BLACKBERRY Ltd 8-K, filed Sep 22, 2021

BLACKBERRY Ltd (BB)

8-K 2021-09-22 For: 2021-09-22

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Added on April 08, 2026

About this 8-K

BLACKBERRY Ltd filed this 8-K on September 22, 2021.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares	BB	New York Stock Exchange
Common Shares	BB	Toronto Stock Exchange


Exhibit No.						Description
99.1						Press release, dated September 2 2 , 2021, issued by BlackBerry Limited

104						Cover Page Interactive Data File (embedded within the Inline XBRL document)


	Three Months Ended									Six Months Ended
	August 31, 2021			May 31, 2021			August 31, 2020			August 31, 2021			August 31, 2020
Revenue	$	175		$	174		$	259		$	349		$	465
Cost of sales	63			60			60			123			123
Gross margin	112			114			199			226			342
Gross margin %	64.0		%	65.5		%	76.8		%	64.8		%	73.5		%
Operating expenses
Research and development	58			57			57			115			114
Selling, marketing and administration	83			73			79			156			169
Amortization	45			46			46			91			92
Impairment of goodwill	—			—			—			—			594
Impairment of long-lived assets	—			—			21			—			21
Debentures fair value adjustment	67			(4)			18			63			19

	253			172			221			425			1,009
Operating loss	(141)			(58)			(22)			(199)			(667)
Investment loss, net	(1)			(2)			(5)			(3)			(5)

Loss before income taxes	(142)			(60)			(27)			(202)			(672)
Provision for (recovery of) income taxes	2			2			(4)			4			(13)
Net loss	$	(144)		$	(62)		$	(23)		$	(206)		$	(659)
Loss per share
Basic	$	(0.25)		$	(0.11)		$	(0.04)		$	(0.36)		$	(1.18)
Diluted	$	(0.25)		$	(0.11)		$	(0.04)		$	(0.36)		$	(1.18)

Weighted-average number of common shares outstanding (000s)
Basic	568,082			567,358			558,882			567,724			558,365
Diluted	568,082			567,358			558,882			567,724			558,365
Total common shares outstanding (000s)	566,995			566,248			556,468			566,995			556,468


	As at
	August 31, 2021		February 28, 2021
Assets
Current
Cash and cash equivalents	$	291	$	214
Short-term investments	416		525
Accounts receivable, net of allowance of $9 and $10, respectively	121		182
Other receivables	23		25
Income taxes receivable	9		10
Other current assets	50		50
	910		1,006
Restricted cash equivalents and restricted short-term investments	27		28
Long-term investments	38		37
Other long-term assets	13		16

Operating lease right-of-use assets, net	57		63
Property, plant and equipment, net	44		48
Goodwill	848		849
Intangible assets, net	695		771
	$	2,632	$	2,818
Liabilities
Current
Accounts payable	$	22	$	20
Accrued liabilities	174		178
Income taxes payable	9		6

Deferred revenue, current	198		225
	403		429
Deferred revenue, non-current	46		69
Operating lease liabilities	79		90
Other long-term liabilities	4		6
Long-term debentures	782		720

	1,314		1,314
Shareholders’ equity
Capital stock and additional paid-in capital	2,845		2,823
Deficit	(1,512)		(1,306)
Accumulated other comprehensive loss	(15)		(13)
	1,318		1,504
	$	2,632	$	2,818


	Six Months Ended
	August 31, 2021		August 31, 2020
Cash flows from operating activities


Net loss	$	(206)	$	(659)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization	97		100

Stock-based compensation	17		22
Impairment of goodwill	—		594
Impairment of long-lived assets	—		21



Debentures fair value adjustment	63		19


Operating leases	(8)		(2)
Other	(2)		(3)
Net changes in working capital items
Accounts receivable, net of allowance	61		(29)
Other receivables	2		(11)

Income taxes receivable	1		(3)
Other assets	4		43
Accounts payable	2		(2)
Accrued liabilities	(2)		(21)
Income taxes payable	3		(12)
Deferred revenue	(50)		(57)
Net cash used in operating activities	(18)		—
Cash flows from investing activities
Acquisition of long-term investments	(1)		(1)

