[dalinxz]

Carahsoft Technology Corp., Reston, Virginia, is awarded $4,183,518 for a firm-fixed-price blanket purchase agreement (BPA) contract to deliver BlackBerry software licenses and renewals, software maintenance support and professional consulting services of the BlackBerry Unified Endpoint Manager (UEM). Work will be performed in but not limited to Reston, Virginia, and services will be performed at other contractor's facilities. BlackBerry UEM provides control over servers, data and devices via a supported web browser to access the service, offers trusted end-to-end security and provides for the control needed to manage all endpoints and ownership models. Expected completion date is unknown due to future task orders. Future contract actions will be issued and funds obligated as individual task orders. This BPA includes a one-year base ordering period and two one-year optional ordering periods, which if exercised, would bring the estimated cumulative value to $11,965,788. No funding will be obligated at the time of award. This BPA was issued against Carahsoft's General Services Administration (GSA) Schedule 70 Contract GS-35F-0119Y and was competitively procured with quotations solicited via GSA's eBUY Portal from all GSA 70 holders whose scheduled contracts include the relevant special item numbers as specified in the request for quotation. The government received four quotations in response to the solicitation. The Naval Information Warfare Systems Command, San Diego, California, is the contracting activity (N00039-20-A-0003).

https://www.defense.gov/Newsroom/Con...icle/2135175//

Simply peanuts in revenue for a firm that pays their executives as large as BB does. Chen takes all the profits home.

[Corbu]

Questions?

Per usual, please post your questions for BB Management before next Wednesday.

We will report with 24 to 48 hours.

I know we did not last time around and I apologize for that.

Things are getting really serious, so please gather your thoughts and let's come up with some pertinent and answerable questions.

I am told that the guidance for 2021 is cash neutral.

[shanhetao]

Questions?

Per usual, please post your questions for BB Management before next Wednesday.

We will report with 24 to 48 hours.

I know we did not last time around and I apologize for that.

Things are getting really serious, so please gather your thoughts and let's come up with some pertinent and answerable questions.

I am told that the guidance for 2021 is cash neutral.

Thanks Corbu for organizing it. I have a couple of questions, but not sure whether they will answer those. I may ask questions about numbers, if they cannot give a specific number, would they give a range? Anyway here are my questions:

In their opinion, what would be the growth rate for Cylance for the incoming year? Why Cylance growth last year is lagging competitors so much? Is it pure lacking of EDR? If it is, will Cylance catch up this year, i.e. will Cylance have comparable growth rate like competitors, such as Crowdstrike?

On the ESS side, what would be their view of the growth rate? Given work from home demand increase significantly. Do they have a view of the industry growth for ESS? Why in the past 2 years, their ESS lagging the industry growth so much?

Regarding Athoc, what is the growth rate for the past few years? Given Everbridge has a very good guidance, what is their guidance for the Athoc growth this year?

Is there any potential for the company to be taken private or being acquired given current low price?

How about the big announcement of working the secure version of Amazon Alexa? It has been a while, will there be any significant revenue potential? Or it is not going anywhere.

When will Radar's revenue be significant enough? Like above 30-50 million a year? What is Radar growth rate?

Thanks very much.

[Corbu]

Thanks, shanhetao.

All questions are welcome, obviously. But the general idea is to come up with questions that are realistic and answerable. I cannot guarantee that they will all be asked or answered but you have my word this is a serious endeavor.

Cheers,

[elfabio80]

Questions?

Per usual, please post your questions for BB Management before next Wednesday.

We will report with 24 to 48 hours.

I know we did not last time around and I apologize for that.

Things are getting really serious, so please gather your thoughts and let's come up with some pertinent and answerable questions.

I am told that the guidance for 2021 is cash neutral.

Hi Corbu,

Thank you for the opportunity. My question; is BB actively looking for another partner after TCL in the mobile sector? If so, how much is BB looking for to obtain in terms of financial business?

Thanks. Stay healthy. Cheers.

[BanffMoose]

Simply peanuts in revenue for a firm that pays their executives as large as BB does. Chen takes all the profits home.

I think you misread that post. Carahsoft was awarded a contract by the US Navy to provide BlackBerry licenses and consulting to the Navy. A BlackBerry business partner getting a $4.1 million contract selling BlackBerry products is indirectly a good thing for BlackBerry.

BlackBerry just needs a lot more of these types of transactions.

[FeitaInc]

Questions?

To follow up on @shanhetao line of questions:

• Can you provide any colour into number of customers and typical deal size for Cylance? (aka are they dependent on a single large say 50m contract? industry peers like CrowdStrike reports number of customers, which goes to show strength / resiliency of order backlog.)
• How is the sales environment for Cylance? Are customers actively seeking you out or do you have to cold call them? what's the split between those two?
• what is the split in sales for Cylance between partner channels and you in-house sales team?
• on the earnings call you mentioned that your offering now is compatible with Intune. how much of a catalyst do you think that will be?
• Do you have any plans to recruit a new COO?

