per share from continuing operations do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company's operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of the Company's GAAP results.


(1)   During the fourth quarter of fiscal 2014, the Company reported GAAP
      gross margin of $553 million or 57% of revenue. Excluding the impact
      of the CORE charges included in cost of sales and the Q4 Fiscal 2014
      Inventory Recovery, the adjusted gross margin was $421 million, or
      43%.
(2)   As part of the Company's ongoing effort to streamline its operations
      and increase efficiency, the Company commenced the CORE program in
      March 2012. During the fourth quarter of fiscal 2014, the Company
      incurred charges related to the CORE program of approximately $148
      million pre-tax, or $105 million after tax. Substantially all of the
      pre-tax charges are related to one-time employee termination benefits,
      facilities and manufacturing costs. During the fourth quarter of
      fiscal 2014, charges of approximately $17 million were included in
      cost of sales, charges of approximately $21 million were included in
      research and development and charges of approximately $110 million
      were included in selling, marketing, and administration expenses.
(3)   During the fourth quarter of fiscal 2014, the Company recorded a non-
      cash charge associated with the change in the fair value of the
      Debentures of approximately $382 million. This adjustment was
      presented on a separate line in the Statements of Operations.
(4)   During the fourth quarter of fiscal 2014, the Company recorded a
      recovery of previous charges against inventory and supply commitments
      of approximately $149 million, or $106 million after tax, to reflect
      increased sell through rates, relative to the estimates and
      assumptions previously considered, resulting from discounted pricing
      and revised orders on hand for devices and components of BlackBerry 10
      products.

Fiscal 2014 Results

Revenue from continuing operations for the fiscal year ended March 1, 2014 was $6.8 billion, down 38% from $11.1 billion in fiscal 2013. The Company's GAAP net loss from continuing operations for fiscal 2014 was $5.9 billion, or $11.18 per share diluted, compared with GAAP net loss from continuing operations of $628 million, or $1.20 per share diluted in fiscal 2013. Adjusted net loss from continuing operations for fiscal 2014 was $711 million, or $1.35 per share diluted. Adjusted net loss from continuing operations and adjusted diluted loss per share for fiscal 2014 exclude the pre-tax impacts of an LLA impairment charge of $2.7 billion ($2.5 billion after tax), the Q4 Fiscal 2014 Inventory Recovery of $1.6 billion ($1.3 billion after tax), the Z10 inventory charge of $934 million ($666 million after tax), the Q4 Fiscal 2014 Debentures Fair Value Adjustment of $382 million ($382 million after tax), charges of $512 million ($398 million after tax) related to the Company's CORE program and strategic review process and the Q4 Fiscal 2014 Inventory Recovery of $149 million ($106 million after tax). These charges and their related impacts on GAAP net loss from continuing operations and diluted loss per share from continuing operations are summarized in the table below.

Reconciliation of GAAP gross margin, gross margin percentage, loss from continuing operations before income taxes, loss from continuing operations and diluted loss per share from continuing operations to adjusted gross margin, adjusted gross margin percentage, adjusted loss from continuing operations before income taxes, adjusted loss from continuing operations and adjusted diluted loss per share from continuing operations:


(United States dollars, in millions except per share data)

                          For the fiscal year ended March 1, 2014
              --------------------------------------------------------------
                                          Loss from
                                         continuing                  Diluted
                     Gross       Gross   operations                 loss per
                Margin(1)  Margin %(1)       before    Loss from  share from
                   (before     (before       income   Continuing  continuing
                    taxes)      taxes)        taxes   Operations  operations
              --------------------------------------------------------------
As reported    $      (43)        (1)% $    (7,184) $    (5,873) $   (11.18)
Adjustments:
CORE charges          103
 (1)                               2%          512          398        0.76
Q4 Fiscal 2014
 Debenture
 Fair Value
 Adjustment
 (2)                                           382          382        0.73
Q4 Fiscal 2014
 Inventory
 Recovery (3)        (149)        (2)%        (149)        (106)      (0.20)
LLA Impairment
 Charge (4)                                  2,748        2,475        4.71
Q3 Fiscal 2014
 Inventory
 Charge (5)         1,592         23%        1,592        1,347        2.56
Z10 Inventory
 Charge (6)           934         14%          934          666        1.27
              --------------------------------------------------------------
Adjusted       $    2,437         36%  $    (1,165) $      (711) $    (1.35)
              --------------------------------------------------------------
              --------------------------------------------------------------

Note: Adjusted gross margin, adjusted gross margin percentage, adjusted loss from continuing operations before tax, adjusted loss from continuing operations and adjusted diluted loss per share from continuing operations do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company's operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of the Company's GAAP results.


