BlackBerry Reports Fiscal Fourth Quarter and Fiscal Year 202

|Mar 31|magazine60 min read

Fiscal Year 2020

- Total company non-GAAP revenue of $1,099 million, or 20% growth year-over-year; total company GAAP revenue of $1,040 million, or 15% growth year-over-year.

- Total non-GAAP Software and Services revenue of $1,078 million, or 26% growth year-over-year; total GAAP Software and Service revenue of $1,019 million, or 21% growth year-over-year.

- Fiscal year 2020 total Software and Services billings grew by a double-digit percentage year-over-year.

- Fiscal year 2020 non-GAAP earnings per basic and diluted share of $0.13, above the $0.08 provided in the financial outlook for fiscal year 2020.  Fiscal year 2020 GAAP loss per basic share of $0.27 and GAAP loss per diluted share of $0.32.

- Net cash provided by operating activities of $26 million and capital expenditures of $12 million resulted in free cash flow generated of $14 million.

Fourth Quarter Fiscal 2020

- Total company non-GAAP revenue of $291 million, or 13% growth year-over-year; total company GAAP revenue of $282 million, or 11% growth year-over-year.

- Total non-GAAP Software and Services revenue of $287 million, or 16% growth year-over-year; total GAAP Software and Services revenue of $278 million, or 13% growth year-over-year; both are record quarterly highs.

- Non-GAAP earnings per basic and diluted share of $0.09; GAAP loss per basic and diluted share of $0.07.

- Net cash provided by operating activities of $35 million and capital expenditures of $3 million, resulted in free cash flow generated of $32 million.

WATERLOO, Ontario, March 31, 2020 /PRNewswire/ -- BlackBerry Limited (NYSE: BB; TSX: BB) today reported financial results for the three months and the twelve months ended February 29, 2020 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Fourth Quarter Fiscal 2020 Results

  • Total company non-GAAP revenue for the fourth quarter of fiscal 2020 was $291 million, up 13% year-over-year. Total company GAAP revenue for the fourth quarter of fiscal 2020 was $282 million, up 11% year-over-year. Total non-GAAP software and services revenue of $287 million, up 16% year-over-year. Total GAAP software and services revenue was $278 million, up 13% year-over-year. Fourth quarter recurring non-GAAP software and services revenue (excluding IP licensing and professional services) was over 90%. Non-GAAP gross margin was 77% and GAAP gross margin was 75%.
  • Non-GAAP operating earnings was $51 million. GAAP operating loss was $41 million. Non-GAAP earnings per share was $0.09 (basic and diluted). GAAP net loss per share was $0.07 (basic and diluted). GAAP net loss includes $35 million for acquired intangibles amortization expense, $27 million in goodwill and long-term asset impairment charges, $17 million in stock compensation expense, a charge of $5 million related to the fair value adjustment on the debentures, and other amounts as summarized in the table below.
  • Total cash, cash equivalents, short-term and long-term investments was $990 million as of February 29, 2020. Net cash provided by operating activities of $35 million and capital expenditures of $3 million resulted in free cash flow generated of $32 million.

"In fiscal 2020, we delivered $1.1 billion in non-GAAP revenue and $0.13 of non-GAAP earnings per share, released over 30 new products and made strong progress on developing BlackBerry's zero-trust architecture as part of the Spark platform.  This is essential for the secure IoT market," said John Chen, Executive Chairman and CEO, BlackBerry.  "We continue to have the right strategy and the right products to address the market's expanding security needs.  Although we are going through unprecedented times, we are excited about our future opportunities for long-term growth."

Outlook
BlackBerry will provide fiscal year 2021 outlook in connection with the quarterly earnings announcement on its earnings conference call.  The earnings call transcript will be made available on our website.

Use of Non-GAAP Financial Measures
The tables at the end of this press release include a reconciliation of the non-GAAP financial measures used by the company to comparable GAAP measures and an explanation of why the company uses them.

Conference Call and Webcast
A conference call and live webcast will be held today beginning at 5 p.m. ET, which can be accessed by dialing 1-877-682-6267 or by logging on at BlackBerry.com/Investors. A replay of the conference call will also be available at approximately 8 p.m. ET by dialing 1-800-585-8367 and entering Conference ID #3146558 and at the link above.

