Tech company BlackBerry (NYSE: BB) reported lower-than-anticipated fiscal 2023 fourth-quarter results. The quarterly results indicate tremendous stress on the company’s profit margins and untamed expenses. Overall, the stock of BlackBerry closed Friday’s trading session at $4.56, almost flat from its prior close.
The Waterloo, Ontario-based company reported fourth-quarter revenues of $151 million, down from $185 million in the same period last year.
For the quarter that ended February 28, 2023, the company posted a net loss of $495 million, or $0.85 per share, compared with a net income of $144 million, or $0.03 per share, in the quarter that ended February 28, 2022.
The losses were mainly driven by impairments of goodwill and long-lived assets of $245 million and $231 million, respectively.
Excluding restructuring charges, stock compensation expense, debentures fair value adjustment, acquired intangibles amortization, a goodwill impairment charge, and LLA impairment charges, among others, the company’s Q4 2023 non-GAAP net loss was $13 million, or $0.02 per share, a reversal from a Q4 2022 non-GAAP net income of $6 million, or $0.01 per share.
Wall Street analysts had anticipated the intelligent security software and services provider would report a net loss of $0.007 per share on revenues of $154 million.
Segment wise:
- IoT revenues were $53 million, almost unchanged from the previous year. The gross margin was 81%. Specifically, BlackBerry recorded a QNX royalty backlog of roughly $640 million.
- Cybersecurity revenue was $88 million, down from $122 million last year. The gross margin was 59%. Also, the annual recurring revenue was $298 million.
- Cybersecurity billings were $107 million.
- The aggregate software and services revenue was $141 million.
- Licensing and Other revenues were $10 million. The gross margin was 60%.
BlackBerry also posted GAAP gross margins of 66% and non-GAAP gross margins of 67%. The aggregate cash, cash equivalents, short-term terms, and long-term investments were $487 million.
For the current quarter (1Q 2024), analysts anticipate a net loss of $0.05 per share on revenues of $158.52 million. For FY 2024, Wall Street analysts forecast the cybersecurity and IoT services provider to report a net loss of $0.16 per share on revenues of $687.91 million.
The BlackBerry quarterly earnings miss is expected to keep the stock slightly bearish in the short term.
The historical price chart indicates that the stock of BlackBerry is ascending after testing the support level of 4. The next resistance is anticipated only near 7. Additionally, the stochastic indicator is in the oversold region. Therefore, we anticipate the stock price of BlackBerry to rally further in the upcoming trading sessions.
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