(1)   As part of the Company's ongoing effort to streamline its operations
      and increase efficiency, the Company commenced the CORE program in
      March 2012. Further, the Company announced the formation of a special
      committee to conduct an organizational strategic review on August 12,
      2013. During fiscal 2014, the Company incurred approximately $512
      million in total pre-tax charges related to the CORE program and
      strategic review process. Substantially all of the pre-tax charges are
      related to one-time employee termination benefits, facilities and
      manufacturing costs related to the CORE program and legal and
      financial advisory costs related to the strategic review process.
      During fiscal 2014, pre-tax charges of approximately $103 million were
      included in cost of sales, charges of approximately $76 million were
      included in research and development and charges of approximately $333
      million were included in selling, marketing, and administration
      expenses.
(2)   During the fourth quarter of fiscal 2014, the Company recorded a non-
      cash charge associated with the change in the fair value of the
      Debentures of approximately $382 million. This adjustment was
      presented on a separate line in the Statements of Operations.
(3)   During the fourth quarter of fiscal 2014, the Company recorded a
      recovery of previous charges against inventory and supply commitments
      of approximately $149 million, or $106 million after tax, to reflect
      increased sell through rates, relative to the estimates and
      assumptions previously considered, resulting from discounted pricing
      and revised orders on hand for devices and components of BlackBerry 10
      products.
(4)   During the third quarter of fiscal 2014 the Company performed a long-
      lived asset impairment test and based on the results of that test, the
      Company recorded a non-cash LLA Impairment Charge of approximately
      $2.7 billion pre-tax, or $2.5 billion after tax.
(5)   During the third quarter of fiscal 2014, the Company recorded a
      primarily non-cash, pre-tax charge against inventory and supply
      commitments of approximately $1.6 billion, or $1.3 billion after tax,
      which was primarily attributable to BlackBerry 10 devices.
(6)   During the second quarter of fiscal 2014, the Company recorded a
      primarily non-cash, pre-tax charge against inventory and supply
      commitments of approximately $934 million, or $666 million after tax,
      which was primarily attributable to BlackBerry Z10 devices.

Supplementary Geographic Revenue Breakdown


                             Blackberry Limited
                    (United States dollars, in millions)
                              Revenue by Region


                                     For the quarter ended
                   ---------------------------------------------------------
                      March 1, 2014    November 30, 2013   August 31, 2013
                   ---------------------------------------------------------
North America       $     297    30.4% $     340    28.5% $     414    26.3%
Europe, Middle East
 and Africa               412    42.2%       549    46.0%       686    43.6%
Latin America             127    13.0%       135    11.3%       196    12.5%
Asia Pacific              140    14.4%       169    14.2%       277    17.6%
                   ---------------------------------------------------------
Total               $     976   100.0% $   1,193   100.0% $   1,573   100.0%
                   ---------------------------------------------------------
                   ---------------------------------------------------------

                           For the quarter ended
                   --------------------------------------
                      June 1, 2013       March 2, 2013
                   --------------------------------------
North America       $     761    24.8% $     587    21.9%
Europe, Middle East
 and Africa             1,343    43.7%     1,227    45.8%
Latin America             449    14.6%       479    17.9%
Asia Pacific              518    16.9%       385    14.4%
                   --------------------------------------
Total               $   3,071   100.0% $   2,678   100.0%
                   --------------------------------------
                   --------------------------------------

Conference Call and Webcast

A conference call and live webcast will be held beginning at 8 am ET, which can be accessed by dialing 1-800-814-4859 or through your BlackBerry® 10 smartphone, personal computer or BlackBerry® PlayBook™ tablet at http://ca.blackberry.com/company/investors/events.html. A replay of the conference call will also be available at approximately 10 am by dialing (+1)416-640-1917 and entering pass code 4612572# or by clicking the link above on your BlackBerry® 10 smartphone, personal computer or BlackBerry® PlayBook™ tablet. This replay will be available until midnight ET April 11, 2014.

About BlackBerry

A global leader in mobile communication, BlackBerry® revolutionized the mobile industry when it was introduced in 1999. Today, BlackBerry aims to inspire the success of our millions of customers around the world by continuously pushing the boundaries of mobile experiences. Founded in 1984 and based in Waterloo, Ontario, BlackBerry operates offices in North America, Europe, Asia Pacific and Latin America. BlackBerry is listed on the NASDAQ Stock Market (NASDAQ: BBRY) and the Toronto Stock Exchange (TSX: BB). For more information, visit www.blackberry.com.