About BlackBerry
BlackBerry (NYSE: BB; TSX: BB) provides intelligent security software and services to enterprises and governments around the world. The company secures more than 500M endpoints including 150M cars on the road today.  Based in Waterloo, Ontario, the company leverages AI and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy solutions, and is a leader in the areas of endpoint security management, encryption, and embedded systems.  BlackBerry's vision is clear - to secure a connected future you can trust.

BlackBerry. Intelligent Security. Everywhere. 
For more information, visit BlackBerry.com and follow @BlackBerry  

Investor Contact:
BlackBerry Investor Relations
(519) 888-7465
[email protected]

Media Contact:
BlackBerry Media Relations
(519) 597-7273
[email protected]

This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding: BlackBerry's plans, strategies and objectives including the anticipated benefits of its strategic initiatives and its intentions to expand and enhance its product and service offerings.

The words "expect", "anticipate", "estimate", "may", "will", "should", "could", "intend", "believe", "target", "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances, including but not limited to, BlackBerry's expectations regarding its business, strategy, opportunities and prospects, the launch of new products and services, general economic conditions, competition, and BlackBerry's expectations regarding its financial performance.  Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following factors: BlackBerry's ability to enhance, develop, introduce or monetize products and services for the enterprise market in a timely manner with competitive pricing, features and performance; BlackBerry's ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; the intense competition faced by BlackBerry; the occurrence or perception of a breach of BlackBerry's network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; the failure or perceived failure of BlackBerry's solutions to detect or prevent security vulnerabilities; the outbreak of the COVID-19 coronavirus; BlackBerry's continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; BlackBerry's dependence on its relationships with resellers and channel partners; BlackBerry's ability to obtain rights to use third-party software and its use of open source software; failure to protect BlackBerry's intellectual property and to earn revenues from intellectual property rights; litigation against BlackBerry;  the substantial asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; BlackBerry's indebtedness; acquisitions, divestitures and other business initiatives;  BlackBerry's products and services being dependent upon interoperability with rapidly changing systems provided by third parties; BlackBerry being found to have infringed on the intellectual property rights of others; the use and management of user data and personal information; network disruptions or other business interruptions; government regulations applicable to BlackBerry's products and services, including products containing encryption capabilities; foreign operations, including fluctuations in foreign currencies; the failure of BlackBerry's suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or comply with applicable laws; BlackBerry's ability to generate revenue and profitability through the licensing of security software and services or the BlackBerry brand to device manufacturers; BlackBerry's reliance on third parties to manufacture and repair its hardware products; fostering an ecosystem of third-party application developers; regulations regarding health and safety, hazardous materials usage and conflict minerals, and to product certification risks; tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities; the fluctuation of BlackBerry's quarterly revenue and operating results; the volatility of the market price of BlackBerry's common shares; and adverse economic and geopolitical conditions.

These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry's Annual Report on Form 10-K and the "Cautionary Note Regarding Forward-Looking Statements" section of BlackBerry's MD&A (copies of which filings may be obtained at www.sedar.com or www.sec.gov). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry's forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry's shareholders to view the anticipated performance and prospects of BlackBerry from management's perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry's financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry's business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. BlackBerry has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

BlackBerry Limited

Incorporated under the Laws of Ontario

(United States dollars, in millions except share and per share amounts) (unaudited)


Consolidated Statements of Operations 




For the Three Months Ended


For the Years Ended



February 29,
2020


November 30,
2019


February 28,
2019


February 29,
2020


February 28,
2019

Revenue


$

282



$

267



$

255



$

1,040



$

904


Cost of sales


70



69



49



277



206


Gross margin


212



198



206



763



698


Gross margin %


75.2

%


74.2

%


80.8

%


73.4

%


77.2

%

Operating expenses











Research and development


60



66



52



259



219


Selling, marketing and administration


113



132



110



493



409


Amortization


48



49



31



194



136


Impairment of long-lived assets


5







10




Impairment of goodwill


22







22




Debentures fair value adjustment


5



(20)



(6)



(66)



(117)


Arbitration awards and settlements, net






(9)





