BlackBerry Reports Fiscal Fourth Quarter and Fiscal Year 2020 Results
Fiscal Year 2020
- Total company non-GAAP revenue of $1,099 million, or 20% growth year-over-year; total company GAAP revenue of $1,040 million, or 15% growth year-over-year.
- Total non-GAAP Software and Services revenue of $1,078 million, or 26% growth year-over-year; total GAAP Software and Service revenue of $1,019 million, or 21% growth year-over-year.
- Fiscal year 2020 total Software and Services billings grew by a double-digit percentage year-over-year.
- Fiscal year 2020 non-GAAP earnings per basic and diluted share of $0.13, above the $0.08 provided in the financial outlook for fiscal year 2020. Fiscal year 2020 GAAP loss per basic share of $0.27 and GAAP loss per diluted share of $0.32.
- Net cash provided by operating activities of $26 million and capital expenditures of $12 million resulted in free cash flow generated of $14 million.
Fourth Quarter Fiscal 2020
- Total company non-GAAP revenue of $291 million, or 13% growth year-over-year; total company GAAP revenue of $282 million, or 11% growth year-over-year.
- Total non-GAAP Software and Services revenue of $287 million, or 16% growth year-over-year; total GAAP Software and Services revenue of $278 million, or 13% growth year-over-year; both are record quarterly highs.
- Non-GAAP earnings per basic and diluted share of $0.09; GAAP loss per basic and diluted share of $0.07.
- Net cash provided by operating activities of $35 million and capital expenditures of $3 million, resulted in free cash flow generated of $32 million.
WATERLOO, Ontario, March 31, 2020 /PRNewswire/ -- BlackBerry Limited (NYSE: BB; TSX: BB) today reported financial results for the three months and the twelve months ended February 29, 2020 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).
Fourth Quarter Fiscal 2020 Results
-- Total company non-GAAP revenue for the fourth quarter of fiscal 2020 was
$291 million, up 13% year-over-year. Total company GAAP revenue for the
fourth quarter of fiscal 2020 was $282 million, up 11% year-over-year.
Total non-GAAP software and services revenue of $287 million, up 16%
year-over-year. Total GAAP software and services revenue was $278
million, up 13% year-over-year. Fourth quarter recurring non-GAAP
software and services revenue (excluding IP licensing and professional
services) was over 90%. Non-GAAP gross margin was 77% and GAAP gross
margin was 75%.
-- Non-GAAP operating earnings was $51 million. GAAP operating loss was $41
million. Non-GAAP earnings per share was $0.09 (basic and diluted). GAAP
net loss per share was $0.07 (basic and diluted). GAAP net loss includes
$35 million for acquired intangibles amortization expense, $27 million
in goodwill and long-term asset impairment charges, $17 million in stock
compensation expense, a charge of $5 million related to the fair value
adjustment on the debentures, and other amounts as summarized in the
table below.
-- Total cash, cash equivalents, short-term and long-term investments was
$990 million as of February 29, 2020. Net cash provided by operating
activities of $35 million and capital expenditures of $3 million
resulted in free cash flow generated of $32 million.
"In fiscal 2020, we delivered $1.1 billion in non-GAAP revenue and $0.13 of non-GAAP earnings per share, released over 30 new products and made strong progress on developing BlackBerry's zero-trust architecture as part of the Spark platform. This is essential for the secure IoT market," said John Chen, Executive Chairman and CEO, BlackBerry. "We continue to have the right strategy and the right products to address the market's expanding security needs. Although we are going through unprecedented times, we are excited about our future opportunities for long-term growth."
Outlook
BlackBerry will provide fiscal year 2021 outlook in connection with the quarterly earnings announcement on its earnings conference call. The earnings call transcript will be made available on our website.
Use of Non-GAAP Financial Measures
The tables at the end of this press release include a reconciliation of the non-GAAP financial measures used by the company to comparable GAAP measures and an explanation of why the company uses them.
Conference Call and Webcast
A conference call and live webcast will be held today beginning at 5 p.m. ET, which can be accessed by dialing 1-877-682-6267 or by logging on at BlackBerry.com/Investors. A replay of the conference call will also be available at approximately 8 p.m. ET by dialing 1-800-585-8367 and entering Conference ID #3146558 and at the link above.
