[BanffMoose]

Are they even involved? Other than Mike was one of the founders of IQC.

BlackBerry's R&D budget is not a good sign for their ability to be on the cutting edge of some of these newer technologies.

That's my point. Mike and Jim squandered Certicom's ECC opportunity and now BBRY isn't spending R&D on the next gen of encryption.

Posted via CB10

[_dimi_]

Is the non-GAAP target $685M for software/services for FY17? Doesn't that require >$200M for Q4? They must be expecting a very nice quarter.

Or is the target really less than $685? In other words, is the target actually 1.3x the FY16 total, excluding the IP portion?

I believe they are targetting 681 million USD in non-GAAP revenue this fiscal year (up 30% from 524 million USD in non-GAAP last fiscal year). The GAAP numbers for Q1, Q2 and Q3 are 142, 138 and 160 million USD. But non-GAAP numbers were much higher: 166, 156 and 172 million USD. So they would 'only' need 187 million in non-GAAP revenue in Q4. Is that correct?

Posted via CB10

[DaSchwantz]

Are they even involved? Other than Mike was one of the founders of IQC.

BlackBerry's R&D budget is not a good sign for their ability to be on the cutting edge of some of these newer technologies.

No, but all the work is happening quite literally 1-2 blocks away from the bbry head office, is closely affiliated with UofW, as is bbry's recent autonomous vehicle project...no overlap I can see at this point...the quantum computing work is still theoretical, IMO, but along with IQC Mike also founded Quantum Valley investments which is a closely held venture / incubator for start-ups moving toward commercialization...also just down the street. Lots of opportunities for cross-pollination / early stage investments once there is a closer fit, and bbry would likely have first mover advantage. You can bet they are paying attention.

[Dunt Dunt Dunt]

No, but all the work is happening quite literally 1-2 blocks away from the bbry head office, is closely affiliated with UofW, as is bbry's recent autonomous vehicle project...no overlap I can see at this point...the quantum computing work is still theoretical, IMO, but along with IQC Mike also founded Quantum Valley investments which is a closely held venture / incubator for start-ups moving toward commercialization...also just down the street. Lots of opportunities for cross-pollination / early stage investments once there is a closer fit, and bbry would likely have first mover advantage. You can bet they are paying attention.

Sad thing is I think much of the tech boom in that area is becuase of BlackBerry to begin with. BlackBerry created a number of programs designed as incubators so they would have the talent then needed as they grew. But their decline has left a number of talented people looking for work and other tech companies have moved there for the huge talent pool.

But that means... most every large tech company now has an office in the area. They are all paying attention.

[DaSchwantz]

Sad thing is I think much of the tech boom in that area is becuase of BlackBerry to begin with. BlackBerry created a number of programs designed as incubators so they would have the talent then needed as they grew. But their decline has left a number of talented people looking for work and other tech companies have moved there for the huge talent pool.

But that means... most every large tech company now has an office in the area. They are all paying attention.

There was a tech cluster there before BlackBerry (RIM) got big...(Open Text, for example), but RIM and Lazaridis certainly did turn the local cluster into much more of a major presence, with the university as the centre of gravity for it all. In other cases (e.g. Kik) companies were started by people who once worked for BlackBerry. Today much of the major tech office space (e.g. Google's new complex) is located in Kitchener, and is detached from the university. Interestingly, one major company with virtually no local presence is Apple...all I can see in Ontario are the retail operations, the QNX poaching operation in Kanata, and lots and lots of independent iOS app developers. Never understood why iPhone is so popular here, even with all the (blind) 'buy local ' types.

[Corbu]

QNX Auto Blog: CES Blog Series: From Concept to Reality: BlackBerry-QNX's Groundbreaking CES Tradition
QNX Auto Blog: CES Blog Series: Holistic Security for the Software-Defined Car
QNX Auto Blog: CES blog series: On 64-bit and roadmap alignment

So, while I can’t specifically reveal what new and exciting technologies we are planning for CES 2017, I can say that the three (Yes, three!) cars we will be showing will demonstrate cutting edge technologies that will, as our track record shows, be available in cars powered by QNX sooner, rather than later. Come take a look!

