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published in Blogs
Mar 31, 2021
Blackberry (BB, $9.32) Q4 revenue misses expectations, amid patent negotiations

Blackberry (BB, $9.32) Q4 revenue misses expectations, amid patent negotiations

BlackBerry Limited   posted fourth quarter revenue that fell short of analysts’ expectations. This could in part be due to licensing revenue challenges amid negotiations to sell patents that bring in licensing revenue.

The company’s adjusted earnings for the quarter came in at 3 cents a share, on non-GAAP revenue of $215 million. In the same period a year ago, the company reported earnings of 9 cents a share on sales of $291 million. Analysts on average expected adjusted earnings of 3 cents a share on sales of $245 million.

BlackBerry is attempting to sell some patents to an unnamed buyer. “We entered into an exclusive negotiation with a North American party for the sale of a portion of the company’s portfolio, primarily related to mobile-devices messaging and wireless networking,” Chief Executive John Chen said in a conference call Tuesday. He added that BlackBerry “limited these licensing activities in the quarter due to the negotiations and because of accounting rules.”

Chen indicated that predicting 2021 results was made difficult by the patent negotiations. He said that if a sale does not happen, BlackBerry would project $100 million in annual licensing revenue. For its core software and services business, Chen expected annual sales of $675 million to $715 million.

 

 

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