About BlackBerry
BlackBerry (NYSE: BB; TSX: BB) provides intelligent security software and services to enterprises and governments around the world. The company secures more than 500M endpoints including 150M cars on the road today. Based in Waterloo, Ontario, the company leverages AI and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy solutions, and is a leader in the areas of endpoint security management, encryption, and embedded systems. BlackBerry's vision is clear - to secure a connected future you can trust.
BlackBerry. Intelligent Security. Everywhere.
For more information, visit BlackBerry.com and follow @BlackBerry
Investor Contact:
BlackBerry Investor Relations
(519) 888-7465
investor_relations@blackberry.com
Media Contact:
BlackBerry Media Relations
(519) 597-7273
mediarelations@blackberry.com
This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding: BlackBerry's plans, strategies and objectives including the anticipated benefits of its strategic initiatives and its intentions to expand and enhance its product and service offerings.
The words "expect", "anticipate", "estimate", "may", "will", "should", "could", "intend", "believe", "target", "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, the launch of new products and services, general economic conditions, competition, and BlackBerry's expectations regarding its financial performance. 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 the following factors: BlackBerry's ability to enhance, develop, introduce or monetize products and services for the enterprise market in a timely manner with competitive pricing, features and performance; BlackBerry's ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; the intense competition faced by BlackBerry; the occurrence or perception of a breach of BlackBerry's network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; the failure or perceived failure of BlackBerry's solutions to detect or prevent security vulnerabilities; the outbreak of the COVID-19 coronavirus; BlackBerry's continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; BlackBerry's dependence on its relationships with resellers and channel partners; BlackBerry's ability to obtain rights to use third-party software and its use of open source software; failure to protect BlackBerry's intellectual property and to earn revenues from intellectual property rights; litigation against BlackBerry; the substantial asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; BlackBerry's indebtedness; acquisitions, divestitures and other business initiatives; BlackBerry's products and services being dependent upon interoperability with rapidly changing systems provided by third parties; BlackBerry being found to have infringed on the intellectual property rights of others; the use and management of user data and personal information; network disruptions or other business interruptions; government regulations applicable to BlackBerry's products and services, including products containing encryption capabilities; foreign operations, including fluctuations in foreign currencies; the failure of BlackBerry's suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or comply with applicable laws; BlackBerry's ability to generate revenue and profitability through the licensing of security software and services or the BlackBerry brand to device manufacturers; BlackBerry's reliance on third parties to manufacture and repair its hardware products; fostering an ecosystem of third-party application developers; regulations regarding health and safety, hazardous materials usage and conflict minerals, and to product certification risks; tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities; the fluctuation of BlackBerry's quarterly revenue and operating results; the volatility of the market price of BlackBerry's common shares; and adverse economic and geopolitical conditions.
These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry's Annual Report on Form 10-K 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). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry's forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry's shareholders to view the anticipated performance and prospects of BlackBerry from management's perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry's financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry's business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. 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 applicable law.
