Blackberry revenues for the fourth quarter fell to USD 464 million from 660 million the year before, pulled down by write-downs associated with recent acquisitions. The net result sank to a loss of USD 238 million or USD 0.45 per share, from a gain of 28 million or 0.05 per share, reflecting negative one-offs and amortisation, as well as pre-tax charges of USD 192 million related to restructuring and acquisition costs.
CEO John Chen said the company made progress on the key elements of its strategy, namely to grow software faster than the mobility software market, achieve device profitability and generate positive free cash flow. The company more than doubled its software and licensing revenue in the quarter and passed its target of USD 500 million for the full year. Adjusted revenues for software and services lifted 106 percent to USD 153 million, pushing full year adjusted revenues to USD 527 million.
On an adjusted basis, the revenue breakdown for the quarter was about 32 percent for software and services, 29 percent for service access fees (SAF), and 39 percent for hardware and other revenue.
Adjusted group EBITDA reached USD 78 million from 114 million in Q3. Total cash, cash equivalents, short-term and long-term investments amounted to USD 2.62 billion at end February. Purchase orders with contract manufacturers totaled USD 162 million at the end of the quarter, compared to 298 million at the end of the third quarter and 394 million the year earlier.
Looking to its fiscal full year 2017, Blackberry’s strategy is on track and its growth engines in place to continue to generate above market growth in software and achieve profitability objectives,” Chen said. The company expects to grow software and services at around 30 percent. It also sees a positive free cash flow and adjusted EBITDA.