This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements regarding: BlackBerry's plans, strategies and objectives, and the anticipated opportunities and challenges in fiscal 2015; BlackBerry's expectations with respect to the sufficiency of its financial resources, including the anticipated receipt of a significant income tax refund in the first half of fiscal 2015; BlackBerry's expectations regarding targeting break even cash flow results by the end of fiscal 2015; BlackBerry's expectations regarding new product initiatives and their timing, including BlackBerry Enterprise Service 10, BES 12, BlackBerry 10 smartphones and services related to BlackBerry Messenger ("BBM"), QNX software products and the QNX cloud-based machine to machine solution; BlackBerry's plans and expectations regarding its existing and new service offerings, assumptions regarding its service revenue model, and the anticipated levels of decline in service revenue in the first quarter of fiscal 2015; anticipated demand for, and BlackBerry's plans and expectations relating to its BlackBerry 7 and 10 smartphones, including programs to drive sell-through of these smartphones; BlackBerry's on-going efforts to streamline its operations and its expectations relating to the benefits of its CORE program and similar strategies; BlackBerry's plans to continue implementation of a workforce reduction of approximately 4,500 positions; BlackBerry' plans and expectations regarding marketing and promotional programs; BlackBerry's estimates of purchase obligations and other contractual commitments; and assumptions and expectations described in BlackBerry's critical accounting estimates and accounting policies. The terms and phrases "expect", "anticipate", "estimate", "may", "will", "should", "intend", "believe", "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances, including, but not limited, to BlackBerry's expectations regarding its business, strategy, opportunities and prospects, including its ability to implement meaningful changes to address its business challenges, the launch of products based on the BlackBerry 10 platform, general economic conditions, product pricing levels and competitive intensity, supply constraints, and BlackBerry's expectations regarding the cash flow generation of its business and the sufficiency of its financial resources.

Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks related to BlackBerry's ability to implement and realize the benefits of its strategic initiatives, including a return to its core strength of enterprise and security, changes to its Devices Business, including the new partnership with Foxconn, and the planned transition to an operating unit organizational structure consisting of the Devices Business, Enterprise Services, QNX Embedded Business and Messaging; BlackBerry's ability to maintain existing enterprise customer relationships and to transition such customers to the BES 10 platform and deploy BlackBerry 10 smartphones, and the risk that current BES 10 test installations may not convert to commercial installations; BlackBerry's ability to enhance its current products and services, or develop new products and services in a timely manner or at competitive prices, including risks related to new product introductions; the risk that uncertainty relating to BlackBerry's recently completed strategic review process, as well as previously disclosed announcements concerning BlackBerry's operational restructuring, recent management changes and workforce reductions, may adversely impact BlackBerry's business, existing and future relationships with business partners and end customers of its products and services, and its ability to attract and retain key employees; risks related to BlackBerry's ability to offset or mitigate the impact of the decline in its service access fees on its consolidated revenue by developing an integrated services and software offering; intense competition, rapid change and significant strategic alliances within BlackBerry's industry; BlackBerry's ability to adapt to, and realize the anticipated benefit of, recent management changes; BlackBerry's increasing reliance on third-party manufacturers for certain products and its ability to manage its production and repair process, and risks related to BlackBerry changing manufacturers or reducing the number of manufacturers or suppliers it uses; risks related to BlackBerry's ability to implement and to realize the benefits of its previously-disclosed operational restructuring initiatives, including its CORE program, and its ability to continue to realize cost reductions in the future, including the on-going efforts to continue to implement a workforce reduction of approximately 4,500 positions by the end of the first quarter of fiscal 2015; the risk that workforce reductions may result in a disruption to business critical processes and the effectiveness of the Company's internal controls; BlackBerry's ability to maintain its existing relationships with its carrier partners and distributors;