Acquisition of property, plant and equipment	(4)		(3)

Acquisition of intangible assets	(14)		(16)


Acquisition of short-term investments	(429)		(320)
Proceeds on sale or maturity of restricted short-term investments	24		—
Proceeds on sale or maturity of short-term investments	537		794


Net cash provided by investing activities	113		454
Cash flows from financing activities
Issuance of common shares	5		6




Payment of finance lease liability	—		(1)



Net cash provided by financing activities	5		5
Effect of foreign exchange gain on cash, cash equivalents, restricted cash, and restricted cash equivalents	—		1
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period	100		460
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period	218		426
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period	$	318	$	886


	For the Three Months Ended (in millions) (unaudited)
	Cyber Security						IoT				Licensing and Other			Segment Totals
	August 31, 2021			August 31, 2020				August 31, 2021			August 31, 2020			August 31, 2021			August 31, 2020			August 31, 2021			August 31, 2020
Segment revenue	$	120		$	120			$	40		$	31		$	15		$	108		$	175		$	259
Segment cost of sales	49			46				7			6			6			7			62			59
Segment gross margin	$	71		$	74			$	33		$	25		$	9		$	101		$	113		$	200
Segment gross margin %	59		%	62		%		83		%	81		%	60		%	94		%	65		%	77		%


	For the Three Months Ended August 31, 2021
	(in millions) (unaudited)
	Cyber Security		IoT		Licensing and Other		Segment Totals		Reconciling Items		Consolidated U.S. GAAP
Revenue	$	120	$	40	$	15	$	175	$	—	$	175
Cost of sales (1)	49		7		6		62		1		63
Gross margin	$	71	$	33	$	9	$	113	$	(1)	$	112
Operating expenses									253		253
Investment loss, net									1		1
Loss before income taxes											$	(142)


For the Three Months Ended (in millions)	August 31, 2021			August 31, 2020




Gross margin	$	112		$	199



Stock compensation expense	1			1
Adjusted gross margin	$	113		$	200

Gross margin %	64.0		%	76.8		%



Stock compensation expense	0.6		%	0.4		%
Adjusted gross margin %	64.6		%	77.2		%


For the Three Months Ended (in millions, except per share amounts)	August 31, 2021			August 31, 2020
			Basic loss per share			Basic earnings (loss) per share
Net loss	$	(144)	$(0.25)	$	(23)	$(0.04)


Restructuring charges	—			1
Stock compensation expense	12			9
Debentures fair value adjustment	67			18

Acquired intangibles amortization	32			32


LLA impairment charge	—			21



Adjusted net income (loss)	$	(33)	$(0.06)	$	58	$0.10


For the Six Months Ended (in millions)	August 31, 2021			August 31, 2020




Gross margin	$	226		$	342



Stock compensation expense	2			3
Adjusted gross margin	$	228		$	345

Gross margin %	64.8		%	73.5		%



Stock compensation expense	0.5		%	0.7		%
Adjusted gross margin %	65.3		%	74.2		%

Operating expense	$	425		$	1,009
Restructuring charges	—			2
Stock compensation expense	17			20
Debentures fair value adjustment	63			19

Acquired intangibles amortization	64			65

Goodwill impairment charge	—			594
LLA impairment charge	—			21


Adjusted operating expense	$	281		$	288


For the Six Months Ended (in millions, except per share amounts)	August 31, 2021			August 31, 2020
			Basic loss per share			Basic earnings (loss) per share
Net loss	$	(206)	$(0.36)	$	(659)	$(1.18)


Restructuring charges	—			2
Stock compensation expense	19			23
Debentures fair value adjustment	63			19

Acquired intangibles amortization	64			65

Goodwill impairment charge	—			594
LLA impairment charge	—			21



Adjusted net income (loss)	$	(60)	$(0.11)	$	65	$0.12


For the Three Months Ended (in millions)	August 31, 2021


Annual Recurring Revenue
Cyber Security	$	364
IoT	$	89
Dollar-Based Net Retention Rate
Cyber Security	95		%

Recurring Software Product Revenue	~ 80%