BlackBerry has trimmed its full-year revenue outlook and announced the appointment of a Chief Revenue Officer at its second-quarter report. Adjusted revenues for the three months to August rose 22 percent year-on-year to USD 221 million. BlackBerry said it expects growth of 23-25 percent over the full year, down from an earlier outlook of 23-27 percent growth, while adjusted earnings should be positive in the fiscal year, compared to breakeven in the past quarter.
The company said that CFO Steve Capelli will move into the newly-created role of Chief Revenue Officer to drive revenue-generating and business development activities across the company. Deputy CFO Steve Rai will take over as CFO, with both appointments taking effect 01 October.
BlackBerry's GAAP reported revenues were up 16 percent year-on-year to USD 244 million in Q2, including a 24 percent increase in software and services to USD 239 million. The company posted an adjusted operating profit of USD 2 million, while the reported result was a loss of USD 43 million. The bottom line was breakeven on an adjusted basis and a reported net loss of USD 0.10 per diluted share.
The net loss includes USD 36 million for acquired intangibles amortization expense, USD 14 million in stock compensation expense, USD 2 million in acquisition and integration charges and a benefit of USD 23 million on a debt fair value adjustment. Excluding the acquisition and integration expenses, restructuring costs and legal proceedings, BlackBerry generated free cash flow of USD 17 million. The group ended August with cash and equivalents of USD 938 million.
BlackBerry said its QNX, Cylance and Licensing businesses executed at or better than expectations in the quarter. In addition, it was seeing a positive reception on the new product BlackBerry Intelligent Security, with more new products to come in the next six months.