[seven90]

Benj Gallander's Top Picks: December 22, 2016 - Article - BNN

Benj has had a high rate of annual return on his picks, with high number of them being take overs at a premium

[app_Developer]

I believe they are targetting 681 million USD in non-GAAP revenue this fiscal year (up 30% from 524 million USD in non-GAAP last fiscal year). The GAAP numbers for Q1, Q2 and Q3 are 142, 138 and 160 million USD. But non-GAAP numbers were much higher: 166, 156 and 172 million USD. So they would 'only' need 187 million in non-GAAP revenue in Q4. Is that correct?

Ah, yes, $187 looks right. I suppose that is possible, and would demonstrate strong organic growth. Otherwise, I worry that we haven't really seen clear organic growth this year. The YoY comparisons are largely accretion from Good, right?

[_dimi_]

Ah, yes, $187 looks right. I suppose that is possible, and would demonstrate strong organic growth. Otherwise, I worry that we haven't really seen clear organic growth this year. The YoY comparisons are largely accretion from Good, right?

But didn't the majority of IP deals (and therefore revenue) take place in FY2016? Could be that we're seeing quite a bit of organic growth as they've replaced that portion nicely so far?

Posted via CB10

[La Emperor]

FWIW: A small South Korean company supplies automotive browser to QNX..

http://english.etnews.com/20161222200002

[La Emperor]

FWIW: A small South Korean company supplies automotive browser to QNX..

http://english.etnews.com/20161222200002

[Corbu]

https://www.slashgear.com/blackberry...2017-22468482/
BlackBerry Mercury could be the Android innovator in 2017

[Corbu]

https://blog.bbm.com/2016/12/22/look...-year-for-bbm/
Looking Back on 2016, a Breakout Year for BBM
Matthew Talbot

[rarsen]

From the Related Technologies file, for those looking at wearables at this time of the year:
Why Apple Is Optimistic about Growth in Smartwatch Segment - Market Realist


Fitbit has reportedly acquired Pebble at a value less than $40.0 million. According to Bloomberg, Fitbit won’t take over Pebble’s debt and will sell a majority of its assets, including inventory and IT (information technology) support equipment.
According to AppleInsider, “The deal is more about acquiring software and talent the company needs to fight Apple in the wearable arena, and less about the Pebble product line.”

Comment: Hoping some BB10 software for Pebble is transfered to my Fitbit bracelet.

[robot_ca]

https://blog.bbm.com/2016/12/22/look...-year-for-bbm/
Looking Back on 2016, a Breakout Year for BBM
Matthew Talbot

Thanks for this Corbu. Very interesting evolution of BBM. Makes you wonder where we would be today if they went down this road 3 or 4 years ago. I'm wondering, again, if this becomes an end run around Google Play/ Apple store to create a cross platform content/app store that doesn't lock you into a specific device or OS? Could eventually breathe some new life into BB10. You never know.
Thanks again for all of the information you post on this site. Very Much appreciated!

Posted via CB10

[rarsen]

From the Related Technologies and Security file, be careful out there and don't be surprised by lack of honor of criminals returning your info. They are not Santa Claus:

Locky ransomware: How this malware menace evolved in just 12 months | ZDNet

Ransomware has become one of the biggest menaces on the internet: one analysis puts the total cost of the file-encrypting malware at $1bn for the whole year. Cyber-criminals have found that encrypting someone's files, usually by tricking them into clicking on a malicious attachment, and forcing them to pay a ransom to regain access can be extremely lucrative.
Locky requires users to pay using the Bitcoin currency, which helps to hide the Locky affiliates' identities from law enforcement. Typically the amount requested is between 0.5 to 1 Bitcoin, somewhere around $400 to $800.