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 Years Ended
February 29, November 30, February 28, February 29, February 28,
2020 2019 2019 2020 2019
Revenue $
282 $
267 $
255 $
1,040 $
904
Cost of sales 70 69 49 277 206
Gross margin 212 198 206 763 698
Gross margin % 75.2 74.2 80.8 73.4 77.2
% % %
% %
Operating expenses
Research and development 60 66 52 259 219
Selling, marketing and
administration 113 132 110 493 409
Amortization 48 49 31 194 136
Impairment of long-lived
assets 5 10
Impairment of goodwill 22 22
Debentures fair value
adjustment 5 (20) (6) (66) (117)
Arbitration awards and
settlements, net (9) (9)
253 227 178 912 638
Operating income (loss) (41) (29) 28 (149) 60
Investment income (loss), net (1) (1) 4 1 17
Income (loss) before income
taxes (42) (30) 32 (148) 77
Provision for (recovery of)
income taxes (1) 2 (19) 4 (16)
Net income (loss) $
(41) $
(32) $
51 $
(152) $
93
Earnings (loss) per share
Basic $
(0.07) $
(0.06) $
0.09 $
(0.27) $
0.17
Diluted $
(0.07) $
(0.07) $
0.08 $
(0.32) $
0.00
Weighted-average number of
common shares outstanding
(000s)
Basic 556,668 554,585 547,272 553,861 540,477
Diluted 556,668 615,085 615,593 614,361 616,467
Total common shares outstanding
(000s) 554,199 552,132 547,358 554,199 547,084
BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions) (unaudited)
Consolidated Balance Sheets
As at
February 29, 2020 February 28, 2019
Assets
Current
Cash and cash equivalents $
377 $
548
Short-term investments 532 368
Accounts receivable, net 215 233
Other receivables 14 19
Income taxes receivable 6 9
Other current assets 52 56
1,196 1,233
Restricted cash and cash
equivalents 49 34
Long-term investments 32 55
Other long-term assets 65 28
Deferred income tax assets 2
Operating lease right-of-use
assets 124
Property, plant and equipment,
net 70 85
Goodwill 1,437 1,463
Intangible assets, net 915 1,068
$
3,888 $
3,968
Liabilities
Current
Accounts payable $
31 $
48
Accrued liabilities 202 192
Income taxes payable 18 17
Debentures 606
Deferred revenue, current 264 253
1,121 510
Deferred revenue, non-current 109 136
Operating lease liabilities 120
Other long-term liabilities 9 19
Long-term debentures 665
Deferred income tax liabilities 2
1,359 1,332
Shareholders' equity
Capital stock and additional
paid-in capital 2,760 2,688
Deficit (198) (32)
Accumulated other comprehensive
loss (33) (20)
2,529 2,636
$
3,888 $
3,968
BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions) (unaudited)
Consolidated Statements of Cash Flows
For the Years Ended
February 29, 2020 February 28, 2019
Cash flows from operating activities
Net income (loss) $
(152) $
93
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Amortization 212 149
Deferred income taxes - (25)
Stock-based compensation 63 67
Impairment of goodwill 22
Impairment of long-lived
assets 10
Non-cash consideration
received from contracts with
customers (8) (46)
Debentures fair value
adjustment (66) (117)
Other long-term assets (37)
Other long-term liabilities 2 (12)
Operating leases (9)
Other 10 6
Net changes in working capital items
Accounts receivable, net 18 (9)
Other receivables 5 52
Income taxes receivable 3 17
Other assets 2 (1)
Accounts payable (17) (15)
Accrued liabilities (15) (21)
Income taxes payable 1 (2)
Deferred revenue (18) (36)
Net cash provided by operating
activities 26 100
Cash flows from investing activities
Acquisition of long-term
investments (1) (2)
Proceeds on sale or maturity
of long-term investments 19 2
Acquisition of property, plant
and equipment (12) (17)
Proceeds on sale of property,
plant and equipment - 1
Acquisition of intangible
assets (32) (32)
Business acquisitions, net of
cash acquired 1 (1,402)
Acquisition of short-term
investments (1,180) (2,895)
Proceeds on sale or maturity
of short-term investments 1,017 3,970
Net cash used in investing
activities (188) (375)
Cash flows from financing activities
Issuance of common shares 9 5
Common shares repurchased -
Payment of finance lease
liability (2)
Net cash provided by financing
activities 7 5
Effect of foreign exchange
loss on cash, cash
equivalents, restricted cash,
and restricted cash
equivalents (1) (3)
Net decrease in cash, cash
equivalents, restricted cash,
and restricted cash
equivalents during the year (156) (273)
Cash, cash equivalents,
restricted cash, and
restricted cash equivalents,
beginning of year 582 855
Cash, cash equivalents,
restricted cash, and
restricted cash equivalents,
end of year $
426 $
582
As at February 29, 2020 February 28, 2019
Cash and cash equivalents $
377 $
548
Restricted cash and cash
equivalents $
49 $
34
Short-term investments $
532 $
368
Long-term investments $
32 $
55
Reconciliations of Non-GAAP Measures with the Nearest Comparable GAAP Measures
In the Company's internal reports, management evaluates the performance of the Company's business on a non-GAAP basis by excluding the impact of the items below from the Company's financial results. The Company believes that excluding the below items provides readers of the Company's financial statements with a more consistent basis for comparison across accounting periods and is more useful in helping readers understand the Company's operating results and underlying operational trends.