(9)




253



227



178



912



638


Operating income (loss)


(41)



(29)



28



(149)



60


Investment income (loss), net


(1)



(1)



4



1



17


Income (loss) before income taxes


(42)



(30)



32



(148)



77


Provision for (recovery of) income taxes


(1)



2



(19)



4



(16)


Net income (loss)


$

(41)



$

(32)



$

51



$

(152)



$

93


Earnings (loss) per share











Basic


$

(0.07)



$

(0.06)



$

0.09



$

(0.27)



$

0.17


Diluted


$

(0.07)



$

(0.07)



$

0.08



$

(0.32)



$

0.00













Weighted-average number of common shares outstanding (000s)











Basic


556,668



554,585



547,272



553,861



540,477


Diluted


556,668



615,085



615,593



614,361



616,467


Total common shares outstanding (000s)


554,199



552,132



547,358



554,199



547,084


 

BlackBerry Limited

Incorporated under the Laws of Ontario

(United States dollars, in millions) (unaudited)


Consolidated Balance Sheets




As at



February 29, 2020


February 28, 2019

Assets





Current





Cash and cash equivalents


$

377



$

548


Short-term investments


532



368


Accounts receivable, net


215



233


Other receivables


14



19


Income taxes receivable


6



9


Other current assets


52



56




1,196



1,233


Restricted cash and cash equivalents


49



34


Long-term investments


32



55


Other long-term assets


65



28


Deferred income tax assets




2


Operating lease right-of-use assets


124




Property, plant and equipment, net


70



85


Goodwill


1,437



1,463


Intangible assets, net


915



1,068




$

3,888



$

3,968


Liabilities





Current





Accounts payable


$

31



$

48


Accrued liabilities


202



192


Income taxes payable


18



17


Debentures


606




Deferred revenue, current


264



253




1,121



510


Deferred revenue, non-current


109



136


Operating lease liabilities


120




Other long-term liabilities


9



19


Long-term debentures




665


Deferred income tax liabilities




2




1,359



1,332


Shareholders' equity





Capital stock and additional paid-in capital


2,760



2,688


Deficit


(198)



(32)


Accumulated other comprehensive loss


(33)



(20)




2,529



2,636




$

3,888



$

3,968


 

BlackBerry Limited

Incorporated under the Laws of Ontario

(United States dollars, in millions) (unaudited)


Consolidated Statements of Cash Flows



For the Years Ended


February 29, 2020


February 28, 2019

Cash flows from operating activities




Net income (loss)

$

(152)



$

93


Adjustments to reconcile net income (loss) to net cash provided by operating activities:




Amortization

212



149


Deferred income taxes



(25)


Stock-based compensation

63



67


Impairment of goodwill

22




Impairment of long-lived assets

10




Non-cash consideration received from contracts with customers

(8)



(46)


Debentures fair value adjustment

(66)



(117)


Other long-term assets

(37)




Other long-term liabilities

2



(12)


Operating leases

(9)




Other

10



6


Net changes in working capital items




Accounts receivable, net

18



(9)


Other receivables

5



52


Income taxes receivable

3



17


Other assets

2



(1)


Accounts payable

(17)



(15)


Accrued liabilities

(15)



(21)


Income taxes payable

1



(2)


Deferred revenue

(18)



(36)


Net cash provided by operating activities

26



100


Cash flows from investing activities




Acquisition of long-term investments

(1)



(2)


Proceeds on sale or maturity of long-term investments

19



2


Acquisition of property, plant and equipment

(12)



(17)


Proceeds on sale of property, plant and equipment



1


Acquisition of intangible assets

(32)



(32)


Business acquisitions, net of cash acquired

1



(1,402)


Acquisition of short-term investments

(1,180)



(2,895)


Proceeds on sale or maturity of short-term investments

1,017



3,970


Net cash used in investing activities

(188)



(375)


Cash flows from financing activities




Issuance of common shares

9



5


Common shares repurchased




Payment of finance lease liability

(2)




Net cash provided by financing activities

7



5


Effect of foreign exchange loss on cash, cash equivalents, restricted cash, and restricted cash equivalents

(1)



(3)


Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents during the year

(156)



(273)


Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of year

582



855


Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year

$

426



$

582






As at

February 29, 2020


February 28, 2019

Cash and cash equivalents

$

377



$

548


Restricted cash and cash equivalents

$

49



$

34


Short-term investments

$

532



$

368


Long-term investments

$

32



$

55


Reconciliations of Non-GAAP Measures with the Nearest Comparable GAAP Measures

In the Company's internal reports, management evaluates the performance of the Company's business on a non-GAAP basis by excluding the impact of the items below from the Company's financial results. The Company believes that excluding the below items provides readers of the Company's financial statements with a more consistent basis for comparison across accounting periods and is more useful in helping readers understand the Company's operating results and underlying operational trends.

Readers are cautioned that adjusted revenue, adjusted gross margin (before taxes), adjusted gross margin percentage (before taxes), adjusted operating expense, adjusted operating income, adjusted EBITDA, adjusted operating income margin percentage, adjusted EBITDA margin percentage, adjusted net income (loss), adjusted income (loss) per share, adjusted research and development expense, adjusted selling, marketing and administrative expense, adjusted amortization expense and free cash flow and similar measures do not have any standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to similarly titled measures reported by other companies. These non-GAAP financial measures should be considered in the context of the U.S. GAAP results.

Reconciliation of non-GAAP based measures with most directly comparable GAAP based measures for the three months ended February 29, 2020 and February 28, 2019

A reconciliation of the most directly comparable U.S. GAAP financial measures for the three months ended February 29, 2020 and February 28, 2019 to adjusted financial measures is reflected in the tables below:

For the Three Months Ended (in millions) (unaudited)


February 29, 2020


February 28, 2019

Revenue


$

282



$

255


Software deferred revenue acquired (1)


9



2


Adjusted revenue


$

291



$

257







Gross margin (before taxes)


$

212



$

206


Software deferred revenue acquired (1)


9



2


Restructuring charges




1


Stock compensation expense


2



1


Adjusted gross margin (before taxes)


$

223



$

210







Gross margin % (before taxes)


75.2

%


80.8

%

Software deferred revenue acquired (1)


0.7

%


0.1

%

Restructuring charges


%


0.4

%

Stock compensation expense


0.7

%


0.4

%

Adjusted gross margin % (before taxes)


76.6

%


81.7

%






Operating expense


$

253



$

178


Restructuring charges


1



2


Stock compensation expense


15



13


Debenture fair value adjustment


5



(6)


Software deferred commission expense acquired


(3)




Acquired intangibles amortization


35



18


Business acquisition and integration costs


1



8


Goodwill impairment charge


22




LLA impairment charge


5




Arbitration awards and settlements, net




(9)


Adjusted operating expense


$

172



$

152





(1) See Reconciliation of U.S. GAAP IoT and BlackBerry Cylance revenue to adjusted IoT and BlackBerry Cylance revenue

Reconciliation of GAAP net income (loss) and GAAP basic earnings per share for the three months ended February 29, 2020 and  February 28, 2019 to adjusted net income and adjusted basic earnings per share is reflected in the tables below:

For the Three Months Ended (in millions, except per share amounts) (unaudited)


February 29, 2020


February 28, 2019





Basic
earnings
per share




Basic
earnings
per share

Net income (loss)


$

(41)



$(0.07)


$

51



$0.09

Software deferred revenue acquired


9





2




Restructuring charges


1





3




Stock compensation expense


17





14




Debenture fair value adjustment


5





(6)




Software deferred commission expense acquired


(3)








Acquired intangibles amortization


35





18




Business acquisition and integration costs


1





8




Goodwill impairment charge


22








LLA impairment charge


5








Arbitration awards and settlements, net






(9)




Acquisition valuation allowance






(21)




Adjusted net income


$

51



$0.09


$

60



$0.11

Reconciliation of U.S GAAP IoT, BlackBerry Cylance and software and service revenue for the three months ended February 29, 2020 and February 28, 2019 to adjusted IoT, BlackBerry Cylance and software and service revenue is reflected in the tables below:

For the Three Months Ended (in millions) (unaudited)