(I'll just update this list as I think of more.)

thanks @Corbu!

[FeitaInc]

It's actually scary that Prem doesn't take BlackBerry private....

along those lines, I wonder if Prem has considered asking BB to redeem the debentures early.

If they did that, pros for BB would be they would save interest & clean up their balance sheet. I don't think there is any chance that JC has any plans to use that money in the next 6 months.

If Prem is allowed to reinvest it into BB, at the current market cap he could buy about 1/3 of BB.

[_dimi_]

Hi Corbu,

Thank you

My question(s):

Are they aware of BlackBerry's current market cap, and share price performance? Is there a sense of urgency to restore faith in the company, or are they not too worried to see much smaller competitors with much higher market caps (Everbridge)? Are they exploring strategic alternatives, since BlackBerry is trading below book value, which usually indicates much bigger problems down the road? How are they protecting themselves, and their shareholders, against more uncertainty and potential disruptions (shareholder lawsuits, being acquired,...)?

[Dunt Dunt Dunt]

ARR has also been flat for Cylance. It's definitely a concern. Again this company is a tech company in transition with hardly any profits to speak of. So the expectation is they need to be growing towards something, or else the investment thesis is sort of weak.

IP Licensing is opaque and unpredictable and not really something you want invest $$ into, without a LOT more visibility than we can ever get as retail investors. IoT will be slow this year. No question about that. QNX revenue is driven in large part by how many cars are sold. ESS is suffering the same issue that mobile was going through a few years ago: commoditization.

So we cannot forget that BB intentionally put 1.2 billion chips on Cylance, plus all that opex they absorbed. That has to be the growth story. My worry is the strategy behind Cylance now. Again Chen mentioned mobile as their advantage. No, that's a very poor focus area IMO.

CrowdStrike and others are going after the MUCH more lucrative infrastructure, cloud and container protection space. That's where companies are spending money and that's where the actual security threats are and that's where the actual security wars are being fought against criminals and state entities. We are looking at CrowdStrike where I work, and so are many other people with similar enterprises. These are 7-8 figure sales opportunities and this is why CrowdStrike is growing.

You read some of the tech forums.... Cylance under BlackBerry is a negative. One of the main reasons some used it, was it was a very cheap solution, and no one thinks it will remain so under BlackBerry. So they are avoiding it now, so they aren't in a position later where they have to change things.

Would have been better if BlackBerry had gone away, and Cylance absorbed the new features that Athoc, QNX and Good could bring to Cylance.

[La Emperor]

You read some of the tech forums.... Cylance under BlackBerry is a negative. One of the main reasons some used it, was it was a very cheap solution, and no one thinks it will remain so under BlackBerry. So they are avoiding it now, so they aren't in a position later where they have to change things.

Would have been better if BlackBerry had gone away, and Cylance absorbed the new features that Athoc, QNX and Good could bring to Cylance.

Any links to the tech forums you've read? And Cylance is compared to which product, pricewise?

I actually thought Cylance's pricing was uber cheap, compared to other vendors out there even under BB.

[EchoTango]

Questions?

Per usual, please post your questions for BB Management before next Wednesday.

We will report with 24 to 48 hours.

I know we did not last time around and I apologize for that.

Things are getting really serious, so please gather your thoughts and let's come up with some pertinent and answerable questions.

I am told that the guidance for 2021 is cash neutral.

Hi Corbu :

My question is ;

It's always a central theme of the ER's to highlight the high margins achieved (77% in Q4 2020) in the respective business lines, can you help us understand why this does not translate into a healthy EPS ?

[_dimi_]

Hi Corbu :

My question is ;

It's always central theme of the ER's to highlight the high margins achieved (77% in Q4 2020) in the respective business lines, can you help us understand why this does not translate into a healthy EPS ?

For this quarter, they'll probably point you to the impairment of goodwill.... :-) now, if only they would grow towards 1.2 billion in stable software revenue, we'd see a handsom EPS.

[La Emperor]

Hi Corbu:

My Q:

Are they going to continue to expand their BPO in Southeast Asia? Or are they expanding more aggressively now due to the current crisis.
Thanks.

[Seadog83]

Hi Corbu,

I'd like to know what sort of pathway they have mapped out in order to get the share price to $30. When do they feel there will be a "tipping point" in the share price, and what do they think the trigger to effect it will be?

Are buybacks on the table at all?