Readers are cautioned that adjusted revenue, adjusted gross margin (before taxes), adjusted gross margin percentage (before taxes), adjusted operating expense, adjusted operating income, adjusted EBITDA, adjusted operating income margin percentage, adjusted EBITDA margin percentage, adjusted net income (loss), adjusted income (loss) per share, adjusted research and development expense, adjusted selling, marketing and administrative expense, adjusted amortization expense and free cash flow and similar measures do not have any standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to similarly titled measures reported by other companies. These non-GAAP financial measures should be considered in the context of the U.S. GAAP results.
Reconciliation of non-GAAP based measures with most directly comparable GAAP based measures for the three months ended February 29, 2020 and February 28, 2019
A reconciliation of the most directly comparable U.S. GAAP financial measures for the three months ended February 29, 2020 and February 28, 2019 to adjusted financial measures is reflected in the tables below:
For the Three Months
Ended (in millions)
(unaudited) February 29, 2020 February 28, 2019
Revenue $
282 $
255
Software deferred
revenue acquired (1) 9 2
Adjusted revenue $
291 $
257
Gross margin (before
taxes) $
212 $
206
Software deferred
revenue acquired (1) 9 2
Restructuring charges 1
Stock compensation
expense 2 1
Adjusted gross margin
(before taxes) $
223 $
210
Gross margin % (before 75.2 80.8
taxes) % %
Software deferred 0.7 0.1
revenue acquired (1) % %
Restructuring charges
% 0.4
%
Stock compensation 0.7 0.4
expense % %
Adjusted gross margin % 76.6 81.7
(before taxes) % %
Operating expense $
253 $
178
Restructuring charges 1 2
Stock compensation
expense 15 13
Debenture fair value
adjustment 5 (6)
Software deferred
commission expense
acquired (3)
Acquired intangibles
amortization 35 18
Business acquisition
and integration costs 1 8
Goodwill impairment
charge 22
LLA impairment charge 5
Arbitration awards and
settlements, net (9)
Adjusted operating
expense $
172 $
152
(1) See Reconciliation of U.S. GAAP
IoT and BlackBerry Cylance revenue
to adjusted IoT and BlackBerry
Cylance revenue
Reconciliation of GAAP net income (loss) and GAAP basic earnings per share for the three months ended February 29, 2020 and February 28, 2019 to adjusted net income and adjusted basic earnings per share is reflected in the tables below:
For the Three Months
Ended (in millions,
except per share
amounts) (unaudited) February 29, 2020 February 28, 2019
Basic Basic
earnings earnings
per share per share
Net income (loss) $
(41) $(0.07) $
51 $0.09
Software deferred
revenue acquired 9 2
Restructuring charges 1 3
Stock compensation
expense 17 14
Debenture fair value
adjustment 5 (6)
Software deferred
commission expense
acquired (3)
Acquired intangibles
amortization 35 18
Business acquisition
and integration costs 1 8
Goodwill impairment
charge 22
LLA impairment charge 5
Arbitration awards and
settlements, net (9)
Acquisition valuation
allowance (21)
Adjusted net income $
51 $0.09 $
60 $0.11
Reconciliation of U.S GAAP IoT, BlackBerry Cylance and software and service revenue for the three months ended February 29, 2020 and February 28, 2019 to adjusted IoT, BlackBerry Cylance and software and service revenue is reflected in the tables below:
For
the
Three
Months
Ended
(in
millions)
(unaudited) February 29, 2020 February 28, 2019
IoT
Revenue $
127 $
144
Software
deferred
revenue
acquired 1
Adjusted
IoT
revenue $
127 $
145
BlackBerry
Cylance
Revenue $
43 $
3
Software
deferred
revenue
acquired 9 1
Adjusted
BlackBerry
Cylance
Revenue $
52 $
4
Software
and
Service
revenue
Revenue $
282 $
255
Less:
Other
revenue 4 9
Software
and
Service
revenue $
278 $
246
Software
deferred
revenue
acquired 9 2
Adjusted
Software
and
Service
revenue $
287 $
248