February 29, 2020


February 28, 2019

IoT Revenue


$

127



$

144


Software deferred revenue acquired




1


Adjusted IoT revenue


$

127



$

145







BlackBerry Cylance Revenue


$

43



$

3


Software deferred revenue acquired


9



1


Adjusted BlackBerry Cylance Revenue


$

52



$

4







Software and Service revenue





Revenue


$

282



$

255


Less: Other revenue


4



9


Software and Service revenue


$

278



$

246


Software deferred revenue acquired


9



2


Adjusted Software and Service revenue


$

287



$

248


Reconciliation of U.S GAAP research and development, selling, marketing and administration, and amortization expense for the three months ended February 29, 2020 and February 28, 2019 to adjusted research and development, selling, marketing and administration, and amortization expense is reflected in the tables below:

For the Three Months Ended (in millions) (unaudited)


February 29, 2020


February 28, 2019

Research and development


$

60



$

52


Stock compensation expense


3



3


Adjusted research and development


$

57



$

49







Selling, marketing and administration


$

113



$

110


Restructuring charges


1



2


Software deferred commission expense acquired


(3)




Stock compensation expense


12



10


Business acquisition and integration costs


1



8


Adjusted selling, marketing and administration


$

102



$

90







Amortization


$

48



$

31


Acquired intangibles amortization


35



18


Adjusted amortization


$

13



$

13


Reconciliation of selected GAAP-based measures to non-GAAP based measures for the years ended February 29, 2020 and February 28, 2019

A reconciliation of the most directly comparable U.S. GAAP financial measures for the years ended February 29, 2020 and February 28, 2019 to adjusted financial measures is reflected in the tables below:

For the Fiscal Years Ended (in millions) (unaudited)


February 29, 2020


February 28, 2019

Revenue


$

1,040



$

904


Software deferred revenue acquired (1)


59



12


Adjusted revenue


$

1,099



$

916







Gross margin (before taxes)


$

763



$

698


Software deferred revenue acquired (1)


59



12


Restructuring charges


5



2


Stock compensation expense


5



4


Adjusted gross margin (before taxes)


$

832



$

716







Gross margin % (before taxes)


73.4

%


77.2

%

Software deferred revenue acquired (1)


1.4

%


0.3

%

Restructuring charges


0.5

%


0.2

%

Stock compensation expense


0.4

%


0.5

%

Adjusted gross margin % (before taxes)


75.7

%


78.2

%






Operating expense


$

912



$

638


Restructuring charges


5



9


Stock compensation expense


58



64


Debenture fair value adjustment


(66)



(117)


Software deferred commission expense acquired


(16)




Acquired intangibles amortization


141



82


Business acquisition and integration costs


4



12


Goodwill impairment charge


22




LLA impairment charge


10




Arbitration awards and settlements, net




(9)


Adjusted operating expense


$

754



$

597





(1) See Reconciliation of U.S GAAP IoT and BlackBerry Cylance revenue to adjusted IoT and BlackBerry Cylance revenue

Reconciliation of GAAP net income (loss) and GAAP basic earnings per share for the years ended February 29, 2020 and February 28, 2019 to the adjusted net income and basic earnings per share is reflected in the tables below:

For the Fiscal Years Ended (in millions, except per share amounts) (unaudited)


February 29, 2020


February 28, 2019





Basic
earnings
per share




Basic
earnings
per share

Net income (loss)


$

(152)



$

(0.27)



$

93



$

0.17


Software deferred revenue acquired


59





12




Restructuring charges


10





11




Stock compensation expense


63





68




Debenture fair value adjustment


(66)





(117)




Software deferred commission expense acquired


(16)








Acquired intangibles amortization


141





82




Business acquisition and integration costs


4





12




Goodwill impairment charge


22








LLA impairment charge


10








Arbitration awards and settlements, net






(9)




Acquisition valuation allowance


(1)





(21)




Adjusted net income


$

74



$0.13


$

131



$0.24

Reconciliation of U.S GAAP IoT, BlackBerry Cylance and software and service revenue for the years ended February 29, 2020 and February 28, 2019 to adjusted IoT, BlackBerry Cylance and software and service revenue is reflected in the tables below:

For the Fiscal Years Ended (in millions) (unaudited)


