BlackBerry has officially announced their year-end and fourth quarter report of fiscal 2015. Check out the press release below for details.

As always, a conference call and a N4BB Live blog will be held starting at 8:00am EST. The conference call can also be accessed by dialing in at 1-888-503-8168, or logging on here.

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Press Release

WATERLOO, ONTARIO–(Marketwired – March 27, 2015) – BlackBerry Limited (NASDAQ: BBRY)(TSX: BB), a global leader in mobile communications, today reported financial results for the three months and fiscal year ended February 28, 2015 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Q4 Highlights

— Normalized positive cash flow of $76 million in the quarter, reversing
normalized cash use of ($784) million in Q4 FY14
— Cash and investments balance of $3.27 billion at the end of the fiscal
quarter, an increase of $608 million over Q4 FY14 and matching the
highest balance in company history
— Non-GAAP earnings of $0.04 per share, reversing a loss per share of
($0.08) in Q4 FY14
— Non-GAAP operating income of $2 million reversing an operating loss of
($156) million in Q4 FY14
— Non-GAAP gross margin of 48.3% and GAAP gross margin of 48.2%, with a
third consecutive quarter of positive hardware gross margin
— Software revenue of $67 million, a 20% increase over Q4 FY14
— Announced a partnership with Google to support Android for Work
— Launched the BlackBerry Classic in December, with support for the
Classic and the previously-released Passport by major carriers,
including Telus, Bell, Rogers, AT&T, Verizon, Vodafone and Orange
— Completed the acquisition of Secusmart, a leader in high-security voice
and text encryption
— After the quarter at Mobile World Congress, announced the full-touch
BlackBerry Leap and unveiled the upcoming BlackBerry device portfolio
— Also at Mobile World Congress, announced the BlackBerry Experience Suite
software portfolio that brings BlackBerry’s productivity, communication,
collaboration and security across all smartphone and tablets running
iOS®, Android™, and Windows®
— Other product announcements at Mobile World Congress included BES 12
Cloud, integration of WorkLife and SecuSUITE with Samsung KNOX, and
Vodafone Germany’s rollout of Secusmart technology

Q4 Results
Revenue for the fourth quarter of fiscal 2015 was approximately $660 million, including a negative $12 million impact from currency fluctuation. The revenue breakdown for the quarter was approximately 42% for hardware, 47% for services and 10% for software. During the fourth quarter, the Company recognized hardware revenue on approximately 1.3 million BlackBerry smartphones. Approximately 1.6 million BlackBerry smartphones were sold through to end customers, with an ASP of $211 compared to $180 in the previous quarter.

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Non-GAAP profit for the fourth quarter was $20 million, or $0.04 per share, compared to earnings of $0.01 per share last quarter. GAAP net income for the quarter was $28 million, or $0.05 per share. GAAP net income includes a non-cash charge associated with the change in the fair value of the debentures of $50 million (the “Q4 Fiscal 2015 Debentures Fair Value Adjustment”), investment income of $115 million related to the Rockstar sale (the “Rockstar Sale Adjustment”) and pre-tax charges of $58 million related to the restructuring program. The impact of these adjustments on GAAP net income and earnings per share is summarized in a table below.

Total cash, cash equivalents, short-term and long-term investments was $3.27 billion as of February 28, 2015. The cash balance increased $156 million in the fourth quarter, including net gains of $80 million related to acquisitions and divestitures during the quarter. Aggregate contractual obligations amounted to approximately $1.3 billion as at February 28, 2015, compared to $1.6 billion at the end of the third quarter. Purchase orders with contract manufacturers totaled approximately $394 million at the end of the fourth quarter, compared to $565 million at the end of the third quarter. Excluding the impact of foreign exchange, operating cash flow was $205 million with free cash flow (operating cash flow minus capital expenditures) of $189 million.

“Our focus this past year was on getting our financial house in order while creating a multi-year growth strategy and investing in our product portfolio. We now have a very good handle on our margins, and our product roadmaps have been well received,” said Executive Chairman and CEO John Chen. “The second half of our turnaround focuses on stabilization of revenue with sustainable profitability and cash generation.”

Outlook

The Company continues to anticipate positive free cash flow.

The Company is expanding its distribution capability, and expects traction from these efforts to manifest some time in fiscal 2016. The company continues to target sustainable non-GAAP profitability some time in fiscal 2016.

Reconciliation of GAAP gross margin, gross margin percentage, loss before income taxes, net income) and earnings per share to Non-GAAP gross margin, gross margin percentage, loss before income taxes, net income and earnings per share:

(United States dollars, in millions except per share data)

For the three months ended February 28, 2015
———————————————————
Loss
before
Gross income Earnings
Gross margin margin % taxes Net income per share
———————————————————
As reported $ 318 48.2% $ (1) $ 28 $ 0.05
Adjustments:
CORE charges (1) 1 0.1% 58 57
Q4 Fiscal 2015
Debenture Fair
Value Adjustment
(2) – -% 50 50
Rockstar Sale
Adjustment (3) – -% (115) (115)
—————————————————————————-
Adjusted $ 319 48.3% $ (8) $ 20 $ 0.04
———————————————————
———————————————————

Note: Non-GAAP gross margin, gross margin percentage, loss before income taxes, non-GAAP net income and non-GAAP earnings per share do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company’s operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of the Company’s GAAP results.