Reconciliation of U.S GAAP research and development, selling, marketing and administration, and amortization expense for the three months ended February 29, 2020 and February 28, 2019 to adjusted research and development, selling, marketing and administration, and amortization expense is reflected in the tables below:
For the Three Months
Ended (in millions)
(unaudited) February 29, 2020 February 28, 2019
Research and
development $
60 $
52
Stock compensation
expense 3 3
Adjusted research and
development $
57 $
49
Selling, marketing and
administration $
113 $
110
Restructuring charges 1 2
Software deferred
commission expense
acquired (3)
Stock compensation
expense 12 10
Business acquisition
and integration costs 1 8
Adjusted selling,
marketing and
administration $
102 $
90
Amortization $
48 $
31
Acquired intangibles
amortization 35 18
Adjusted amortization $
13 $
13
Reconciliation of selected GAAP-based measures to non-GAAP based measures for the years ended February 29, 2020 and February 28, 2019
A reconciliation of the most directly comparable U.S. GAAP financial measures for the years ended February 29, 2020 and February 28, 2019 to adjusted financial measures is reflected in the tables below:
For the Fiscal Years
Ended (in millions)
(unaudited) February 29, 2020 February 28, 2019
Revenue $
1,040 $
904
Software deferred
revenue acquired (1) 59 12
Adjusted revenue $
1,099 $
916
Gross margin (before
taxes) $
763 $
698
Software deferred
revenue acquired (1) 59 12
Restructuring charges 5 2
Stock compensation
expense 5 4
Adjusted gross margin
(before taxes) $
832 $
716
Gross margin % (before 73.4 77.2
taxes) % %
Software deferred 1.4
% 0.3
revenue acquired (1) %
Restructuring charges 0.5
% 0.2
%
Stock compensation 0.4
% 0.5
expense %
Adjusted gross margin % 75.7 78.2
(before taxes) % %
Operating expense $
912 $
638
Restructuring charges 5 9
Stock compensation
expense 58 64
Debenture fair value
adjustment (66) (117)
Software deferred
commission expense
acquired (16)
Acquired intangibles
amortization 141 82
Business acquisition
and integration costs 4 12
Goodwill impairment
charge 22
LLA impairment charge 10
Arbitration awards and
settlements, net (9)
Adjusted operating
expense $
754 $
597
(1) See Reconciliation of U.S GAAP
IoT and BlackBerry Cylance revenue
to adjusted IoT and BlackBerry
Cylance revenue
Reconciliation of GAAP net income (loss) and GAAP basic earnings per share for the years ended February 29, 2020 and February 28, 2019 to the adjusted net income and basic earnings per share is reflected in the tables below:
For the Fiscal Years
Ended (in millions,
except per share
amounts) (unaudited) February 29, 2020 February 28, 2019
Basic Basic
earnings earnings
per share per share
Net income (loss) $
(152) $
(0.27) $
93 $
0.17
Software deferred
revenue acquired 59 12
Restructuring charges 10 11
Stock compensation
expense 63 68
Debenture fair value
adjustment (66) (117)
Software deferred
commission expense
acquired (16)
Acquired intangibles
amortization 141 82
Business acquisition
and integration costs 4 12
Goodwill impairment
charge 22
LLA impairment charge 10
Arbitration awards and
settlements, net (9)
Acquisition valuation
allowance (1) (21)
Adjusted net income $
74 $0.13 $
131 $0.24
Reconciliation of U.S GAAP IoT, BlackBerry Cylance and software and service revenue for the years ended February 29, 2020 and February 28, 2019 to adjusted IoT, BlackBerry Cylance and software and service revenue is reflected in the tables below:
For
the
Fiscal
Years
Ended
(in
millions)
(unaudited) February 29, 2020 February 28, 2019
IoT
Revenue $
540 $
554
Software
deferred
revenue
acquired 2 11
Adjusted
IoT
revenue $
542 $
565
BlackBerry
Cylance
Revenue $
151 $
5
Software
deferred
revenue
acquired 57 1
Adjusted
BlackBerry
Cylance
revenue $
208 $
6
Software
and
Service
revenue
Revenue $
1,040 $
904
Less:
Other
revenue 21 59
Software
and
