BlackBerry Posts A Mixed Q4 As Hardware & SAF Revenues Lag

April 4th, 2016 by Trefis Team

BlackBerry (NASDAQ:BBRY) published a mixed set of Q4 FY 2016 results on Friday April 1, missing market expectations on revenues although its net loss was smaller than expected. Revenue from the software business fell by about 13% sequentially, potentially due to lower technology licensing activity. However,  year-over-year software revenue growth was strong at about 106%, driven by recent acquisitions and customer wins for BlackBerry Enterprise Server. BlackBerry added a total of 3,600 enterprise customers over Q4. Hardware and other revenues remained under pressure (15% sequential decline), despite the launch of the Priv – BlackBerry’s new flagship Android-based handset. Service access fee (SAF) revenues also declined at about 18% over Q4, sharper than BlackBerry’s projected 15% sequential declines. Below is a brief overview of the key metrics from the company’s earnings press release.  ((BlackBerry Q4 2016 Earnings Press Release))

 

BBRY_Q4_2

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We have an $8.50 price estimate for BlackBerry, which is slightly ahead of the current market price.

See our complete analysis for BlackBerry here

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