(1) During the fourth quarter of fiscal 2015, the Company incurred charges
related to the restructuring program of approximately $58 million pre-
tax, or $57 million after tax, of which $1 million were included in
cost of sales, $6 million were included in research and development and
$51 million were included in selling, marketing, and administration
expenses.
(2) During the fourth quarter of fiscal 2015, the Company recorded the Q4
Fiscal 2015 Debentures Fair Value Adjustment of approximately $50
million. This adjustment was presented on a separate line in the
Statement of Operations.
(3) During the fourth quarter of fiscal 2015, the Company recorded the
Rockstar Sale Adjustment of approximately $115 million. This adjustment
is included in investment income (loss), net in the Statement of
Operations.

Fiscal 2015 Results
Revenue from continuing operations for the fiscal year ended February 28, 2015 was $3.3 billion. The Company’s Non-GAAP loss from continuing operations for fiscal 2015 was ($45) million or ($0.09) per share. The GAAP net loss from continuing operations was ($304) million, or ($0.58) per share. GAAP net loss from continuing operations includes the Rockstar Sale Adjustment of approximately $115 million (pre-tax and after-tax), the non-cash adjustments associated with the change in the fair value of the debentures of approximately $80 million (pre-tax and after tax) (the “Fiscal 2015 Debentures Fair Value Adjustment”) and pre-tax restructuring charges of approximately $322 million ($294 million after tax) related to the Company’s CORE program. These charges and their related impacts on GAAP net loss from continuing operations and diluted loss per share from continuing operations are summarized in the table below.

Reconciliation of GAAP gross margin, gross margin percentage, loss from continuing operations before income taxes, loss from continuing operations and diluted loss per share from continuing operations to Non-GAAP gross margin, adjusted gross margin percentage, adjusted loss from continuing operations before income taxes, adjusted loss from continuing operations and adjusted diluted loss per share from continuing operations:

(United States dollars, in millions except per share data)

For the fiscal year ended February 28, 2015
———————————————————
Loss from
continuing Diluted
operations loss per
before Loss from share from
Gross Gross income Continuing continuing
Margin Margin % taxes Operations operations
———————————————————
As reported $ 1,604 48.1% $ (385) $ (304) $ (0.58)
Adjustments:
CORE charges (1) 23 0.7% 322 294
Fiscal 2015
Debenture Fair
Value Adjustment
(2) – -% 80 80
Rockstar Sale
Adjustment (3) – -% (115) (115)
———————————————————
Adjusted $ 1,627 48.8% $ (98) $ (45) (0.09)
———————————————————
———————————————————

Note: Non-GAAP gross margin, non-GAAP gross margin percentage, non-GAAP loss from continuing operations before tax, non-GAAP loss from continuing operations and non-GAAP diluted loss per share from continuing operations do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company’s operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of the Company’s GAAP results.

(1) During fiscal 2015, the Company incurred charges related to the CORE
program of approximately $322 million pre-tax, or $294 million after
tax, of which $23 million were included in cost of sales, $70 million
were included in research and development and $229 million were
included in selling, marketing, and administration expenses.
(2) During the fiscal 2015, the Company recorded non-cash adjustments
associated with the change in the fair value of the Debentures of
approximately $80 million. These adjustments were presented on a
separate line in the Statements of Operations.
(3) During the fourth quarter of fiscal 2015, the Company recorded the
Rockstar Sale Adjustment of approximately $115 million. This adjustment
is included in investment income (loss), net in the Statement of
Operations.

Supplementary Geographic Revenue Breakdown

Blackberry Limited
(United States dollars, in millions)
Revenue by Region

For the quarter ended
—————————————————
February 28, November 29, August 30,
2015 2014 2014
—————————————————
North America $ 205 31.0% $ 213 26.9% $ 297 32.4%
Europe, Middle East and
Africa 283 42.9% 366 46.1% 368 40.2%
Latin America 60 9.1% 84 10.6% 111 12.1%
Asia Pacific 112 17.0% 130 16.4% 140 15.3%
—————————————————
Total $ 660 100.0% $ 793 100.0% $ 916 100.0%
—————————————————
—————————————————

For the quarter ended
————————————————–
May 31, 2014 March 1, 2014
————————————————–
North America $ 276 28.6% $ 297 30.4%
Europe, Middle East and
Africa 414 42.9% 412 42.2%
Latin America 125 12.9% 127 13.0%
Asia Pacific 151 15.6% 140 14.4%
————————————————–
Total $ 966 100.0% $ 976 100.0%
————————————————–
————————————————–

Conference Call and Webcast
A conference call and live webcast will be held beginning at 8 am ET, which can be accessed by dialing 1-888-503-8168 or by logging on at http://ca.blackberry.com/company/investors/events.html. A replay of the conference call will also be available at approximately 10 am ET by dialing 1-647-436-0148 and entering pass code 8015758# or by clicking the link above. This replay will be available until midnight ET April 10th, 2015.