Service
revenue $
1,019 $
845
Software
deferred
revenue
acquired 59 12
Adjusted
software
and
service
revenue $
1,078 $
857
Reconciliation of U.S GAAP research and development, selling, marketing and administration, and amortization expense for the years ended February 29, 2020 and February 28, 2019 to adjusted research and development, selling, marketing and administration, and amortization expense is reflected in the tables below:
For the Fiscal Years
Ended (in millions)
(unaudited) February 29, 2020 February 28, 2019
Research and
development $
259 $
219
Restructuring charges 2
Stock compensation
expense 13 12
Adjusted research and
development $
246 $
205
Selling, marketing and
administration $
493 $
409
Restructuring charges 5 7
Software deferred
commission expense
acquired (16)
Stock compensation
expense 45 52
Business acquisition
and integration costs 4 12
Adjusted selling,
marketing and
administration $
455 $
338
Amortization $
194 $
136
Acquired intangibles
amortization 141 82
Adjusted amortization $
53 $
54
Adjusted operating income, adjusted EBITDA, adjusted operating income margin percentage and adjusted EBITDA margin percentage for the three months ended February 29, 2020 and February 28, 2019 are reflected in the table below. These are non-GAAP financial measures that do not have any standardized meaning as prescribed by U.S. GAAP and are therefore unlikely to be comparable to similar measures presented by other companies.
For the Three Months Ended (in
millions) (unaudited) February 29, 2020 February 28, 2019
Operating income (loss) $
(41) $
28
Non-GAAP adjustments to
operating income (loss)
Software deferred revenue
acquired 9 2
Restructuring charges 1 3
Stock compensation expense 17 14
Debenture fair value
adjustment 5 (6)
Software deferred commission
expense acquired (3)
Acquired intangibles
amortization 35 18
Business acquisition and
integration costs 1 8
Goodwill impairment charge 22
LLA impairment charge 5
Arbitration awards and
settlements, net (9)
Total non-GAAP adjustments to
operating loss 92 30
Adjusted operating income 51 58
Amortization 52 33
Acquired intangibles
amortization (35) (18)
Adjusted EBITDA $
68 $
73
Adjusted revenue (per above) $
291 $
257
Adjusted operating income
margin % (1) 18
% 23
%
Adjusted EBITDA margin % (2) 23
% 28
%
(1) Adjusted operating
income margin % is
calculated by dividing
adjusted operating income
by adjusted revenue
(2) Adjusted EBITDA margin
% is calculated by
dividing adjusted EBITDA
by adjusted revenue
Adjusted operating income, adjusted EBITDA, adjusted operating income margin percentage and adjusted EBITDA margin percentage for the fiscal years ended February 29, 2020 and February 28, 2019 are reflected in the table below.
For the Fiscal Years Ended (in
millions) (unaudited) February 29, 2020 February 28, 2019
Operating income (loss) $
(149) $
60
Non-GAAP adjustments to
operating income (loss)
Software deferred revenue
acquired 59 12
Restructuring charges 10 11
Stock compensation expense 63 68
Debenture fair value
adjustment (66) (117)
Software deferred commission
expense acquired (16)
Acquired intangibles
amortization 141 82
Business acquisition and
integration costs 4 12
Goodwill impairment charge 22
LLA impairment charge 10
Arbitration awards and
settlements, net (9)
Total non-GAAP adjustments to
operating income 227 59
Adjusted operating income 78 119
Amortization 212 149
Acquired intangibles
amortization (141) (82)
Adjusted EBITDA $
149 $
186
Adjusted revenue (per above) $
1,099 $
916
Adjusted operating income
margin % (1) 7
% 13
%
Adjusted EBITDA margin % (2) 14
% 20
%
(1) Adjusted operating
income margin % is
calculated by dividing
adjusted operating income
by adjusted revenue
(2) Adjusted EBITDA margin
% is calculated by
dividing adjusted EBITDA
by adjusted revenue
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SOURCE BlackBerry Limited