[ZayDub]

I hope you all enjoy the holidays with your family and loved ones!

Posted via CB10

[Corbu]

Follow-up

Not quite your typical Christmas present for you all but, as promised, here is the information gathered from the post-EC BlackBerry management meeting I mentioned earlier this week. I hope you will find it useful.

Reasons for stock decline : needed more transparency on SW growth as there was some confusion on the 164 figure; actually, accounting for 8M in the Services Mobility Solutions segment, the figure is 172; also is go forward outlook, 30% for fiscal 17, but after that it is faster than market which is in the 10-15% range. Next Q, SW will be close to 200M. Enterprise, IP, Engineering and Professional Services will all contribute to get to 30% target.

Mobility Solutions’ higher margin was due to warranty reserves reduction. Margins should be in mid 20s. They had been reserving at a higher number (but they had fewer warranty and returns etc. then they had put aside), so it will move from the 40s margin to the mid 20s. Overall margins will be in mid 60s as well, from 70s again due to this.

About 250K phones sold this quarter. Still have Priv, Leap, Dtek 50 and Dtek 60 to sell and this inventory will be sold over the next 3 Qs. Some of the use of cash was to meet contractual obligations which are now about 35M and phasing out to zero as TCL takes over, as Dtek 60 is the last device BBRY will build.

Deferred Revenue line includes SAF, as well as Acquisition Deferred Revenue. Some of it also has to do with devices they have moved but not sold thru yet.

QNX AVIC is hiring 50 – 75 engineers and work will accelerate the connected/autonomous car. Investment will be over several years.

Are more write-downs coming? No. The data center has been written down; annual goodwill could also be, but nothing significant.

Investment needed to upgrade NOC. Not the network infrastructure as such, but the roadmap for enterprise platform, since now it can manage different endpoint types. Previously, it was a MDM solution and now it will be an IoT management platform. R&D will be normal and is part of roadmap to enhance the ability of the enterprise platform to be a broader one to manage end points. R&D will not increase as a result, as this was planned several years ago.

198M in OPEX last Q included an FX adjustment, and will come down considerably in Q4, as they have a large employee base but not a large revenue in Canada so this resulted in negative 6M last quarter, it was positive the previous quarter.

The use of cash this quarter was 100M related to manufacturing supply chain commitments, last quarter there was 71M in purchase commitments and some inventory (so that is 3/4 of the 100M), and some related to restructuring facilities and severance. They still have 35M in purchase commitments and then TCL takes over. So that number will be 0 going forward after Q4, FY 2017.

Some of this cash will however come back when the phones are sold. Some of it was for inventory they had previously taken which means that timing was also the cause to a certain extent.

One thing to consider insofar as SW licensing is concerned is that the normal flow will look quite differently. Going forward, once existing devices have been sold - as JC said - the TCL deal (terms not disclosed) will be nearly 100% margin. But the revenue will obviously be lower.

Since TCL has strong relationships, they can move the process quite quickly in getting the device out to the major carriers. BBRY will handle all software and security updates as well as apps.

QNX’s revenue is on a per module basis. Others will develop applications on the QNX platform.

Most important: Is JC is still convinced they are on track?

In hindsight, had they stopped making HW before, more resources could perhaps have been allocated to selling SW. HOWEVER, the customers would have not been happy as they had no place to go. And this approach would have hurt the SW growth as many customers are cross-sold. Though long and painful, this process was necessary. Android was the right move due to app conundrum.

This is not a restart, even though the share price has not moved in 3 years since JC took over. But they have a growing SW business and expenses will be managed so there is incremental improvement thru the year until revenue exceeds decline of SAF, and they have strong operating margin and cash generating company.

Special thanks to those who need to be thanked. Their help is invaluable.

All the best to everyone. Merry Christmas! Be safe and take care of your family and friends.