With licensing going forward, is 250m a reasonable floor for the next few years going forward? I remember reading the average life of patents was 10 years, so if 250m is a floor, then that would be 2.5b of high margin revs right there, discounted to PV well in excess of current market cap.

Despite having superior products at least according to Chen comparing Cylance to CRWD, and the recent widely publicized Zoom security flaws which BB can supposedly secure, why isn't BB able to do even near as well as them.

[Corbu]

Official transcript:
https://www.blackberry.com/content/d...Transcript.pdf

[Dunt Dunt Dunt]

My guess is Chen can't answer any of these questions... not till he knows how long and how bad this pandemic is going to be. All his best plans are out the window right now.

They keep trying to integrate Cylance and maybe get their own remote office solutions more visible to the market...

But for shareholders... it's time to walk away and stop watching "BB". It will only drive you mad....

[BanffMoose]

Hi Corbu,

This question is more towards their UEM, At-hoc, WatchDox (or whatever they call it now), etc. Can you ask who is their target market, what is their penetration into that market and lastly are they attempting to broaden their market by say going after SMB or even consumers? Or have all the acquisitions been closed down or in the process of closing?

There has really been no real news of any of those product lines since they completed the acquisitions.

What is going on with Spark?

[BanffMoose]

Oops. Hit submit before I said "Thank you!"

[EchoTango]

Oops. Hit submit before I said "Thank you!"

I forgot too !

Thanks Corbu for taking the time to make this happen.

[dusdal]

Questions?

Per usual, please post your questions for BB Management before next Wednesday.

We will report with 24 to 48 hours.

I know we did not last time around and I apologize for that.

Things are getting really serious, so please gather your thoughts and let's come up with some pertinent and answerable questions.

I am told that the guidance for 2021 is cash neutral.

Thanks Corbu. While I don't expect much of an answer, the questions are probably similar to others here:

1. What is the short term outlook for work-from-home solutions as of today?
2. Are there any OBJECTIVE goals for BBM in this environment (given popularity of Zoom-type solutions)?
3. How do you explain competitors such as Crowdstrike offering solid growth projections for 2021, but BlackBerry not being able to offer any guidance at all?

[jsocan]

Hi Corbu,

Please ask this: What is the cross-pollination rate between UEM and Cylance customers over the past year since the acquisition of Cylance, and what is BB's projection/target for the current fiscal year. At present, percentage wise, how many of UEM customers have picked up Cylance, and how many of Cylance customers have became UEM customers too?

Thank you.

[dusdal]

Out of interest I did a quick revenue comparison with MOBL.

As you can see, despite being smaller, and with a higher price to sales premium, they are growing revenues slower than BB. With no revenue growth yoy.

(sequential q growth is under it's relevant quarter, and the final % under the share price is yoy % growth)

Their revenue guidance for 2020 was -5% to flat. And it's possible that at the time of this release they weren't seeing the Covid situation as clearly as we are today.

[_dimi_]

Out of interest I did a quick revenue comparison with MOBL.

As you can see, despite being smaller, and with a higher price to sales premium, they are growing revenues slower than BB. With no revenue growth yoy.

(sequential q growth is under it's relevant quarter, and the final % under the share price is yoy % growth)

Their revenue guidance for 2020 was -5% to flat. And it's possible that at the time of this release they weren't seeing the Covid situation as clearly as we are today.

Hi Dusdal,


Shouldn't you compare apples to apples? BlackBerry UEM business has done worse YoY compared to MobileIron? And the 30 million USD pipeline that JC was referring to, was not for their WFH offering, so is most likely coming from their UEM business? I'd assume that MobileIron is experiencing a similar "surge", but without a slowdown coming from other parts of the business like BlackBerry experiences with QNX? Who knows... after this Covid19 situation, MobileIron might even be a better buyout target... even as a "one-trick" pony?! Some are now hoping that BlackBerry's ESS business will double, just because JC spoke of a 30 million pipeline. You gotta wonder how much of that pipeline are free trials and if it will eventually result in revenue. A 30 million pipeline of which 100% gets converted into revenue is 7.5 million in extra revenue per quarter. So, who says that MobileIron can't do the same, or better..

[shanhetao]

Out of interest I did a quick revenue comparison with MOBL.

As you can see, despite being smaller, and with a higher price to sales premium, they are growing revenues slower than BB. With no revenue growth yoy.

(sequential q growth is under it's relevant quarter, and the final % under the share price is yoy % growth)

Their revenue guidance for 2020 was -5% to flat. And it's possible that at the time of this release they weren't seeing the Covid situation as clearly as we are today.

The comparison does not make sense. It is not apple to apple. Just think the 1.4 billion spent on the Cylance, and last year ESS for Blackberry has already declined a lot. The base is already very low.