BlackBerry's ability to maintain or increase its liquidity, its existing cash balance, to access existing or potential alternative sources of funding, the sufficiency of its financial resources, and its ability to service its debt; risks related to the Company's significant indebtedness; BlackBerry's ability to manage inventory and asset risk and the potential for additional charges related to its inventory; potential additional charges relating to the impairment of intangible assets recorded on BlackBerry's balance sheet; security risks; BlackBerry's ability to successfully maintain and enhance its brand; risks relating to network disruptions and other business interruptions, including costs, potential liabilities, lost revenues and reputational damage associated with service interruptions; risks associated with BlackBerry's foreign operations, including risks related to recent political and economic developments in Venezuela and Argentina and the impact of foreign currency restrictions; risks related to litigation, including litigation claims arising from BlackBerry's practice of providing forward-looking guidance; risks related to the failure of BlackBerry's suppliers and other parties it does business with to use acceptable ethical business practices; risks related to intellectual property rights; reliance on strategic alliances with third-party network infrastructure developers, software platform vendors and service platform vendors; risks related to the collection, storage, transmission, use and disclosure of confidential and personal information; BlackBerry's reliance on suppliers of functional components for its products and risks relating to its supply chain; BlackBerry's ability to obtain rights to use software or components supplied by third parties; BlackBerry's ability to expand and manage BlackBerry® World™; risks related to government regulations, including regulations relating to encryption technology; potential defects and vulnerabilities in BlackBerry's products; risks as a result of actions of activist shareholders; risks related to BlackBerry possibly losing its foreign private issuer status under U.S. federal securities laws; government regulation of wireless spectrum and radio frequencies; risks related to economic and geopolitical conditions; risks associated with acquisitions; foreign exchange risks; and difficulties in forecasting BlackBerry's financial results given the rapid technological changes, evolving industry standards, intense competition and short product life cycles that characterize the wireless communications industry.

These risk factors and others relating to BlackBerry are discussed in greater detail in the "Risk Factors" section of BlackBerry's Annual Information Form, which is included in its Annual Report on Form 40-F and the "Cautionary Note Regarding Forward-Looking Statements" section of BlackBerry's MD&A (copies of which filings may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on BlackBerry's forward-looking statements. BlackBerry has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The BlackBerry family of related marks, images and symbols are the exclusive properties and trademarks of BlackBerry Limited. BlackBerry, BBM, QNX and related trademarks are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries. All other brands, product names, Company names, trademarks and service marks are the properties of their respective owners.



                             BlackBerry Limited
                   Incorporated under the Laws of Ontario
   (United States dollars, in millions except share and per share amounts)
                                (unaudited)

                    Consolidated Statements of Operations



                        For the three months ended      For the year ended
                   ---------------------------------------------------------

                        March   November       March      March       March
                      1, 2014   30, 2013     2, 2013    1, 2014     2, 2013
----------------------------------------------------------------------------
Revenue             $     976  $   1,193   $   2,678  $   6,813   $  11,073
Cost of sales             423      2,457       1,603      6,856       7,639
                   ---------------------------------------------------------
Gross margin              553     (1,264)      1,075        (43)      3,434
                   ---------------------------------------------------------
  Gross margin %         56.7%    (106.0)%      40.1%      (0.6)%      31.0%
Operating expenses
  Research and
   development            246        322         383      1,286       1,509
  Selling,
   marketing and
   administration         355        548         523      2,103       2,111
  Amortization            107        148         181        606         714
  Impairment of
   long-lived
   assets                   -      2,748           -      2,748           -
  Impairment of
   goodwill                 -          -           -          -         335
  Debentures fair
   value adjustment       382         (5)          -        377           -
                   ---------------------------------------------------------
                        1,090      3,761       1,087      7,120       4,669
                   ---------------------------------------------------------
Operating loss           (537)    (5,025)        (12)    (7,163)     (1,235)
  Investment income
   (loss), net            (20)         -          (6)       (21)         15
                   ---------------------------------------------------------
Loss from
 continuing
 operations before
 income taxes            (557)    (5,025)        (18)    (7,184)     (1,220)
Recovery of income
 taxes                   (134)      (624)       (112)    (1,311)       (592)
                   ---------------------------------------------------------
Income (loss) from
 continuing
 operations              (423)    (4,401)         94     (5,873)       (628)
Income (loss) from
 discontinued
 operations, net of
 tax                        -          -           4          -         (18)
                   ---------------------------------------------------------
Net income (loss)   $    (423) $  (4,401)  $      98  $  (5,873)  $    (646)
                   ---------------------------------------------------------
                   ---------------------------------------------------------
Earnings (loss) per
 share
  Basic and diluted
   earnings (loss)
   per share from
   continuing
   operations           (0.80)     (8.37)       0.18     (11.18)      (1.20)
  Basic and diluted
   earnings (loss)
   per share from
   discontinued
   operations               -          -        0.01          -       (0.03)
                   ---------------------------------------------------------
  Total basic and
   diluted earnings
   (loss) per share $   (0.80) $   (8.37)  $    0.19  $  (11.18)  $   (1.23)
                   ---------------------------------------------------------
                   ---------------------------------------------------------
Weighted-average
 number of common
 shares outstanding
 (000's)
  Basic               526,374    525,656     524,160    525,168     524,160
  Diluted             526,374    525,656     527,222    525,168     524,160
Total common shares
 outstanding
 (000's)              526,552    526,184     524,160    526,552     524,160




