$BBRY Guides Up; Share Higher After Posting Solid Results

Can one of you Canadians out there tell me who is buying Blackberry devices? How on earth are they going to post positive free cash flow for 2016, as promised?

Back on earth, revenues fell 39% year over year for the Canadian telephone makers. However, they exceeded estimates, guided higher, and have $2.5 bill in cash.

This company is very stubborn and just won’t go away. They sort of remind me of MySpace.

Reports Q1 (May) net of breakeven, $0.08 better than the Capital IQ Consensus of ($0.08); revenues fell 39.2% year/year to $400 mln ($424 mln Non-GAAP) vs the $470.82 mln Capital IQ Consensus.

Co issues upside guidance for FY17, sees EPS of ($0.15) vs. ($0.34) Capital IQ Consensus Estimate.

BlackBerry had approximately 3,300 enterprise customer wins in the quarter. Approximately 74% of the first quarter software revenue was recurring.

Total cash, cash equivalents, short-term and long-term investments was $2.5 billion as of May 31, 2016. This reflects a use of free cash of $65 million, which includes negative $61 million of cash flow from operations.

Outlook: The Company anticipates maintaining a strong cash position and further reallocating additional resources to go-to-market and product development areas as it continues to execute on its strategy of positive adjusted EBITDA for the full 2017 fiscal year. “Our current plan calls for continued investments to expand our addressable markets and drive sustainable profitability and revenue growth. For the full fiscal year, we are on track to deliver 30 percent revenue growth in software and services. Based on a more efficient operating model, we expect a non-GAAP EPS loss of around 15 cents, compared to the current consensus of a 33 cent loss. We also expect to generate positive free cash flow for the full year.”