[kadakn01]

BlackBerry Ltd. (BBRY) Raised to �Buy� at Zacks Investment Research

December 23rd, 2016*-

BlackBerry Ltd. (NASDAQ:BBRY) (TSE:BB)*was upgraded by Zacks Investment Research from a �hold� rating to a �buy� rating in a research report issued to clients and investors on Friday. The firm currently has a $8.25 price target on the smartphone producer�s stock. Zacks Investment Research�s price target points to a potential upside of 15.06% from the company�s previous close.

According to Zacks, �Shares of BlackBerry have outperformed the broader industry over the last six months. The company also reported narrower-than-expected loss in the third quarter of fiscal 2017. The company's new guidance with respect to the bottom line for fiscal 2017 is also encouraging. The company expects to return to profit in fiscal 2017. The previous outlook was in the range of breakeven results to a loss of $0.05 per share. We are also positive on BlackBerry's decision, announced in September, to end all internal hardware development and outsource the same to its partners. Recently, the company entered into a deal with Chinese handset manufacturer TCL Communications to produce BlackBerry handsets for certain countries across the globe.�

[cgk]

Follow-up

as Dtek 60 is the last device BBRY will build.

So is the Mercury to be build by TCL or is that dead and the phone to be announced by TCL at CES a different phone?

[bbjdog]

Merry Christmas to all and a happy safe holiday season.

[sidhuk]

http://www.cbc.ca/beta/news/world/re...aine-1.3908398

The implant leveraged a legitimate Android application developed by a Ukrainian artillery officer to process targeting data more quickly, CrowdStrike said. Its deployment "extends Russian cyber capabilities to the front lines of the battlefield", the report said, and "could have facilitated anticipatory awareness of Ukrainian artillery force troop movement, thus providing Russian forces with useful strategic planning information."

Downloads of the legitimate app were promoted on pages used by Ukrainian artillery on vKontakte, a Russian social media website, CrowdStrike said. There is no evidence the application was made available in the Android app store, limiting its distribution, the firm said.

The implant used on the legitimate app appears to be the first observed case of Fancy Bear malware used on the Android platform, according to the report.

[BanffMoose]

http://www.cbc.ca/beta/news/world/re...aine-1.3908398

The implant leveraged a legitimate Android application developed by a Ukrainian artillery officer to process targeting data more quickly, CrowdStrike said. Its deployment "extends Russian cyber capabilities to the front lines of the battlefield", the report said, and "could have facilitated anticipatory awareness of Ukrainian artillery force troop movement, thus providing Russian forces with useful strategic planning information."

Downloads of the legitimate app were promoted on pages used by Ukrainian artillery on vKontakte, a Russian social media website, CrowdStrike said. There is no evidence the application was made available in the Android app store, limiting its distribution, the firm said.

The implant used on the legitimate app appears to be the first observed case of Fancy Bear malware used on the Android platform, according to the report.

So, the premise behind the fall of the colonial fleet in the Battlestar Galactica reboot from the mid-2000's isn't that far fetched huh? If you didn't watch the show, the Cylons (bad guys) had a mole insert a Trojan into all aspects of the colonial fleets' (good guys) computer systems. Then they started to attack the colonies. The war was over in a few minutes because the Cylons turned off the colonial fleets' computer systems soon after battle ensued. Colonial fleet were reduced to sitting ducks and planetary defense systems were inoperable. The Galactica survived partly because the computer systems on that ship were old and not networked to each other. Almost like BBOS during the Sony hack. (There, brought it back to BlackBerry so this post isn't so off-topic. ) LOL

Great show. Hope Congress and military leaders go back and watch that show.

Posted via CB10

[ZayDub]

So is the Mercury to be build by TCL or is that dead and the phone to be announced by TCL at CES a different phone?

I noticed this comment too and was wondering the same

[kadakn01]

I noticed this comment too and was wondering the same

According to posts I saw on stock twits and twitter the new phone is going to be on Verizon and it will be released by TCL at CES with JC in Jan. See pics