February 29, 2020


February 28, 2019

IoT Revenue


$

540



$

554


Software deferred revenue acquired


2



11


Adjusted IoT revenue


$

542



$

565







BlackBerry Cylance Revenue


$

151



$

5


Software deferred revenue acquired


57



1


Adjusted BlackBerry Cylance revenue


$

208



$

6







Software and Service revenue





Revenue


$

1,040



$

904


Less: Other revenue


21



59


Software and Service revenue


$

1,019



$

845


Software deferred revenue acquired


59



12


Adjusted software and service revenue


$

1,078



$

857


Reconciliation of U.S GAAP research and development, selling, marketing and administration, and amortization expense for the years ended February 29, 2020 and February 28, 2019 to adjusted research and development, selling, marketing and administration, and amortization expense is reflected in the tables below:

For the Fiscal Years Ended (in millions) (unaudited)


February 29, 2020


February 28, 2019

Research and development


$

259



$

219


Restructuring charges




2


Stock compensation expense


13



12


Adjusted research and development


$

246



$

205







Selling, marketing and administration


$

493



$

409


Restructuring charges


5



7


Software deferred commission expense acquired


(16)




Stock compensation expense


45



52


Business acquisition and integration costs


4



12


Adjusted selling, marketing and administration


$

455



$

338







Amortization


$

194



$

136


Acquired intangibles amortization


141



82


Adjusted amortization


$

53



$

54


Adjusted operating income, adjusted EBITDA, adjusted operating income margin percentage and adjusted EBITDA margin percentage for the three months ended February 29, 2020 and February 28, 2019 are reflected in the table below. These are non-GAAP financial measures that do not have any standardized meaning as prescribed by U.S. GAAP and are therefore unlikely to be comparable to similar measures presented by other companies.

For the Three Months Ended (in millions) (unaudited)


February 29, 2020


February 28, 2019

Operating income (loss)


$

(41)



$

28


Non-GAAP adjustments to operating income (loss)





Software deferred revenue acquired


9



2


Restructuring charges


1



3


Stock compensation expense


17



14


Debenture fair value adjustment


5



(6)


Software deferred commission expense acquired


(3)




Acquired intangibles amortization


35



18


Business acquisition and integration costs


1



8


Goodwill impairment charge


22




LLA impairment charge


5




Arbitration awards and settlements, net




(9)


Total non-GAAP adjustments to operating loss


92



30


Adjusted operating income


51



58


Amortization


52



33


Acquired intangibles amortization


(35)



(18)


Adjusted EBITDA


$

68



$

73







Adjusted revenue (per above)


$

291



$

257


Adjusted operating income margin % (1)


18

%


23

%

Adjusted EBITDA margin % (2)


23

%


28

%




(1) Adjusted operating income margin % is calculated by dividing adjusted operating income by adjusted revenue

(2) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by adjusted revenue

Adjusted operating income, adjusted EBITDA, adjusted operating income margin percentage and adjusted EBITDA margin percentage for the fiscal years ended February 29, 2020 and February 28, 2019 are reflected in the table below.

For the Fiscal Years Ended (in millions) (unaudited)


February 29, 2020


February 28, 2019

Operating income (loss)


$

(149)



$

60


Non-GAAP adjustments to operating income (loss)





Software deferred revenue acquired


59



12


Restructuring charges


10



11


Stock compensation expense


63



68


Debenture fair value adjustment


(66)



(117)


Software deferred commission expense acquired


(16)




Acquired intangibles amortization


141



82


Business acquisition and integration costs


4



12


Goodwill impairment charge


22




LLA impairment charge


10




Arbitration awards and settlements, net




(9)


Total non-GAAP adjustments to operating income


227



59


Adjusted operating income


78



119


Amortization


212



149


Acquired intangibles amortization


(141)



(82)


Adjusted EBITDA


$

149



$

186







Adjusted revenue (per above)


$

1,099



$

916


Adjusted operating income margin % (1)


7

%


13

%

Adjusted EBITDA margin % (2)


14

%


20

%




(1) Adjusted operating income margin % is calculated by dividing adjusted operating income by adjusted revenue

(2) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by adjusted revenue

 

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SOURCE BlackBerry Limited