                             BlackBerry Limited
                   Incorporated under the Laws of Ontario
   (United States dollars, in millions except per share data) (unaudited)

                         Consolidated Balance Sheets


                                                    March             March
As at                                             1, 2014           2, 2013
----------------------------------------------------------------------------
Assets
Current
  Cash and cash equivalents              $          1,579  $          1,549
  Short-term investments                              950             1,105
  Accounts receivable, net                            972             2,353
  Other receivables                                   152               272
  Inventories                                         244               603
  Income taxes receivable                             373               597
  Other current assets                                505               469
  Deferred income tax asset                            73               139
  Assets held for sale                                209               354
                                        ------------------------------------
                                                    5,057             7,441
Long-term investments                                 129               221
Property, plant and equipment, net                    942             2,073
Intangible assets, net                              1,424             3,430
                                        ------------------------------------
                                         $          7,552  $         13,165
                                        ------------------------------------
                                        ------------------------------------
Liabilities
Current
  Accounts payable                       $            474  $          1,064
  Accrued liabilities                               1,214             1,854
  Deferred revenue                                    580               542
                                        ------------------------------------
                                                    2,268             3,460
Long-term debt                                      1,627                 -
Deferred income tax liability                          32               245
                                        ------------------------------------
                                                    3,927             3,705
                                        ------------------------------------
Shareholders' Equity
Capital stock and additional paid-in
 capital                                            2,418             2,431
Treasury stock                                       (179)             (234)
Retained earnings                                   1,394             7,267
Accumulated other comprehensive income
 loss                                                  (8)               (4)
                                        ------------------------------------
                                                    3,625             9,460
                                        ------------------------------------
                                         $          7,552  $         13,165
                                        ------------------------------------
                                        ------------------------------------


                             BlackBerry Limited
                   Incorporated under the Laws of Ontario
   (United States dollars, in millions except per share data) (unaudited)

                    Consolidated Statements of Cash Flows


                                                  For the year ended
                                        ------------------------------------

                                                    March             March
                                                  1, 2014           2, 2013
----------------------------------------------------------------------------
Cash flows from operating activities
Loss from continuing operations          $         (5,873) $           (628)
Loss from discontinued operations                       -               (18)
                                        ------------------------------------
Net loss                                           (5,873)             (646)
Adjustments to reconcile net loss to net
 cash provided by (used in) operating
 activities:
Amortization                                        1,270             1,918
Deferred income taxes                                (149)               87
Stock-based compensation                               68                86
Impairment of long-lived assets                     2,748                 -
Impairment of goodwill                                  -               335
Debentures fair value adjustment                      377                 -
Other                                                 141                36
Net changes in working capital items                1,259               487
                                        ------------------------------------
Net cash provided by (used in) operating
 activities                                          (159)            2,303
                                        ------------------------------------
Cash flows from investing activities
Acquisition of long-term investments                 (229)             (296)
Proceeds on sale or maturity of long-
 term investments                                     284               227
Acquisition of property, plant and
 equipment                                           (283)             (418)
Proceeds on sale of property, plant and
 equipment                                             49                 5
Acquisition of intangible assets                   (1,080)           (1,005)
Business acquisitions, net of cash
 acquired                                              (7)              (60)
Acquisition of short-term investments              (1,699)           (1,472)
Proceeds on sale or maturity of short-
 term investments                                   1,925               779
                                        ------------------------------------
Net cash used in investing activities              (1,040)           (2,240)
                                        ------------------------------------
Cash flows from financing activities
Issuance of common shares                               3                 -
Tax deficiencies related to stock-based
 compensation                                         (13)              (11)
Purchase of treasury stock                            (16)              (25)
Issuance of debt                                    1,250                 -
                                        ------------------------------------
Net cash provided by (used in) financing
 activities                                         1,224               (36)
                                        ------------------------------------
Effect of foreign exchange gain (loss)
 on cash and cash equivalents                           5                (5)
Net increase in cash and cash
 equivalents for the year                              30                22
Cash and cash equivalents, beginning of
 year                                               1,549             1,527
                                        ------------------------------------
Cash and cash equivalents, end of year   $          1,579  $          1,549
                                        ------------------------------------
                                        ------------------------------------


----------------------------------------------------------------------------
                                                    March          November
As at                                             1, 2014          30, 2013
----------------------------------------------------------------------------
Cash and cash equivalents                $          1,579  $          2,274
Short-term investments                                950               788
Long-term investments                                 129               130
                                        ------------------------------------
                                         $          2,658  $          3,192
                                        ------------------------------------
                                        ------------------------------------

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines...